Vale (NYSE:VALE) Sets New 1-Year High - Here's What Happened

Key Points

• Vale hit a new 52-week high, trading as high as $17.77 (last at $17.675) on volume of about 7.09 million shares, giving it a market cap near $80.2 billion.
• Analysts hold a consensus rating of "Moderate Buy" with an average price target of $15.91, though firms are split—Goldman raised its target to $18 (buy) and Barclays to $16.50 (overweight) while Zacks cut Vale to a hold.
• Vale reported a notable earnings miss (EPS of -$0.90 vs. $0.52 expected) while revenue topped estimates at $11.06 billion, and insiders purchased shares at about $16.11, signaling management buying.

Shares of Vale S.A. (NYSE:VALE - Get Free Report) hit a new 52-week high on Tuesday . The company traded as high as $17.77 and last traded at $17.6750, with a volume of 7085453 shares trading hands. The stock had previously closed at $17.45.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on VALE shares. Zacks Research lowered Vale from a "strong-buy" rating to a "hold" rating in a report on Thursday, February 5th. Barclays increased their price objective on Vale from $15.50 to $16.50 and gave the company an "overweight" rating in a report on Monday, March 2nd. The Goldman Sachs Group increased their price objective on Vale from $13.80 to $18.00 and gave the company a "buy" rating in a report on Friday, January 30th. Wells Fargo & Company reissued a "cautious" rating and issued a $15.50 price objective on shares of Vale in a report on Monday, February 16th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Vale in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $15.91.

Vale Stock Performance

The stock has a market capitalization of $80.18 billion, a price-to-earnings ratio of 31.53 and a beta of 0.53. The firm has a fifty day moving average of $16.04 and a 200 day moving average of $13.95. 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 posted its earnings results on Friday, February 13th. The basic materials company reported ($0.90) EPS for the quarter, missing the consensus estimate of $0.52 by ($1.42). The company 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%. On average, sell-side analysts anticipate that Vale S.A. will post 1.85 earnings per share for the current fiscal year.

Insider Activity

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

Institutional Trading of Vale

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Capital World Investors grew its holdings in Vale by 58.2% in the fourth 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 during the period. GQG Partners LLC grew its holdings in Vale by 42.4% in the fourth quarter. GQG Partners LLC now owns 65,132,572 shares of the basic materials company's stock valued at $848,677,000 after purchasing an additional 19,397,396 shares during the period. Capital International Investors grew its holdings in Vale by 4.3% in the third quarter. Capital International Investors now owns 46,215,387 shares of the basic materials company's stock valued at $501,715,000 after purchasing an additional 1,910,266 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in Vale by 2,239.6% in the fourth 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 during the period. Finally, Invesco Ltd. grew its holdings in Vale by 16.7% in the third 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 during the period. 21.85% of the stock is owned by institutional investors and hedge funds.

About Vale

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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