Stock Traders Purchase High Volume of Vale Call Options (NYSE:VALE)

Key Points

• Vale S.A. experienced a significant increase in options trading, with 66,593 call options purchased, which is a 122% increase compared to its average volume.
• The company's upcoming dividend payment of $0.3417 represents a substantial 740.0% yield with a payout ratio of 58.54%.
• Analyst ratings for Vale show a mix of opinions, with a current average rating of "Moderate Buy" and an average price target of $11.71.

Vale S.A. (NYSE:VALE - Get Free Report) was the target of unusually large options trading activity on Tuesday. Traders acquired 66,593 call options on the company. This is an increase of approximately 122% compared to the typical daily volume of 30,022 call options.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on VALE. JPMorgan Chase & Co. decreased their target price on shares of Vale from $15.00 to $13.50 and set an "overweight" rating on the stock in a report on Thursday, September 4th. Clarkson Capital initiated coverage on shares of Vale in a report on Wednesday, September 3rd. They issued a "buy" rating and a $12.00 price target on the stock. Zacks Research lowered shares of Vale from a "hold" rating to a "strong sell" rating in a report on Tuesday, September 9th. UBS Group reissued a "neutral" rating and issued a $10.00 price target (up previously from $9.00) on shares of Vale in a report on Monday, August 4th. Finally, Scotiabank decreased their price target on shares of Vale from $13.00 to $12.50 and set a "sector perform" rating on the stock in a report on Tuesday, July 22nd. Six investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $11.71.

Institutional Investors Weigh In On Vale

Several institutional investors and hedge funds have recently modified their holdings of VALE. GQG Partners LLC purchased a new stake in shares of Vale in the 1st quarter worth about $371,778,000. Invesco Ltd. lifted its position in Vale by 1,534.8% during the 2nd quarter. Invesco Ltd. now owns 24,810,285 shares of the basic materials company's stock valued at $240,908,000 after acquiring an additional 23,292,629 shares during the period. Orbis Allan Gray Ltd lifted its position in Vale by 165.9% during the 1st quarter. Orbis Allan Gray Ltd now owns 31,257,989 shares of the basic materials company's stock valued at $311,955,000 after acquiring an additional 19,500,437 shares during the period. Lazard Asset Management LLC lifted its position in Vale by 49.3% during the 4th quarter. Lazard Asset Management LLC now owns 18,238,313 shares of the basic materials company's stock valued at $161,773,000 after acquiring an additional 6,023,144 shares during the period. Finally, Fisher Asset Management LLC lifted its position in Vale by 31.8% during the 2nd quarter. Fisher Asset Management LLC now owns 21,705,260 shares of the basic materials company's stock valued at $210,758,000 after acquiring an additional 5,234,201 shares during the period. 21.85% of the stock is owned by hedge funds and other institutional investors.

Vale Trading Up 0.4%

Vale stock traded up $0.04 during trading hours on Friday, reaching $10.67. The stock had a trading volume of 25,682,421 shares, compared to its average volume of 20,584,778. The stock has a market cap of $48.45 billion, a PE ratio of 8.68 and a beta of 0.79. Vale has a 52 week low of $8.06 and a 52 week 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 0.85. The company has a fifty day simple moving average of $10.06 and a 200-day simple moving average of $9.71.

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, topping analysts' consensus estimates of $0.34 by $0.16. The business had revenue of $8.80 billion for the quarter, compared to analyst estimates of $9.54 billion. Vale had a net margin of 14.23% and a return on equity of 18.14%. Analysts forecast that Vale will post 1.85 EPS for the current fiscal year.

Vale Cuts Dividend

The company also recently declared a semi-annual dividend, which was paid on Wednesday, September 10th. Shareholders of record on Wednesday, August 13th were issued a $0.3417 dividend. This represents a yield of 740.0%. The ex-dividend date of this dividend was Wednesday, August 13th. Vale's dividend payout ratio (DPR) is 59.35%.

About Vale

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.