Kawa Capital Management Inc Cuts Stock Position in Vale S.A. $VALE

Key Points

• Kawa Capital Management Inc has reduced its stake in Vale S.A. by 40%, selling 400,000 shares and now holding 600,000 shares, which represent 13.5% of their holdings.
• Several institutional investors have recently acquired stakes in Vale, with notable increases in holdings by Golden State Wealth Management LLC and Allworth Financial LP.
• Vale's most recent earnings report showed earnings per share of $0.50, beating estimates, and the company also announced a semi-annual dividend yielding approximately 740.0%.

Kawa Capital Management Inc reduced its position in shares of Vale S.A. (NYSE:VALE - Free Report) by 40.0% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 600,000 shares of the basic materials company's stock after selling 400,000 shares during the quarter. Vale accounts for 13.5% of Kawa Capital Management Inc's investment portfolio, making the stock its 4th biggest holding. Kawa Capital Management Inc's holdings in Vale were worth $6,054,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also modified their holdings of the business. GQG Partners LLC acquired a new position in shares of Vale during the 1st quarter valued at about $371,778,000. Orbis Allan Gray Ltd boosted its position in Vale by 165.9% during the first quarter. Orbis Allan Gray Ltd now owns 31,257,989 shares of the basic materials company's stock worth $311,955,000 after purchasing an additional 19,500,437 shares during the period. Woodline Partners LP acquired a new position in Vale during the fourth quarter valued at approximately $39,775,000. Massachusetts Financial Services Co. MA raised its position in shares of Vale by 38.0% in the first quarter. Massachusetts Financial Services Co. MA now owns 15,932,405 shares of the basic materials company's stock valued at $159,005,000 after purchasing an additional 4,389,959 shares during the period. Finally, Driehaus Capital Management LLC acquired a new stake in shares of Vale in the first quarter worth $36,118,000. Institutional investors and hedge funds own 21.85% of the company's stock.

Vale Price Performance

Shares of VALE traded down $0.03 on Wednesday, hitting $10.89. The company's stock had a trading volume of 15,832,720 shares, compared to its average volume of 35,871,152. The company has a market capitalization of $49.41 billion, a PE ratio of 8.85 and a beta of 0.79. Vale S.A. has a fifty-two week low of $8.06 and a fifty-two week high of $12.05. The company has a 50 day moving average price of $10.10 and a 200 day moving average price of $9.73. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.22 and a quick ratio of 0.85.

Vale (NYSE:VALE - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The basic materials company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.16. The business had revenue of $8.80 billion for the quarter, compared to the consensus estimate of $9.54 billion. Vale had a net margin of 14.23% and a return on equity of 18.14%. On average, research analysts anticipate that Vale S.A. will post 1.85 earnings per share for the current fiscal year.

Vale Cuts Dividend

The company also recently declared a semi-annual dividend, which was paid on Wednesday, September 10th. Stockholders of record on Wednesday, August 13th were given a dividend of $0.3417 per share. This represents a dividend yield of 740.0%. The ex-dividend date of this dividend was Wednesday, August 13th. Vale's dividend payout ratio (DPR) is currently 59.35%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on VALE shares. Clarkson Capital assumed coverage on Vale in a research report on Wednesday, September 3rd. They issued a "buy" rating and a $12.00 price target on the stock. Barclays increased their target price on Vale from $12.75 to $13.00 and gave the company an "overweight" rating in a research note on Wednesday, July 2nd. Zacks Research downgraded Vale from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 9th. Scotiabank reduced their price objective on Vale from $13.00 to $12.50 and set a "sector perform" rating for the company in a research report on Tuesday, July 22nd. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Vale from $15.00 to $13.50 and set an "overweight" rating on the stock in a research note on Thursday, September 4th. Six analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Vale has a consensus rating of "Hold" and an average price target of $11.71.

Vale Company Profile

Vale SA, together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services.