Vale S.A. $VALE Shares Sold by Capital International Investors

Key Points

• Capital International Investors cut its Vale stake by 40.2% in the fourth quarter, selling 18.6 million shares and leaving the firm with 27.6 million shares worth about $360.3 million.
• Analysts remain split on Vale, with a Moderate Buy consensus and an average price target of $16.65; recent ratings ranged from Equal Weight to Overweight and Hold.
• Vale reported Q1 earnings of $0.44 per share, missing estimates, while revenue of $9.26 billion also came in below expectations; the stock recently traded at $15.20, near its 200-day average.

Capital International Investors lessened its holdings in Vale S.A. (NYSE:VALE - Free Report) by 40.2% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 27,642,423 shares of the basic materials company's stock after selling 18,572,964 shares during the quarter. Capital International Investors' holdings in Vale were worth $360,298,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in VALE. N.E.W. Advisory Services LLC acquired a new position in Vale in the fourth quarter worth $26,000. Cary Street Partners Investment Advisory LLC boosted its holdings in Vale by 60.0% in the third quarter. Cary Street Partners Investment Advisory LLC now owns 2,748 shares of the basic materials company's stock worth $30,000 after purchasing an additional 1,030 shares during the period. Bruce G. Allen Investments LLC acquired a new position in Vale in the fourth quarter worth $33,000. Triumph Capital Management acquired a new position in Vale in the third quarter worth $34,000. Finally, Cornerstone Planning Group LLC boosted its holdings in Vale by 15,360.0% in the fourth quarter. Cornerstone Planning Group LLC now owns 3,092 shares of the basic materials company's stock worth $40,000 after purchasing an additional 3,072 shares during the period. Institutional investors and hedge funds own 21.85% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have commented on VALE. Wells Fargo & Company decreased their price objective on shares of Vale from $17.00 to $16.00 and set an "equal weight" rating for the company in a report on Thursday, April 30th. Barclays boosted their price target on shares of Vale from $15.50 to $16.50 and gave the company an "overweight" rating in a report on Monday, March 2nd. Weiss Ratings reissued a "hold (c)" rating on shares of Vale in a report on Friday, April 10th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $18.00 price target on shares of Vale in a report on Friday, May 15th. Finally, Scotiabank boosted their price target on shares of Vale from $16.50 to $18.00 and gave the company a "sector perform" rating in a report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $16.65.

Insider Activity

In related news, insider Parenti Grazielle Tallia acquired 10,464 shares of Vale stock in a transaction that occurred on Wednesday, April 1st. The stock was acquired at an average price of $16.11 per share, with a total value of $168,575.04. Following the completion of the acquisition, the insider directly owned 10,464 shares of the company's stock, valued at $168,575.04. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Sobrinho Sami Arap acquired 12,990 shares of Vale stock in a transaction that occurred on Wednesday, April 1st. The stock was bought at an average cost of $16.11 per share, with a total value of $209,268.90. Following the acquisition, the vice president directly owned 12,990 shares of the company's stock, valued at approximately $209,268.90. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information.

Vale Stock Performance

Shares of VALE opened at $15.20 on Monday. Vale S.A. has a 1 year low of $8.97 and a 1 year high of $17.94. The company has a market cap of $68.97 billion, a price-to-earnings ratio of 22.68 and a beta of 0.46. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.79 and a current ratio of 1.24. The firm has a fifty day moving average of $16.53 and a 200-day moving average of $15.29.

Vale (NYSE:VALE - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The basic materials company reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.52 by ($0.08). Vale had a net margin of 7.21% and a return on equity of 21.10%. The firm had revenue of $9.26 billion for the quarter, compared to analyst estimates of $9.53 billion. As a group, equities analysts anticipate that Vale S.A. will post 2.15 earnings per share for the current year.

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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