Scotiabank Forecasts Strong Price Appreciation for Vale (NYSE:VALE) Stock

Key Points

• Scotiabank raised its price target on Vale from $16.50 to $18.00 while keeping a "sector perform" rating, implying about 10.46% upside from the current share price.
• Other analysts have also been mostly constructive on the stock, with recent moves including upgrades and higher targets from Barclays, Bank of America, and Goldman Sachs. MarketBeat shows Vale carrying an average rating of Moderate Buy with an average target of $16.65.
• Vale’s latest quarter missed Wall Street estimates, reporting EPS of $0.44 versus $0.52 expected and revenue of $9.26 billion versus $9.53 billion expected. The stock traded around $16.30, near its 52-week high of $17.94.

Vale (NYSE:VALE - Get Free Report) had its price target lifted by Scotiabank from $16.50 to $18.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has a "sector perform" rating on the basic materials company's stock. Scotiabank's price objective indicates a potential upside of 10.46% from the company's current price.

A number of other equities research analysts have also recently commented on VALE. Barclays raised their price objective on shares of Vale from $15.50 to $16.50 and gave the stock an "overweight" rating in a research note on Monday, March 2nd. Bank of America raised shares of Vale from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $18.00 to $19.00 in a report on Thursday, April 2nd. The Goldman Sachs Group upped their price objective on shares of Vale from $13.80 to $18.00 and gave the stock a "buy" rating in a research report on Friday, January 30th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $18.00 target price on shares of Vale in a research report on Friday, May 15th. Finally, Wells Fargo & Company reduced their price target on Vale from $17.00 to $16.00 and set an "equal weight" rating for the company in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, Vale presently has an average rating of "Moderate Buy" and an average price target of $16.65.

Vale Stock Performance

Shares of NYSE:VALE traded down $0.20 during midday trading on Wednesday, reaching $16.30. The company's stock had a trading volume of 2,860,047 shares, compared to its average volume of 32,915,066. The firm has a market capitalization of $73.97 billion, a PE ratio of 24.29 and a beta of 0.46. Vale has a twelve month low of $8.97 and a twelve month high of $17.94. The stock has a fifty day moving average of $16.31 and a 200 day moving average of $15.07. The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.48.

Vale (NYSE:VALE - Get Free Report) last posted its earnings results on Tuesday, April 28th. The basic materials company reported $0.44 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($0.08). The business had revenue of $9.26 billion for the quarter, compared to analyst estimates of $9.53 billion. Vale had a net margin of 7.21% and a return on equity of 21.10%. On average, equities analysts expect that Vale will post 2.12 EPS for the current fiscal year.

Insider Transactions at Vale

In other news, insider Parenti Grazielle Tallia acquired 10,464 shares of the business's stock in a transaction on Wednesday, April 1st. The stock was bought at an average cost of $16.11 per share, for a total transaction of $168,575.04. Following the purchase, the insider owned 10,464 shares in the company, valued at approximately $168,575.04. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Sobrinho Sami Arap bought 12,990 shares of Vale stock in a transaction on Wednesday, April 1st. The shares were purchased 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. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing.

Institutional Trading of Vale

Several large investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. lifted its holdings in Vale by 2.2% in the 4th quarter. PNC Financial Services Group Inc. now owns 28,913 shares of the basic materials company's stock valued at $377,000 after purchasing an additional 632 shares in the last quarter. Chesapeake Capital Corp IL grew its holdings in shares of Vale by 0.9% during the fourth quarter. Chesapeake Capital Corp IL now owns 72,358 shares of the basic materials company's stock worth $943,000 after buying an additional 646 shares in the last quarter. Checchi Capital Advisers LLC raised its position in shares of Vale by 1.8% in the fourth quarter. Checchi Capital Advisers LLC now owns 38,134 shares of the basic materials company's stock valued at $497,000 after buying an additional 675 shares during the last quarter. NewEdge Wealth LLC raised its position in shares of Vale by 2.8% in the first quarter. NewEdge Wealth LLC now owns 25,799 shares of the basic materials company's stock valued at $410,000 after buying an additional 708 shares during the last quarter. Finally, Quadrant Capital Group LLC lifted its stake in shares of Vale by 1.3% in the fourth quarter. Quadrant Capital Group LLC now owns 66,870 shares of the basic materials company's stock worth $871,000 after buying an additional 853 shares in the last quarter. 21.85% of the stock is currently owned by hedge funds and other institutional investors.

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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