Scotiabank Has Pessimistic Outlook of Vale FY2026 Earnings

Key Points

• Scotiabank cut its FY2026 EPS estimate for Vale to $2.45 from $2.57, while keeping a Sector Perform rating and an $18 price target on the stock.
• Vale recently missed Q1 earnings expectations, reporting $0.44 EPS versus the $0.52 consensus and revenue of $9.26 billion versus expectations of $9.53 billion.
• Despite mixed analyst sentiment, Vale shares were up 0.2% at $16.28, and the stock currently carries a Moderate Buy consensus with an average price target of $16.65.

Vale S.A. (NYSE:VALE - Free Report) - Stock analysts at Scotiabank lowered their FY2026 earnings per share estimates for Vale in a research note issued to investors on Friday, May 29th. Scotiabank analyst A. Salazar now expects that the basic materials company will earn $2.45 per share for the year, down from their prior forecast of $2.57. Scotiabank currently has a "Sector Perform" rating and a $18.00 target price on the stock. The consensus estimate for Vale's current full-year earnings is $2.09 per share. Scotiabank also issued estimates for Vale's FY2027 earnings at $2.26 EPS.

A number of other analysts also recently commented on the company. UBS Group upped their target price on Vale from $12.00 to $16.00 and gave the stock a "neutral" rating in a research note on Friday, March 27th. Wall Street Zen downgraded Vale from a "buy" rating to a "hold" rating in a research report on Saturday. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $18.00 price target on shares of Vale in a research report on Friday, May 15th. Wells Fargo & Company lowered their price target on Vale from $17.00 to $16.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 30th. Finally, Royal Bank Of Canada downgraded Vale from an "outperform" rating to a "sector perform" rating and increased their price target for the stock from $14.50 to $15.50 in a research report on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $16.65.

Vale Stock Up 0.2%

Shares of VALE opened at $16.28 on Monday. Vale has a 52 week low of $8.97 and a 52 week high of $17.94. The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $73.87 billion, a price-to-earnings ratio of 24.29 and a beta of 0.46. The stock's 50-day moving average price is $16.40 and its 200-day moving average price is $15.16.

Vale (NYSE:VALE - Get Free Report) last issued its earnings results on Tuesday, April 28th. The basic materials company reported $0.44 EPS for the quarter, missing analysts' consensus estimates of $0.52 by ($0.08). Vale had a return on equity of 21.10% and a net margin of 7.21%.The company had revenue of $9.26 billion during the quarter, compared to analysts' expectations of $9.53 billion.

Insider Activity at Vale

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

Hedge Funds Weigh In On Vale

Institutional investors have recently added to or reduced their stakes in the stock. N.E.W. Advisory Services LLC purchased a new position in Vale during the fourth quarter worth approximately $26,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna lifted its position in Vale by 128.3% during the fourth quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna now owns 2,055 shares of the basic materials company's stock worth $27,000 after buying an additional 1,155 shares in the last quarter. Cary Street Partners Investment Advisory LLC lifted its position in Vale by 60.0% during 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 buying an additional 1,030 shares in the last quarter. Bruce G. Allen Investments LLC purchased a new position in Vale during the fourth quarter worth approximately $33,000. Finally, Triumph Capital Management purchased a new position in Vale during the third quarter worth approximately $34,000. Hedge funds and other institutional investors own 21.85% of the company's stock.

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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