Turim 21 Investimentos Ltda. Cuts Stake in Vale S.A. $VALE

Key Points

• Turim 21 Investimentos cut its Vale stake by 5% in the second quarter, selling 133,618 shares and retaining 2.55 million shares valued at approximately $38.3 million. Vale remains the fund’s fifth-largest holding, representing 6.2% of its portfolio.
• Analyst sentiment is mixed but leans neutral: Vale has a consensus “Hold” rating and an average price target of $16.00, with recent downgrades from Zacks Research and Goldman Sachs.
• Vale missed quarterly expectations, reporting adjusted EPS of $0.36 versus a $0.46 estimate and revenue of $10.24 billion versus $10.47 billion expected. The company also declared a special dividend of $0.3088 per share.

Turim 21 Investimentos Ltda. lessened its holdings in Vale S.A. (NYSE:VALE - Free Report) by 5.0% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,545,258 shares of the basic materials company's stock after selling 133,618 shares during the period. Vale accounts for about 6.2% of Turim 21 Investimentos Ltda.'s investment portfolio, making the stock its 5th biggest holding. Turim 21 Investimentos Ltda. owned approximately 0.06% of Vale worth $38,281,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of VALE. NewEdge Advisors LLC lifted its position in shares of Vale by 4.9% in the first quarter. NewEdge Advisors LLC now owns 79,400 shares of the basic materials company's stock worth $792,000 after buying an additional 3,704 shares during the last quarter. Jones Financial Companies Lllp boosted its stake in shares of Vale by 46.6% during the 1st quarter. Jones Financial Companies Lllp now owns 37,613 shares of the basic materials company's stock worth $375,000 after acquiring an additional 11,964 shares in the last quarter. Empowered Funds LLC acquired a new position in shares of Vale during the 1st quarter valued at about $171,000. Strs Ohio bought a new position in shares of Vale in the 1st quarter valued at approximately $117,000. Finally, Sivia Capital Partners LLC bought a new position in shares of Vale in the 2nd quarter valued at approximately $123,000. 21.85% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts recently weighed in on VALE shares. Zacks Research lowered Vale from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. Morgan Stanley reissued an "equal weight" rating and issued a $16.50 price target (down from $19.50) on shares of Vale in a research report on Wednesday, July 8th. Barclays boosted their price objective on shares of Vale from $16.75 to $17.00 and gave the stock an "equal weight" rating in a research note on Monday, August 3rd. UBS Group reaffirmed a "neutral" rating and set a $16.50 price objective on shares of Vale in a report on Tuesday, August 11th. Finally, The Goldman Sachs Group downgraded shares of Vale from a "buy" rating to a "neutral" rating and dropped their target price for the stock from $18.00 to $16.00 in a report on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $16.00.

Vale Price Performance

NYSE:VALE opened at $13.93 on Thursday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.19 and a quick ratio of 0.77. Vale S.A. has a one year low of $9.68 and a one year high of $17.94. The company has a fifty day moving average price of $14.76 and a 200 day moving average price of $15.73. The stock has a market cap of $63.21 billion, a P/E ratio of 28.42 and a beta of 0.47.

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

Vale Dividend Announcement

The company also recently declared a special dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 13th will be issued a $0.3088 dividend. The ex-dividend date of this dividend is Thursday, August 13th. Vale's dividend payout ratio is 89.80%.

Vale Company 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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