Vale (NYSE:VALE) Price Target Raised to $18.50

Key Points

• JPMorgan raised its price target on Vale to $18.50 (from $18.00) and maintained an "overweight" rating, implying roughly an 8.5% upside from the prior close.
• Vale posted a major quarterly EPS miss of ($0.90) versus $0.52 expected while beating revenue expectations ($11.06B vs. $10.86B); analysts' consensus labels the stock a "Moderate Buy" with an average target of $15.91.
• Insiders and institutions are buying: company insiders purchased shares at about $16.11 and large asset managers (e.g., Capital World Investors, GQG, Arrowstreet) markedly increased their stakes, indicating significant institutional accumulation.

Vale (NYSE:VALE - Get Free Report) had its price objective lifted by equities research analysts at JPMorgan Chase & Co. from $18.00 to $18.50 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the basic materials company's stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 8.54% from the company's previous close.

Other research analysts have also recently issued reports about the company. Wells Fargo & Company reiterated a "cautious" rating and issued a $15.50 price objective on shares of Vale in a report on Monday, February 16th. UBS Group upped 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. Zacks Research cut Vale from a "strong-buy" rating to a "hold" rating in a research note on Thursday, February 5th. Barclays lifted their target price on Vale from $15.50 to $16.50 and gave the company an "overweight" rating in a research report on Monday, March 2nd. Finally, Scotiabank restated a "sector perform" rating and set a $16.50 price target on shares of Vale in a report on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Vale has an average rating of "Moderate Buy" and an average price target of $15.91.

Vale Stock Performance

NYSE:VALE traded up $0.40 during mid-day trading on Friday, hitting $17.05. The company's stock had a trading volume of 31,074,606 shares, compared to its average volume of 36,832,238. The stock has a market cap of $77.37 billion, a price-to-earnings ratio of 30.42 and a beta of 0.53. Vale has a 1 year low of $8.93 and a 1 year high of $17.72. The business's fifty day moving average is $15.99 and its two-hundred day moving average is $13.82. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.15 and a quick ratio of 0.78.

Vale (NYSE:VALE - Get Free Report) last issued its quarterly earnings results on Friday, February 13th. The basic materials company reported ($0.90) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($1.42). Vale had a return on equity of 20.16% and a net margin of 6.12%.The business had revenue of $11.06 billion for the quarter, compared to analysts' expectations of $10.86 billion. Analysts anticipate that Vale will post 1.85 EPS for the current fiscal year.

Insider Activity at Vale

In related news, insider Parenti Grazielle Tallia purchased 10,464 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The stock was purchased at an average cost of $16.11 per share, with a total value of $168,575.04. Following the completion of the acquisition, the insider directly owned 10,464 shares in the company, valued at $168,575.04. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Sobrinho Sami Arap acquired 12,990 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was purchased at an average price of $16.11 per share, for a total transaction of $209,268.90. Following the completion of the transaction, the vice president owned 12,990 shares in the company, valued at $209,268.90. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

Institutional Investors Weigh In On Vale

Several institutional investors have recently modified their holdings of the company. Capital World Investors lifted its stake in shares of Vale by 58.2% in 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 purchasing an additional 32,864,929 shares in the last quarter. GQG Partners LLC increased its position in shares of Vale by 42.4% during the fourth quarter. GQG Partners LLC now owns 65,132,572 shares of the basic materials company's stock worth $848,677,000 after acquiring an additional 19,397,396 shares during the last quarter. Capital International Investors lifted its stake in shares of Vale by 4.3% in the third quarter. Capital International Investors now owns 46,215,387 shares of the basic materials company's stock worth $501,715,000 after acquiring an additional 1,910,266 shares in the last quarter. Arrowstreet Capital Limited Partnership grew 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 purchasing an additional 39,818,066 shares in the last quarter. Finally, Invesco Ltd. grew its position in shares of Vale by 16.7% during the third quarter. Invesco Ltd. now owns 28,961,848 shares of the basic materials company's stock worth $314,526,000 after buying an additional 4,151,563 shares in the last quarter. 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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