Vale S.A. (NYSE:VALE) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Vale S.A. has received an average rating of “Moderate Buy” from sixteen brokerages, with 8 buy recommendations and 1 strong buy recommendation among them.
• The company recently increased its price target, with Barclays setting it at $13.80 and JPMorgan Chase & Co. at $14.00.
• Vale's quarterly earnings surpassed expectations, reporting $0.50 per share against an anticipated $0.34, while also announcing a semi-annual dividend of $0.3417 per share.

Shares of Vale S.A. (NYSE:VALE - Get Free Report) have been given an average rating of "Moderate Buy" by the sixteen brokerages that are currently covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, six have given a hold recommendation, eight have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $12.1333.

A number of equities analysts have recently issued reports on the company. Barclays upped their price objective on Vale from $13.70 to $13.80 and gave the stock an "overweight" rating in a report on Friday, October 10th. JPMorgan Chase & Co. upped their price objective on Vale from $13.50 to $14.00 and gave the stock an "overweight" rating in a report on Monday. Weiss Ratings restated a "sell (d+)" rating on shares of Vale in a report on Wednesday, October 8th. Zacks Research upgraded Vale from a "strong sell" rating to a "hold" rating in a report on Wednesday, October 8th. Finally, Morgan Stanley set a $11.50 target price on Vale in a report on Wednesday, October 8th.

Vale Price Performance

VALE opened at $11.29 on Wednesday. The stock has a 50-day moving average price of $10.61 and a 200-day moving average price of $9.93. Vale has a 12-month low of $8.06 and a 12-month high of $11.46. The company has a current ratio of 1.22, a quick ratio of 0.85 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $51.23 billion, a P/E ratio of 9.18 and a beta of 0.80.

Vale (NYSE:VALE - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The basic materials company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.16. Vale had a return on equity of 18.14% and a net margin of 14.23%.The firm had revenue of $8.80 billion during the quarter, compared to analysts' expectations of $9.54 billion. Equities analysts predict that Vale will post 1.85 earnings per share for the current fiscal year.

Vale Cuts Dividend

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

Institutional Investors Weigh In On Vale

Several institutional investors have recently bought and sold shares of VALE. Wealth Enhancement Advisory Services LLC boosted its holdings in Vale by 38.5% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 22,522 shares of the basic materials company's stock valued at $225,000 after acquiring an additional 6,261 shares during the period. Blue Trust Inc. boosted its holdings in Vale by 5.1% during the 1st quarter. Blue Trust Inc. now owns 25,876 shares of the basic materials company's stock valued at $258,000 after acquiring an additional 1,248 shares during the period. Cambridge Investment Research Advisors Inc. boosted its holdings in Vale by 7.7% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 499,380 shares of the basic materials company's stock valued at $4,984,000 after acquiring an additional 35,836 shares during the period. Oppenheimer & Co. Inc. bought a new position in Vale during the 1st quarter valued at approximately $228,000. Finally, AssuredPartners Investment Advisors LLC raised its position in Vale by 70.0% during the 1st quarter. AssuredPartners Investment Advisors LLC now owns 38,637 shares of the basic materials company's stock valued at $386,000 after purchasing an additional 15,903 shares during the last quarter. 21.85% of the stock is currently 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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