Zacks Investment Research upgraded shares of Vale (NYSE:VALE) from a hold rating to a buy rating in a research note issued to investors on Monday morning. They currently have $17.00 price target on the basic materials company’s stock.
According to Zacks, “Vale expects to produce more than 100 million tons (Mt) per quarter in the second half of 2018 to meet its full year guidance of approximately 390 Mt. The company will be able to achieve this as volumes continue to improve at its S11D mine. Vale’s cash cost is expected to be lower than $13 per ton in second-half 2018, benefiting from the competitiveness of growing S11D volumes, seasonally lower costs and higher production. Vale is steadily deleveraging its balance sheet via increased free cash flow generation. Steel demand continues to be strong backed by growing global economy, strong machinery and construction sector activity. Steel-makers continue to look for higher iron ore grade and low alumina iron ore to increase productivity while lowering emissions. In this regard, Vale is well positioned as a major supplier of sinter fines combining high iron and low alumina. Its shares have outperformed the industry over the past year.”
Other analysts also recently issued reports about the stock. Jefferies Financial Group raised shares of Vale from a hold rating to a buy rating and set a $16.00 target price on the stock in a research note on Friday, September 7th. Macquarie downgraded shares of Vale from an outperform rating to a neutral rating in a research note on Tuesday, September 25th. ValuEngine downgraded shares of Vale from a buy rating to a hold rating in a research note on Friday, August 17th. BMO Capital Markets set a $16.00 target price on shares of Vale and gave the company a buy rating in a research note on Monday, July 30th. Finally, Clarkson Capital raised shares of Vale from a neutral rating to a buy rating in a research note on Tuesday, July 24th. One analyst has rated the stock with a sell rating, five have given a hold rating and ten have given a buy rating to the company. Vale has an average rating of Buy and an average price target of $15.05.
Shares of NYSE:VALE opened at $15.93 on Monday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.25 and a current ratio of 1.68. Vale has a 12-month low of $9.53 and a 12-month high of $16.13. The firm has a market cap of $77.43 billion, a price-to-earnings ratio of 11.80 and a beta of 1.72.
Vale (NYSE:VALE) last announced its earnings results on Thursday, July 26th. The basic materials company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.18. Vale had a net margin of 13.17% and a return on equity of 17.47%. The company had revenue of $8.62 billion for the quarter, compared to the consensus estimate of $8.75 billion. On average, sell-side analysts forecast that Vale will post 1.4 earnings per share for the current fiscal year.
The business also recently declared a special dividend, which was paid on Thursday, September 27th. Stockholders of record on Monday, August 6th were issued a dividend of $0.0462 per share. The ex-dividend date of this dividend was Friday, August 3rd. Vale’s dividend payout ratio is currently 5.93%.
Institutional investors have recently bought and sold shares of the company. Whittier Trust Co. of Nevada Inc. grew its holdings in shares of Vale by 1,518.3% during the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 8,027 shares of the basic materials company’s stock valued at $106,000 after acquiring an additional 7,531 shares in the last quarter. Smithfield Trust Co. bought a new stake in Vale in the second quarter worth $121,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in Vale in the first quarter worth $127,000. Moors & Cabot Inc. bought a new stake in Vale in the first quarter worth $132,000. Finally, Johnson Financial Group Inc. boosted its holdings in Vale by 84.1% in the second quarter. Johnson Financial Group Inc. now owns 11,600 shares of the basic materials company’s stock worth $149,000 after purchasing an additional 5,300 shares in the last quarter. Institutional investors and hedge funds own 20.01% of the company’s stock.
Vale Company Profile
Vale SA, together with its subsidiaries, produces and sells iron ore and iron ore pallets 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, as well as engages in the provision of related railroad, port, and terminal logistics services.
Read More: Outstanding Shares and The Effect on Share Price
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