Vale (NYSE:VALE) Reaches New 52-Week High - Here's What Happened

Key Points

• Vale (NYSE:VALE) shares hit a new 52-week high of $11.33, closing at $11.19, with a trading volume of approximately 6.2 million shares.
• Barclays and Scotiabank have notably upgraded their ratings for Vale, with Barclays increasing its price target to $13.70 and Scotiabank setting a price objective at $14.00.
• Vale recently paid a dividend of $0.3417, reflecting a high dividend yield of 740.0%, although its payout ratio stands at 59.35%.

Vale S.A. (NYSE:VALE - Get Free Report) shares reached a new 52-week high during trading on Thursday . The company traded as high as $11.33 and last traded at $11.19, with a volume of 6197402 shares changing hands. The stock had previously closed at $11.10.

Analyst Upgrades and Downgrades

VALE has been the subject of a number of research analyst reports. Barclays increased their price target on Vale from $13.50 to $13.70 and gave the stock an "overweight" rating in a report on Thursday, September 18th. UBS Group upped their price objective on shares of Vale from $10.00 to $11.00 and gave the stock a "neutral" rating in a report on Monday. Scotiabank raised shares of Vale from a "sector perform" rating to a "sector outperform" rating and set a $14.00 price objective for the company in a research report on Thursday, September 18th. Clarkson Capital began coverage on Vale in a research report on Wednesday, September 3rd. They issued a "buy" rating and a $12.00 target price on the stock. Finally, Zacks Research cut Vale from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 9th. Seven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $11.95.

Vale Stock Performance

The firm's 50-day moving average is $10.41 and its 200 day moving average is $9.86. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.85 and a current ratio of 1.22. The stock has a market cap of $50.07 billion, a PE ratio of 8.97 and a beta of 0.80.

Vale (NYSE:VALE - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The basic materials company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.34 by $0.16. Vale had a return on equity of 18.14% and a net margin of 14.23%.The business had revenue of $8.80 billion during the quarter, compared to analysts' expectations of $9.54 billion. As a group, research analysts anticipate that Vale S.A. will post 1.85 EPS for the current year.

Vale Cuts Dividend

The firm also recently declared a semi-annual dividend, which was paid on Wednesday, September 10th. Stockholders of record on Wednesday, August 13th were issued a $0.3417 dividend. This represents a dividend yield of 740.0%. The ex-dividend date of this dividend was Wednesday, August 13th. Vale's dividend payout ratio (DPR) is currently 59.35%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Banque Transatlantique SA acquired a new stake in shares of Vale in the 1st quarter worth approximately $30,000. CENTRAL TRUST Co purchased a new stake in shares of Vale in the second quarter valued at $34,000. GAMMA Investing LLC increased its position in Vale by 98.4% during the 2nd quarter. GAMMA Investing LLC now owns 4,075 shares of the basic materials company's stock worth $40,000 after purchasing an additional 2,021 shares in the last quarter. J.Safra Asset Management Corp purchased a new stake in Vale during the 1st quarter worth about $41,000. Finally, Golden State Wealth Management LLC raised its stake in Vale by 193.0% in the 1st quarter. Golden State Wealth Management LLC now owns 4,119 shares of the basic materials company's stock valued at $41,000 after purchasing an additional 2,713 shares during the last quarter. 21.85% of the stock is owned by hedge funds and other institutional investors.

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.

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