Vale S.A. (NYSE:VALE) Sees Significant Growth in Short Interest

Key Points

• Short interest in Vale S.A. surged by 476,549.5% in July, reaching a total of 92,470,000 shares, which represents 2.2% of its total shares.
• Analysts have mixed views on Vale, with six analysts rating it as a hold and five issuing a buy rating, resulting in a consensus price target of $11.73.
• Vale reported $0.50 EPS for the last quarter, exceeding estimates, but its revenue of $8.80 billion fell short of the expected $9.54 billion.

Vale S.A. (NYSE:VALE - Get Free Report) was the target of a large growth in short interest in the month of July. As of July 15th, there was short interest totaling 92,470,000 shares, agrowthof476,549.5% from the June 30th total of 19,400 shares. Based on an average daily volume of 38,150,000 shares, the days-to-cover ratio is currently 2.4 days. Currently,2.2% of the company's shares are sold short. Currently,2.2% of the company's shares are sold short. Based on an average daily volume of 38,150,000 shares, the days-to-cover ratio is currently 2.4 days.

Vale Stock Performance

NYSE VALE traded up $0.11 during trading hours on Tuesday, hitting $9.96. The company had a trading volume of 10,592,490 shares, compared to its average volume of 38,168,020. Vale has a fifty-two week low of $8.06 and a fifty-two week high of $12.05. The company has a quick ratio of 0.74, a current ratio of 1.11 and a debt-to-equity ratio of 0.49. The business has a fifty day simple moving average of $9.69 and a 200-day simple moving average of $9.57. The firm has a market cap of $45.19 billion, a P/E ratio of 8.09 and a beta of 0.74.

Vale (NYSE:VALE - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The basic materials company reported $0.50 EPS for the quarter, beating analysts' consensus estimates of $0.34 by $0.16. The company had revenue of $8.80 billion for the quarter, compared to analyst estimates of $9.54 billion. Vale had a return on equity of 18.58% and a net margin of 14.23%. Equities analysts predict that Vale will post 1.85 EPS for the current year.

Vale Cuts Dividend

The business also recently declared a semi-annual dividend, which will be paid on Wednesday, September 10th. Investors of record on Wednesday, August 13th will be given a $0.3417 dividend. The ex-dividend date is Wednesday, August 13th. This represents a dividend yield of 740.0%. Vale's dividend payout ratio (DPR) is 60.98%.

Hedge Funds Weigh In On Vale

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. FMR LLC lifted its stake in Vale by 28.8% in the 4th quarter. FMR LLC now owns 47,163,226 shares of the basic materials company's stock worth $418,338,000 after acquiring an additional 10,557,888 shares in the last quarter. GQG Partners LLC acquired a new stake in Vale in the 1st quarter valued at approximately $371,778,000. Price T Rowe Associates Inc. MD grew its holdings in shares of Vale by 20.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 33,995,398 shares of the basic materials company's stock worth $301,541,000 after purchasing an additional 5,775,590 shares in the last quarter. Orbis Allan Gray Ltd grew its holdings in shares of Vale by 165.9% during the 1st quarter. Orbis Allan Gray Ltd now owns 31,257,989 shares of the basic materials company's stock worth $311,955,000 after purchasing an additional 19,500,437 shares in the last quarter. Finally, Lazard Asset Management LLC grew its holdings in shares of Vale by 49.3% during the 4th quarter. Lazard Asset Management LLC now owns 18,238,313 shares of the basic materials company's stock worth $161,773,000 after purchasing an additional 6,023,144 shares in the last quarter. Institutional investors and hedge funds own 21.85% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. UBS Group boosted their target price on Vale from $9.00 to $10.00 and gave the stock a "neutral" rating in a report on Monday. Scotiabank decreased their price target on Vale from $13.00 to $12.50 and set a "sector perform" rating for the company in a report on Tuesday, July 22nd. Wall Street Zen initiated coverage on Vale in a research report on Wednesday, May 7th. They set a "hold" rating on the stock. Royal Bank Of Canada reissued a "sector perform" rating and set a $11.00 price target (down from $12.00) on shares of Vale in a research report on Thursday, April 17th. Finally, Bank of America raised Vale from a "neutral" rating to a "buy" rating and upped their price target for the company from $11.00 to $11.50 in a research report on Thursday, April 10th. Six analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, Vale presently has a consensus rating of "Hold" and an average target price of $11.84.

Vale Company Profile

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.