Larch Capital Partners LLC Invests $18.23 Million in Vale S.A. $VALE

Key Points

• Larch Capital Partners disclosed a new position in Vale S.A., buying 1,374,389 shares worth about $18.23 million in the fourth quarter. Vale now makes up roughly 2.5% of the firm’s portfolio and is its second-largest holding.
• Other large institutional investors also boosted their Vale stakes, including Arrowstreet Capital, Capital World Investors, and GQG Partners, suggesting continued strong hedge fund interest in the stock. Overall, hedge funds and other institutions own about 21.85% of Vale shares.
• Vale recently reported quarterly earnings of $0.44 per share, missing analyst expectations, and revenue also came in below forecasts. Despite that, analysts still rate the stock Moderate Buy on average, with a consensus price target of $16.85.

Larch Capital Partners LLC purchased a new position in shares of Vale S.A. (NYSE:VALE - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 1,374,389 shares of the basic materials company's stock, valued at approximately $18,229,000. Vale accounts for approximately 2.5% of Larch Capital Partners LLC's investment portfolio, making the stock its 2nd biggest holding.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in VALE. Arrowstreet Capital Limited Partnership increased its holdings in Vale by 2,239.6% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 41,596,000 shares of the basic materials company's stock worth $541,996,000 after buying an additional 39,818,066 shares during the last quarter. Capital World Investors lifted its stake in Vale by 58.2% in the fourth quarter. Capital World Investors now owns 89,322,261 shares of the basic materials company's stock valued at $1,163,896,000 after acquiring an additional 32,864,929 shares during the last quarter. GQG Partners LLC lifted its stake in Vale by 42.4% in the fourth quarter. GQG Partners LLC now owns 65,132,572 shares of the basic materials company's stock valued at $848,677,000 after acquiring an additional 19,397,396 shares during the last quarter. Robeco Institutional Asset Management B.V. grew its position in Vale by 77.8% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 20,809,302 shares of the basic materials company's stock worth $271,145,000 after acquiring an additional 9,103,727 shares in the last quarter. Finally, AQR Capital Management LLC grew its position in Vale by 826.7% in the fourth quarter. AQR Capital Management LLC now owns 9,530,954 shares of the basic materials company's stock worth $124,188,000 after acquiring an additional 8,502,501 shares in the last quarter. 21.85% of the stock is owned by hedge funds and other institutional investors.

Vale Stock Performance

Vale stock opened at $15.44 on Friday. Vale S.A. has a 52-week low of $8.97 and a 52-week high of $17.94. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.24 and a quick ratio of 0.79. The stock has a fifty day moving average price of $16.48 and a two-hundred day moving average price of $15.49. The firm has a market capitalization of $70.06 billion, a P/E ratio of 23.04 and a beta of 0.46.

Vale (NYSE:VALE - Get Free Report) last posted its earnings results on Tuesday, April 28th. The basic materials company reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.52 by ($0.08). The firm had revenue of $9.26 billion during the quarter, compared to the consensus estimate of $9.53 billion. Vale had a return on equity of 21.10% and a net margin of 7.21%. As a group, analysts anticipate that Vale S.A. will post 2.13 EPS for the current fiscal year.

Insider Transactions at Vale

In related news, insider Parenti Grazielle Tallia bought 10,464 shares of Vale stock in a transaction dated Wednesday, April 1st. The shares were bought at an average cost of $16.11 per share, for a total transaction of $168,575.04. Following the completion of the transaction, the insider owned 10,464 shares of the company's stock, valued at approximately $168,575.04. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Sobrinho Sami Arap purchased 12,990 shares of the firm's stock in a transaction dated Wednesday, April 1st. The shares were bought at an average cost of $16.11 per share, for a total transaction of $209,268.90. Following the completion of the purchase, the vice president directly owned 12,990 shares of the company's stock, valued at $209,268.90. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

Analyst Ratings Changes

Several research firms have recently issued reports on VALE. JPMorgan Chase & Co. upped their price target on Vale from $19.50 to $21.00 and gave the stock an "overweight" rating in a research note on Friday, June 12th. Scotiabank set a $19.00 target price on Vale in a report on Monday. UBS Group upped their target price on Vale from $12.00 to $16.00 and gave the stock a "neutral" rating in a research report on Friday, March 27th. Wall Street Zen downgraded shares of Vale from a "buy" rating to a "hold" rating in a report on Saturday, May 30th. Finally, Barclays raised their target price on shares of Vale from $15.50 to $16.50 and gave the company an "overweight" rating in a research note on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, Vale currently has an average rating of "Moderate Buy" and an average price target of $16.85.

Vale Profile

Vale SA is a Brazilian multinational mining company and one of the world's largest producers of iron ore and iron ore pellets. In addition to iron ore, the company produces and sells a range of bulk commodities and metals, including nickel, copper, coal, manganese, ferroalloys and cobalt, and it participates in the fertilizer inputs market. Vale also operates extensive logistics assets — including rail, port and maritime logistics — that support its mining and export activities and provide services to third parties in some regions.

Headquartered in Brazil, Vale maintains a global operational footprint with mining, processing and shipping activities across the Americas, Africa, Asia and Oceania.

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