Zacks Investment Research upgraded shares of Vale (NYSE:VALE) from a hold rating to a strong-buy rating in a research report released on Tuesday, Zacks.com reports. The brokerage currently has $13.00 price target on the basic materials company’s stock.
According to Zacks, “Vale expects iron ore fines production in 2020 to come in at the lower end of range of 310 Mt to 330 Mt. The coronavirus pandemic led to a 3.5 Mt loss of iron ore production in the second quarter and is expected to have a 6.3 Mt impact in the second half. The company continues to strive to sustain margins by focusing on product line, improving productivity and cutting costs. Vale is poised well to gain from high iron ore prices this year. The consensus estimate for the company’s ongoing quarter and current fiscal year earnings have thus undergone positive estimate revisions lately. Also, continued investment in growth projects, efforts to lower debt levels, ramp up its coal business and transforming base metals business will also aid growth for the company. Vale remains focused on introducing more high-quality ore in the market.”
Other equities research analysts have also recently issued reports about the company. Deutsche Bank upped their price objective on Vale from $11.00 to $13.00 and gave the stock a buy rating in a research note on Thursday, June 11th. UBS Group upgraded Vale from a neutral rating to a buy rating and decreased their price objective for the stock from $13.00 to $12.00 in a research note on Wednesday, June 3rd. Royal Bank of Canada decreased their price objective on Vale from $16.30 to $16.00 and set an outperform rating for the company in a research note on Tuesday, July 28th. BNP Paribas upgraded Vale from a neutral rating to an outperform rating in a research note on Friday, June 5th. Finally, Exane BNP Paribas upgraded Vale from a neutral rating to an outperform rating in a research note on Friday, June 5th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of Buy and a consensus target price of $13.71.
Shares of Vale stock opened at $11.84 on Tuesday. Vale has a 52 week low of $6.49 and a 52 week high of $13.67. The company has a market capitalization of $60.72 billion, a PE ratio of 45.54 and a beta of 1.01. The stock’s fifty day moving average is $11.39 and its two-hundred day moving average is $9.85. The company has a quick ratio of 1.46, a current ratio of 1.82 and a debt-to-equity ratio of 0.53.
Vale (NYSE:VALE) last issued its earnings results on Thursday, July 30th. The basic materials company reported $0.22 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.33 by ($0.11). Vale had a return on equity of 17.48% and a net margin of 3.82%. The firm had revenue of $7.52 billion during the quarter, compared to analysts’ expectations of $7.13 billion. As a group, research analysts anticipate that Vale will post 1.62 earnings per share for the current year.
The firm also recently declared a semi-annual dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Wednesday, September 23rd will be given a dividend of $0.2675 per share. The ex-dividend date of this dividend is Tuesday, September 22nd. This represents a yield of 1.9%. Vale’s dividend payout ratio is currently 13.75%.
Large investors have recently bought and sold shares of the business. Asset Management One Co. Ltd. raised its position in Vale by 48.6% during the first quarter. Asset Management One Co. Ltd. now owns 470,238 shares of the basic materials company’s stock worth $3,898,000 after acquiring an additional 153,873 shares during the period. Paloma Partners Management Co raised its position in Vale by 114.4% during the first quarter. Paloma Partners Management Co now owns 93,542 shares of the basic materials company’s stock worth $775,000 after acquiring an additional 49,920 shares during the period. Sumitomo Mitsui Trust Holdings Inc. raised its position in shares of Vale by 4.6% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 346,820 shares of the basic materials company’s stock valued at $3,576,000 after buying an additional 15,400 shares during the last quarter. Mackenzie Financial Corp acquired a new stake in shares of Vale in the first quarter valued at about $250,000. Finally, Alliancebernstein L.P. raised its position in shares of Vale by 6.5% in the first quarter. Alliancebernstein L.P. now owns 678,592 shares of the basic materials company’s stock valued at $5,626,000 after buying an additional 41,357 shares during the last quarter. Institutional investors own 18.40% of the company’s stock.
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. It operates through Ferrous Minerals, Coal, and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and others ferrous products and services; and provides related logistic services.
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