Vale (NYSE:VALE) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Vale from a "buy" to a "hold"; despite mixed analyst moves, the stock's consensus rating remains a Moderate Buy with an average price target of $16.02.
• Vale reported a quarterly earnings miss (EPS $(0.90) vs. $0.52 expected) while slightly beating revenue estimates ($11.06B vs. $10.86B), and its shares traded around $17.17 with a $77.95 billion market cap and a one‑year range of $8.97–$17.94.
• Insiders bought stock (two purchases totaling ~23,454 shares at $16.11 each) and several large institutional investors materially increased positions, indicating notable insider and hedge‑fund buying interest.

Vale (NYSE:VALE - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

A number of other analysts have also recently weighed in on the stock. Barclays increased their price objective on shares of Vale from $15.50 to $16.50 and gave the stock an "overweight" rating in a report on Monday, March 2nd. Royal Bank Of Canada cut shares of Vale from an "outperform" rating to a "sector perform" rating and increased their price objective for the stock from $14.50 to $15.50 in a report on Thursday, March 12th. Scotiabank reaffirmed a "sector perform" rating and issued a $16.50 price objective on shares of Vale in a report on Monday, February 9th. Morgan Stanley increased their price objective on shares of Vale from $18.00 to $19.50 and gave the stock an "overweight" rating in a report on Thursday, April 9th. Finally, UBS Group increased their price objective on shares of Vale from $12.00 to $16.00 and gave the stock a "neutral" rating in a report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $16.02.

Vale Stock Up 0.2%

Shares of NYSE:VALE opened at $17.17 on Friday. The stock has a market capitalization of $77.95 billion, a price-to-earnings ratio of 30.67 and a beta of 0.53. Vale has a 1-year low of $8.97 and a 1-year high of $17.94. The company's fifty day moving average is $16.16 and its two-hundred day moving average is $14.32. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.78 and a current ratio of 1.15.

Vale (NYSE:VALE - Get Free Report) last issued its earnings results on Friday, February 13th. The basic materials company reported ($0.90) earnings per share for the quarter, missing analysts' consensus estimates of $0.52 by ($1.42). The business had revenue of $11.06 billion for the quarter, compared to analyst estimates of $10.86 billion. Vale had a return on equity of 20.16% and a net margin of 6.12%. Equities analysts anticipate that Vale will post 2.08 EPS for the current year.

Insider Activity

In related news, insider Parenti Grazielle Tallia bought 10,464 shares of the stock in a transaction on Wednesday, April 1st. The shares were purchased at an average price of $16.11 per share, with a total value 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 document filed with the SEC, which is available through this hyperlink. Also, VP Sobrinho Sami Arap bought 12,990 shares of the stock in a transaction on Wednesday, April 1st. The shares were bought at an average cost of $16.11 per share, for a total transaction of $209,268.90. Following the purchase, the vice president owned 12,990 shares in the company, valued at $209,268.90. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information.

Hedge Funds Weigh In On Vale

Several large investors have recently bought and sold shares of the stock. Capital World Investors increased its stake in Vale by 58.2% during the 4th quarter. Capital World Investors now owns 89,322,261 shares of the basic materials company's stock valued at $1,163,896,000 after buying an additional 32,864,929 shares during the period. GQG Partners LLC increased its stake in Vale by 42.4% during the 4th quarter. GQG Partners LLC now owns 65,132,572 shares of the basic materials company's stock valued at $848,677,000 after buying an additional 19,397,396 shares during the period. Capital International Investors increased its stake in Vale by 4.3% during the 3rd quarter. Capital International Investors now owns 46,215,387 shares of the basic materials company's stock valued at $501,715,000 after buying an additional 1,910,266 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in Vale by 2,239.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 41,596,000 shares of the basic materials company's stock valued at $541,996,000 after buying an additional 39,818,066 shares during the period. Finally, Invesco Ltd. boosted its position in shares of Vale by 16.7% during the 3rd quarter. Invesco Ltd. now owns 28,961,848 shares of the basic materials company's stock valued at $314,526,000 after purchasing an additional 4,151,563 shares in the last quarter. Institutional investors and hedge funds own 21.85% of the company's stock.

Vale Company Profile

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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