Vale S.A. (NYSE:VALE) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Vale has a consensus “Hold” rating from 15 analysts: 10 holds, three buys, one strong buy and one sell. The average 12-month price target is $16.00.
• Recent broker updates were mixed but generally cautious, with Morgan Stanley, UBS and Goldman Sachs maintaining or moving to neutral ratings and lowering price targets to roughly $16.00–$16.50.
• Vale missed quarterly expectations, reporting $0.36 in EPS versus $0.46 expected and revenue of $10.24 billion versus $10.47 billion expected. The company also declared a special $0.3088 dividend payable September 10.

Vale S.A. (NYSE:VALE - Get Free Report) has earned a consensus recommendation of "Hold" from the fifteen analysts that are covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, ten have issued a hold rating, three have given a buy rating and one has given a strong buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $16.00.

Several analysts have recently issued reports on VALE shares. Morgan Stanley reissued an "equal weight" rating and set a $16.50 price target (down from $19.50) on shares of Vale in a research report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $18.00 price objective on shares of Vale in a report on Friday, May 15th. UBS Group reaffirmed a "neutral" rating and set a $16.50 target price on shares of Vale in a research note on Tuesday, August 11th. The Goldman Sachs Group lowered shares of Vale from a "buy" rating to a "neutral" rating and reduced their target price for the stock from $18.00 to $16.00 in a report on Monday, July 27th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Vale in a research report on Wednesday, July 8th.

Vale Price Performance

VALE stock opened at $13.77 on Tuesday. The business's fifty day moving average price is $14.81 and its 200 day moving average price is $15.78. Vale has a 12-month low of $9.67 and a 12-month high of $17.94. The company has a current ratio of 1.19, a quick ratio of 0.77 and a debt-to-equity ratio of 0.45. The company has a market capitalization of $62.50 billion, a PE ratio of 28.10 and a beta of 0.47.

Vale (NYSE:VALE - Get Free Report) last announced its earnings results on Thursday, July 30th. The basic materials company reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.46 by ($0.10). The firm had revenue of $10.24 billion for the quarter, compared to analysts' expectations of $10.47 billion. Vale had a net margin of 5.11% and a return on equity of 19.87%. On average, sell-side analysts anticipate that Vale will post 1.9 EPS for the current year.

Vale Announces Dividend

The business also recently disclosed a special dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 13th will be paid a $0.3088 dividend. The ex-dividend date is Thursday, August 13th. Vale's dividend payout ratio (DPR) is presently 89.80%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. N.E.W. Advisory Services LLC acquired a new stake in Vale in the 4th quarter valued at about $26,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna boosted its stake in shares of Vale by 128.3% in the 4th quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna now owns 2,055 shares of the basic materials company's stock valued at $27,000 after buying an additional 1,155 shares during the period. Bruce G. Allen Investments LLC acquired a new position in shares of Vale during the fourth quarter worth about $33,000. Triumph Capital Management acquired a new position in shares of Vale during the third quarter worth about $34,000. Finally, Cornerstone Planning Group LLC increased its stake in shares of Vale by 15,360.0% during the fourth quarter. Cornerstone Planning Group LLC now owns 3,092 shares of the basic materials company's stock worth $40,000 after buying an additional 3,072 shares during the period. 21.85% of the stock is owned by institutional investors and hedge funds.

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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