Vale (NYSE:VALE) Sets New 12-Month High on Analyst Upgrade

Key Points

• Vale S.A. shares reached a new 52-week high following an upgrade from JPMorgan Chase, increasing the price target from $13.50 to $14.00, with an current rating of "overweight".
• The stock has received mixed ratings from analysts, with eight analysts giving a Buy rating, six a Hold rating, and one a Sell rating, resulting in a consensus rating of "Hold" with an average price target of $12.13.
• Vale recently announced a semi-annual dividend of $0.3417 per share, yielding 740.0%, and has a payout ratio of 59.35%.

Shares of Vale S.A. (NYSE:VALE - Get Free Report) hit a new 52-week high during mid-day trading on Monday after JPMorgan Chase & Co. raised their price target on the stock from $13.50 to $14.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Vale traded as high as $11.35 and last traded at $11.38, with a volume of 8568001 shares. The stock had previously closed at $11.10.

VALE has been the subject of a number of other research reports. Weiss Ratings restated a "sell (d+)" rating on shares of Vale in a research note on Wednesday, October 8th. Wells Fargo & Company upgraded Vale to a "hold" rating in a research note on Wednesday, October 8th. Zacks Research upgraded shares of Vale from a "strong sell" rating to a "hold" rating in a research note on Wednesday, October 8th. Barclays increased their target price on shares of Vale from $13.70 to $13.80 and gave the stock an "overweight" rating in a research report on Friday, October 10th. Finally, UBS Group boosted their price target on shares of Vale from $10.00 to $11.00 and gave the company a "neutral" rating in a research report on Monday, October 6th. Eight research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $12.13.

Institutional Investors Weigh In On Vale

A number of institutional investors and hedge funds have recently made changes to their positions in VALE. Park Avenue Securities LLC raised its stake in Vale by 8.5% during the second quarter. Park Avenue Securities LLC now owns 13,935 shares of the basic materials company's stock valued at $135,000 after buying an additional 1,087 shares during the last quarter. MAI Capital Management grew its holdings in shares of Vale by 5.1% in the first quarter. MAI Capital Management now owns 23,597 shares of the basic materials company's stock worth $235,000 after acquiring an additional 1,155 shares during the period. Busey Bank boosted its holdings in shares of Vale by 8.5% in the third quarter. Busey Bank now owns 15,901 shares of the basic materials company's stock worth $173,000 after buying an additional 1,244 shares during the last quarter. Blue Trust Inc. boosted its stake in shares of Vale by 5.1% during the 1st quarter. Blue Trust Inc. now owns 25,876 shares of the basic materials company's stock worth $258,000 after acquiring an additional 1,248 shares during the last quarter. Finally, Sowell Financial Services LLC lifted its position in Vale by 7.7% during the third quarter. Sowell Financial Services LLC now owns 18,363 shares of the basic materials company's stock valued at $199,000 after purchasing an additional 1,318 shares in the last quarter. Institutional investors own 21.85% of the company's stock.

Vale Price Performance

The company has a quick ratio of 0.85, a current ratio of 1.22 and a debt-to-equity ratio of 0.48. The stock has a market cap of $51.77 billion, a P/E ratio of 9.27 and a beta of 0.80. The firm has a 50 day moving average price of $10.57 and a 200 day moving average price of $9.91.

Vale (NYSE:VALE - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The basic materials company reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.34 by $0.16. Vale had a net margin of 14.23% and a return on equity of 18.14%. The company had revenue of $8.80 billion for the quarter, compared to the consensus estimate of $9.54 billion. On average, analysts forecast that Vale S.A. will post 1.85 EPS for the current fiscal year.

Vale Cuts Dividend

The business also recently announced a semi-annual dividend, which was paid on Wednesday, September 10th. Stockholders of record on Wednesday, August 13th were given a dividend of $0.3417 per share. The ex-dividend date of this dividend was Wednesday, August 13th. This represents a dividend yield of 740.0%. Vale's payout ratio is currently 59.35%.

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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