Wellington Management Group LLP Reduces Stock Position in Vale S.A. $VALE

Key Points

• Wellington Management Group LLP has significantly reduced its holdings in Vale S.A. by selling 2,202,350 shares, resulting in a 59.3% decrease, leaving them with 1,511,125 shares worth approximately $15.1 million.
• Vale's stock is currently trading at $10.23, with a market capitalization of $46.41 billion and a PE ratio of 8.31, while the company recently reported earnings of $0.50 per share, surpassing analyst estimates.
• The company announced a semi-annual dividend of $0.3417 per share, which will yield 740.0% for shareholders, despite the cut in its dividend payout ratio to 58.54%.

Wellington Management Group LLP trimmed its position in shares of Vale S.A. (NYSE:VALE - Free Report) by 59.3% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,511,125 shares of the basic materials company's stock after selling 2,202,350 shares during the period. Wellington Management Group LLP's holdings in Vale were worth $15,081,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. GQG Partners LLC bought a new position in shares of Vale during the first quarter valued at about $371,778,000. Lazard Asset Management LLC raised its stake in shares of Vale by 49.3% during the fourth quarter. Lazard Asset Management LLC now owns 18,238,313 shares of the basic materials company's stock valued at $161,773,000 after acquiring an additional 6,023,144 shares during the last quarter. Massachusetts Financial Services Co. MA raised its stake in shares of Vale by 38.0% during 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 acquiring an additional 4,389,959 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its stake in shares of Vale by 15.6% during the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 11,523,471 shares of the basic materials company's stock valued at $115,004,000 after acquiring an additional 1,557,799 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Vale by 4.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 7,865,596 shares of the basic materials company's stock worth $69,767,000 after buying an additional 313,431 shares in the last quarter. 21.85% of the stock is owned by institutional investors.

Vale Stock Up 0.1%

VALE traded up $0.02 during midday trading on Friday, reaching $10.27. The company's stock had a trading volume of 15,104,382 shares, compared to its average volume of 29,390,490. The firm has a market capitalization of $46.59 billion, a price-to-earnings ratio of 8.35 and a beta of 0.74. The company has a current ratio of 1.22, a quick ratio of 0.85 and a debt-to-equity ratio of 0.48. Vale S.A. has a 1 year low of $8.06 and a 1 year high of $12.05. The stock's 50-day moving average is $9.92 and its 200-day moving average is $9.67.

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

Vale Cuts Dividend

The company also recently declared a semi-annual dividend, which will be paid on Wednesday, September 10th. Stockholders of record on Wednesday, August 13th will be issued a dividend of $0.3417 per share. The ex-dividend date is Wednesday, August 13th. This represents a dividend yield of 740.0%. Vale's dividend payout ratio is presently 58.54%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on VALE. Wall Street Zen began coverage on shares of Vale in a research note on Wednesday, May 7th. They issued a "hold" rating for the company. UBS Group reissued a "neutral" rating and issued a $10.00 price target (up from $9.00) on shares of Vale in a research note on Monday, August 4th. Scotiabank decreased their price target on shares of Vale from $13.00 to $12.50 and set a "sector perform" rating for the company in a research note on Tuesday, July 22nd. CICC Research began coverage on shares of Vale in a research note on Monday, May 12th. They issued an "outperform" rating and a $11.30 price target for the company. Finally, Barclays increased their price target on shares of Vale from $12.75 to $13.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 2nd. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $11.84.

About Vale

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.