Vale (NYSE:VALE) Rating Lowered to Strong Sell at Zacks Research

Vale (NYSE:VALE) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

VALE has been the topic of a number of other reports. Morgan Stanley reiterated an “equal weight” rating and issued a $16.50 price objective (down from $19.50) on shares of Vale in a report on Wednesday, July 8th. JPMorgan Chase & Co. increased their price target on shares of Vale from $19.50 to $21.00 and gave the company an “overweight” rating in a research note on Friday, June 12th. Bank of America upgraded Vale from a “neutral” rating to a “buy” rating and upped their price objective for the company from $18.00 to $19.00 in a research note on Thursday, April 2nd. Scotiabank cut their price target on Vale from $19.00 to $16.00 and set a “sector perform” rating for the company in a report on Monday, July 20th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $18.00 target price on shares of Vale in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Vale has an average rating of “Hold” and a consensus price target of $16.15.

Vale Stock Performance

Shares of VALE opened at $15.03 on Thursday. The firm has a market cap of $68.22 billion, a P/E ratio of 22.43 and a beta of 0.46. Vale has a twelve month low of $9.36 and a twelve month high of $17.94. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.79 and a current ratio of 1.24. The firm’s 50 day moving average price is $15.19 and its two-hundred day moving average price is $15.82.

Vale (NYSE:VALE) last posted its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.44 EPS for the quarter, missing the consensus estimate of $0.52 by ($0.08). The company had revenue of $9.26 billion during the quarter, compared to the consensus estimate of $9.53 billion. Vale had a net margin of 7.21% and a return on equity of 21.10%. On average, analysts forecast that Vale will post 1.92 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of VALE. N.E.W. Advisory Services LLC bought a new position in shares of Vale in the fourth quarter worth about $26,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna boosted its position in Vale by 128.3% in the fourth quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna now owns 2,055 shares of the basic materials company’s stock valued at $27,000 after buying an additional 1,155 shares in the last quarter. Bruce G. Allen Investments LLC bought a new stake in shares of Vale during the fourth quarter worth $33,000. Cornerstone Planning Group LLC increased its holdings in shares of Vale by 15,360.0% during the fourth quarter. Cornerstone Planning Group LLC now owns 3,092 shares of the basic materials company’s stock worth $40,000 after buying an additional 3,072 shares in the last quarter. Finally, Triumph Capital Management acquired a new position in shares of Vale during the third quarter worth $34,000. Institutional investors own 21.85% of the company’s stock.

Vale News Roundup

Here are the key news stories impacting Vale this week:

• Positive Sentiment: Vale’s board approved a program to repurchase up to 100 million shares, which could support per-share value and signal management’s confidence in the company’s valuation and cash generation. Vale Launches New 100 Million-Share Buyback Program
• Positive Sentiment: Vale approved approximately BRL 8.6 billion in shareholder distributions, adding to the stock’s income appeal and reinforcing its capital-return strategy. Vale Approves BRL 8.6 Billion Payout and New Share Buyback Program
• Positive Sentiment: The company highlighted year-over-year growth in its second-quarter results and launched the Serra Sul expansion, potentially improving future iron-ore production and operating scale. Vale Q2 Results and Serra Sul Expansion
• Neutral Sentiment: Vale announced new board leadership, including a vice chairman and lead independent director. The changes may improve oversight and governance, although their direct financial impact is unclear. Vale Board Leadership Changes
• Negative Sentiment: Second-quarter EPS was $0.31, below the $0.46 consensus estimate, while revenue of $10.24 billion also missed expectations of $10.47 billion. The earnings shortfall could pressure sentiment despite reported year-over-year growth. Vale Quarterly Earnings
• Negative Sentiment: Zacks Research downgraded VALE from “Hold” to “Strong Sell,” adding a bearish analyst signal shortly after the earnings release. Zacks Research

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.