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

Key Points

• Vale S.A. has a consensus recommendation of "Moderate Buy" from analysts, with five hold ratings and five buy ratings, reflecting positive sentiment towards the stock.
• The company's earnings report revealed a profit of $0.50 per share, surpassing expectations, despite revenue falling short at $8.80 billion against a forecast of $9.54 billion.
• Vale has recently announced a dividend payment of $0.3417 per share, which will yield approximately 740.0%, although the company has a relatively low payout ratio of 35.77%.

Shares of Vale S.A. (NYSE:VALE - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the ten ratings firms that are covering the stock, Marketbeat.com reports. Five equities research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $11.8444.

Several equities research analysts have recently weighed in on the stock. Bank of America upgraded shares of Vale from a "neutral" rating to a "buy" rating and increased their target price for the stock from $11.00 to $11.50 in a research note on Thursday, April 10th. Scotiabank decreased their price objective on Vale from $13.00 to $12.50 and set a "sector perform" rating for the company in a research report on Tuesday, July 22nd. Barclays boosted their target price on Vale from $12.75 to $13.00 and gave the company an "overweight" rating in a report on Wednesday, July 2nd. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $11.00 price target (down from $12.00) on shares of Vale in a report on Thursday, April 17th. Finally, UBS Group lifted their price objective on shares of Vale from $9.00 to $10.00 and gave the company a "neutral" rating in a research report on Monday.

Vale Stock Up 1.5%

Shares of NYSE VALE opened at $10.00 on Friday. The business has a 50-day moving average of $9.72 and a two-hundred day moving average of $9.58. The company has a market capitalization of $45.37 billion, a price-to-earnings ratio of 8.13 and a beta of 0.74. Vale has a 1 year low of $8.06 and a 1 year high of $12.05. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.22 and a quick ratio of 0.74.

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

Vale Cuts Dividend

The company also recently disclosed a semi-annual dividend, which will be paid on Wednesday, September 10th. Investors of record on Wednesday, August 13th will be issued a dividend of $0.3417 per share. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a yield of 740.0%. Vale's payout ratio is currently 35.77%.

Institutional Trading of Vale

Several large investors have recently modified their holdings of the business. Banque Transatlantique SA purchased a new stake in shares of Vale during the first quarter worth about $30,000. CENTRAL TRUST Co acquired a new stake in Vale during the second quarter worth approximately $34,000. GAMMA Investing LLC grew its stake in Vale by 98.4% in the 2nd quarter. GAMMA Investing LLC now owns 4,075 shares of the basic materials company's stock worth $40,000 after acquiring an additional 2,021 shares during the period. J.Safra Asset Management Corp purchased a new position in shares of Vale during the 1st quarter worth $41,000. Finally, Golden State Wealth Management LLC boosted its holdings in shares of Vale by 193.0% during the first quarter. Golden State Wealth Management LLC now owns 4,119 shares of the basic materials company's stock worth $41,000 after purchasing an additional 2,713 shares during the last quarter. 21.85% of the stock is currently owned by institutional investors and hedge funds.

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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