Vale Sees Unusually High Options Volume (NYSE:VALE)

Key Points

• Vale saw unusually heavy bullish options activity: Investors purchased 329,774 call options, 1,360% above the typical volume of 22,588.
• Vale shares rose 0.6% to $14.40, while the company’s latest quarterly results missed expectations, reporting $0.36 in adjusted EPS versus the $0.46 consensus estimate.
• The company declared a special dividend of $0.3088 per share, payable September 10 to shareholders of record on August 13. Analysts maintain a consensus “Hold” rating with a $16.00 target price.

Vale S.A. (NYSE:VALE - Get Free Report) saw some unusual options trading activity on Wednesday. Investors purchased 329,774 call options on the stock. This is an increase of 1,360% compared to the typical volume of 22,588 call options.

Vale Stock Up 0.6%

Shares of VALE traded up $0.08 during midday trading on Wednesday, reaching $14.40. 18,702,647 shares of the company were exchanged, compared to its average volume of 29,533,998. Vale has a 1-year low of $9.67 and a 1-year high of $17.94. The stock has a 50-day moving average price of $14.94 and a 200-day moving average price of $15.84. 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 cap of $65.36 billion, a price-to-earnings ratio of 29.39 and a beta of 0.47.

Vale (NYSE:VALE - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.36 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.10). The company had revenue of $10.24 billion for the quarter, compared to analyst estimates of $10.47 billion. Vale had a return on equity of 19.87% and a net margin of 5.11%. Research analysts expect that Vale will post 1.9 earnings per share for the current year.

Vale Announces Dividend

The company also recently declared a special dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 13th will be issued a dividend of $0.3088 per share. The ex-dividend date of this dividend is Thursday, August 13th. Vale's dividend payout ratio (DPR) is presently 134.69%.

Hedge Funds Weigh In On Vale

A number of institutional investors have recently added to or reduced their stakes in the company. PNC Financial Services Group Inc. lifted its stake in shares of Vale by 2.2% in the 4th quarter. PNC Financial Services Group Inc. now owns 28,913 shares of the basic materials company's stock valued at $377,000 after purchasing an additional 632 shares during the last quarter. Chesapeake Capital Corp IL raised its holdings in Vale by 0.9% during the fourth quarter. Chesapeake Capital Corp IL now owns 72,358 shares of the basic materials company's stock valued at $943,000 after buying an additional 646 shares in the last quarter. Checchi Capital Advisers LLC lifted its position in shares of Vale by 1.8% in the fourth quarter. Checchi Capital Advisers LLC now owns 38,134 shares of the basic materials company's stock worth $497,000 after buying an additional 675 shares during the last quarter. NewEdge Wealth LLC boosted its stake in shares of Vale by 2.8% during the 1st quarter. NewEdge Wealth LLC now owns 25,799 shares of the basic materials company's stock worth $410,000 after acquiring an additional 708 shares in the last quarter. Finally, Quadrant Capital Group LLC boosted its stake in shares of Vale by 1.3% during the 4th quarter. Quadrant Capital Group LLC now owns 66,870 shares of the basic materials company's stock worth $871,000 after acquiring an additional 853 shares in the last quarter. Institutional investors and hedge funds own 21.85% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. Scotiabank cut their target price on Vale from $19.00 to $16.00 and set a "sector perform" rating on the stock in a research report on Monday, July 20th. Wells Fargo & Company lowered their price target on Vale from $16.00 to $15.00 and set an "equal weight" rating for the company in a research report on Thursday, July 9th. Barclays upped their price target on Vale from $16.75 to $17.00 and gave the stock an "equal weight" rating in a research note on Monday, August 3rd. Weiss Ratings restated a "hold (c)" rating on shares of Vale in a report on Wednesday, July 8th. Finally, Bank of America reaffirmed a "neutral" rating and issued a $16.00 price objective (down from $18.00) on shares of Vale in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Vale presently has an average rating of "Hold" and a consensus target price of $16.00.

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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