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

Key Points

• Wall Street Zen downgraded Vale from a “buy” to a “hold” rating, adding to a mixed analyst outlook on the stock.
• Recent analyst views remain divided: Vale currently carries a “Moderate Buy” consensus, with an average price target of $16.54, while several firms have either maintained hold/equal-weight ratings or adjusted targets lower.
• Vale shares were trading around $14.20, and the company recently reported Q1 earnings of $0.44 per share, below the $0.52 consensus estimate, on revenue of $9.26 billion versus expectations of $9.53 billion.

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

Other analysts also recently issued reports about the company. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Vale in a research report on Monday, June 15th. Morgan Stanley reaffirmed an "equal weight" rating and set a $16.50 price target (down from $19.50) on shares of Vale in a research note on Wednesday, July 8th. JPMorgan Chase & Co. boosted their price objective on shares of Vale from $19.50 to $21.00 and gave the stock an "overweight" rating in a research report on Friday, June 12th. Scotiabank set a $19.00 price objective on shares of Vale in a research note on Monday, June 15th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $18.00 target price on shares of Vale in a report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $16.54.

Vale Stock Down 0.1%

Shares of NYSE VALE opened at $14.20 on Friday. 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 has a 52 week low of $9.36 and a 52 week high of $17.94. The firm has a 50-day moving average price of $15.56 and a 200 day moving average price of $15.74. The stock has a market capitalization of $64.47 billion, a price-to-earnings ratio of 21.20 and a beta of 0.46.

Vale (NYSE:VALE - Get Free Report) last issued its earnings results on Tuesday, April 28th. The basic materials company reported $0.44 earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $9.53 billion. Equities research analysts anticipate that Vale will post 1.98 EPS for the current fiscal year.

Hedge Funds Weigh In On Vale

Institutional investors and hedge funds have recently modified their holdings of the company. N.E.W. Advisory Services LLC purchased a new stake in Vale in the 4th quarter worth approximately $26,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna lifted its stake in shares of Vale by 128.3% during the 4th quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna now owns 2,055 shares of the basic materials company's stock worth $27,000 after purchasing an additional 1,155 shares during the period. Bruce G. Allen Investments LLC acquired a new stake in shares of Vale during the fourth quarter worth $33,000. Cornerstone Planning Group LLC grew its position in shares of Vale by 15,360.0% in the fourth quarter. Cornerstone Planning Group LLC now owns 3,092 shares of the basic materials company's stock valued at $40,000 after purchasing an additional 3,072 shares during the period. Finally, Triumph Capital Management purchased a new stake in shares of Vale in the third quarter valued at $34,000. Hedge funds and other institutional investors 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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