Zacks Investment Research Downgrades Vale S.A. (VALE) to Hold
Vale S.A. (NYSE:VALE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “Over the last month, Vale’s shares have underperformed the industry. We believe further downside in iron-ore prices might hurt the company’s top- and bottom-line results in the quarters ahead. Moreover, headwinds such as stiff industry rivalry, sudden outbreak of any natural disaster or unfavorable government policies are expected to thwart near-term results. However, the company reported strong third-quarter 2017 production results. Vale is gradually bringing down its costs, by boosting productivity. In addition, Vale is deleveraging its balance sheet with the help of the company’s ongoing liability management program. Also, over the last 60 days, the Zacks Consensus Estimate for the stock moved north for both 2017 and 2018.”
VALE has been the topic of a number of other reports. Deutsche Bank AG reiterated a “buy” rating and issued a $12.00 target price (down from $12.50) on shares of Vale in a research report on Sunday, June 25th. Clarkson Capital reissued a “neutral” rating on shares of Vale in a research note on Monday, July 10th. Jefferies Group LLC reissued a “hold” rating and set a $8.50 price objective on shares of Vale in a research note on Friday, July 14th. Credit Suisse Group set a $8.00 price objective on Vale and gave the stock a “hold” rating in a research note on Tuesday, June 27th. Finally, Morgan Stanley initiated coverage on Vale in a research note on Monday, September 25th. They set a “weight” rating on the stock. Eleven equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $9.87.
Shares of Vale (NYSE:VALE) traded down 1.17% during trading on Monday, hitting $10.16. The stock had a trading volume of 5,784,047 shares. Vale has a 12 month low of $5.96 and a 12 month high of $11.72. The company has a market cap of $52.36 billion, a PE ratio of 14.66 and a beta of 1.51. The stock has a 50 day moving average of $10.48 and a 200 day moving average of $9.37.
Vale (NYSE:VALE) last posted its earnings results on Thursday, July 27th. The basic materials company reported $0.18 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.01. The company had revenue of $7.24 billion for the quarter. Vale had a return on equity of 16.74% and a net margin of 11.01%. Equities analysts forecast that Vale will post $1.23 EPS for the current fiscal year.
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A number of large investors have recently made changes to their positions in the stock. Fisher Asset Management LLC bought a new position in Vale in the third quarter worth approximately $3,896,000. Eqis Capital Management Inc. grew its stake in Vale by 606.8% in the third quarter. Eqis Capital Management Inc. now owns 71,067 shares of the basic materials company’s stock worth $716,000 after purchasing an additional 61,012 shares in the last quarter. Cetera Investment Advisers bought a new position in Vale in the second quarter worth approximately $2,611,000. Verition Fund Management LLC bought a new position in Vale in the second quarter worth approximately $107,000. Finally, Capital Innovations LLC grew its stake in Vale by 82.8% in the second quarter. Capital Innovations LLC now owns 40,200 shares of the basic materials company’s stock worth $352,000 after purchasing an additional 18,210 shares in the last quarter. 9.55% of the stock is currently owned by institutional investors.
Vale Company Profile
Vale SA is a global producer of iron ore and iron ore pellets, key raw materials for steelmaking, and producer of nickel. The Company also produces copper, metallurgical and thermal coal, potash, phosphates and other fertilizer nutrients, manganese ore, ferroalloys, platinum group metals, gold, silver and cobalt.
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