Vale (NYSE:VALE) Hits New 1-Year Low - Here's What Happened

Key Points

• Vale shares fell to a new 52-week low of $11.42 during Wednesday trading, down from the prior close of $11.84.
• Analyst sentiment is mixed but averages a “Hold” rating: three analysts recommend Buy, ten Hold, and two Sell, with a consensus price target of $15.71.
• Vale’s latest quarterly results missed expectations, reporting $0.36 in EPS versus $0.46 estimated and revenue of $10.24 billion versus $10.47 billion expected; the company also paid a special dividend of $0.3088 per share.

Vale S.A. (NYSE:VALE - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $11.42 and last traded at $11.4550, with a volume of 20,224,623 shares trading hands. The stock had previously closed at $11.84.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Zacks Research lowered shares of Vale from a "hold" rating to a "strong sell" rating in a research report on Monday, October 19th. JPMorgan Chase & Co. boosted their price objective on shares of Vale from $21.00 to $22.00 and gave the company an "overweight" rating in a report on Wednesday, September 30th. The Goldman Sachs Group lowered shares of Vale from a "buy" rating to a "neutral" rating and decreased their target price for the stock from $18.00 to $16.00 in a research report on Monday, July 27th. Barclays lowered their target price on shares of Vale from $17.00 to $15.00 and set an "equal weight" rating on the stock in a report on Tuesday, October 13th. Finally, Wall Street Zen downgraded shares of Vale from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Three research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $15.71.

Vale Price Performance

The stock has a market capitalization of $51.77 billion, a price-to-earnings ratio of 23.29 and a beta of 0.42. The company has a quick ratio of 0.77, a current ratio of 1.19 and a debt-to-equity ratio of 0.45. The business's 50 day simple moving average is $14.03 and its 200-day simple moving average is $15.28.

Vale (NYSE:VALE - Get Free Report) last issued its earnings results on Thursday, July 30th. The basic materials company reported $0.36 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.10). The firm had revenue of $10.24 billion during the quarter, compared to analyst estimates of $10.47 billion. Vale had a net margin of 5.11% and a return on equity of 19.87%. On average, research analysts forecast that Vale S.A. will post 1.65 earnings per share for the current year.

Vale Announces Dividend

The company also recently disclosed a special dividend, which was paid on Thursday, September 10th. Shareholders of record on Thursday, August 13th were given a dividend of $0.3088 per share. The ex-dividend date was Thursday, August 13th. Vale's payout ratio is currently 89.80%.

Institutional Investors Weigh In On Vale

Several institutional investors and hedge funds have recently added to or reduced their stakes in VALE. Nykredit A S bought a new position in Vale in the 2nd quarter valued at approximately $3,162,000. Corient Private Wealth LP acquired a new position in Vale in the 2nd quarter valued at approximately $1,119,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Vale by 445.8% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 115,656 shares of the basic materials company's stock valued at $1,739,000 after acquiring an additional 94,466 shares during the period. Amundi increased its position in Vale by 27.4% in the 2nd quarter. Amundi now owns 2,243,230 shares of the basic materials company's stock valued at $33,738,000 after acquiring an additional 482,313 shares during the period. Finally, Bank of Nova Scotia raised its stake in shares of Vale by 116.2% during the second quarter. Bank of Nova Scotia now owns 231,527 shares of the basic materials company's stock valued at $3,482,000 after acquiring an additional 124,460 shares during the last quarter. 21.85% of the stock is currently owned by institutional investors.

Vale Company Profile

Vale SA is a Brazil-based global mining and logistics company best known for producing iron ore and iron ore pellets, key raw materials used in steelmaking. The company also produces nickel, copper, manganese ore, coal and other mineral products, with operations spanning exploration, extraction, processing and transportation.

Vale operates an extensive logistics network that includes railways, ports and maritime transportation systems, primarily supporting the movement of minerals from its production sites to domestic and international customers.

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