OMERS ADMINISTRATION Corp Sells 6,440,964 Shares of Vale S.A. $VALE

Key Points

• OMERS Administration Corp. cut its Vale stake by 79.9% in the second quarter, selling 6.44 million shares and retaining 1.62 million shares valued at approximately $24.4 million.
• Analyst sentiment remains cautious: Vale has a consensus “Hold” rating and a $16.00 average price target, with recent downgrades from Wall Street Zen and Zacks Research offset by a JPMorgan target increase.
• Vale reported quarterly EPS of $0.36, below the $0.46 consensus, while revenue of $10.24 billion also missed expectations. The company announced a special dividend of $0.3088 per share, payable September 10 to shareholders of record August 13.

OMERS ADMINISTRATION Corp reduced its stake in Vale S.A. (NYSE:VALE - Free Report) by 79.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,619,298 shares of the basic materials company's stock after selling 6,440,964 shares during the quarter. OMERS ADMINISTRATION Corp's holdings in Vale were worth $24,354,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership increased its stake in shares of Vale by 2,239.6% during 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 purchasing an additional 39,818,066 shares during the period. Capital World Investors boosted its stake in Vale by 58.2% in the 4th quarter. Capital World Investors now owns 89,322,261 shares of the basic materials company's stock valued at $1,163,896,000 after purchasing an additional 32,864,929 shares during the period. GQG Partners LLC boosted its stake in Vale by 42.4% in the 4th quarter. GQG Partners LLC now owns 65,132,572 shares of the basic materials company's stock valued at $848,677,000 after purchasing an additional 19,397,396 shares during the period. Assenagon Asset Management S.A. grew its holdings in Vale by 15,202.2% in the 1st quarter. Assenagon Asset Management S.A. now owns 15,663,641 shares of the basic materials company's stock valued at $249,209,000 after buying an additional 15,561,279 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in Vale by 119.9% in the 1st quarter. Bank of America Corp DE now owns 21,837,416 shares of the basic materials company's stock valued at $347,433,000 after buying an additional 11,905,247 shares in the last quarter. 21.85% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on VALE shares. Wall Street Zen lowered shares of Vale from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Zacks Research downgraded shares of Vale from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. increased their target price on shares of Vale from $19.50 to $21.00 and gave the stock an "overweight" rating in a research report on Friday, June 12th. Scotiabank lowered their target price on shares of Vale from $19.00 to $16.00 and set a "sector perform" rating on the stock in a report on Monday, July 20th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating on shares of Vale in a research report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $16.00.

Vale Price Performance

VALE stock opened at $14.58 on Monday. The company has a quick ratio of 0.77, a current ratio of 1.19 and a debt-to-equity ratio of 0.45. Vale S.A. has a 12 month low of $9.80 and a 12 month high of $17.94. The firm has a market cap of $66.18 billion, a P/E ratio of 29.76 and a beta of 0.47. The company's 50-day moving average price is $14.71 and its two-hundred day moving average price is $15.71.

Vale (NYSE:VALE - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.36 earnings per share for the quarter, missing analysts' consensus estimates of $0.46 by ($0.10). The firm had revenue of $10.24 billion for the quarter, compared to the consensus estimate of $10.47 billion. Vale had a return on equity of 19.87% and a net margin of 5.11%. On average, analysts anticipate that Vale S.A. will post 1.9 earnings per share for the current fiscal year.

Vale Announces Dividend

The firm also recently announced a special dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 13th will be paid a dividend of $0.3088 per share. The ex-dividend date is Thursday, August 13th. Vale's dividend payout ratio is presently 89.80%.

About Vale

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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