Vale S.A. (NYSE:VALE) Sees Large Growth in Short Interest

Vale S.A. (NYSE:VALE) was the target of a large increase in short interest in the month of July. As of July 15th, there was short interest totaling 92,470,000 shares, anincreaseof476,549.5% from the June 30th total of 19,400 shares. Approximately2.2% of the shares of the company are short sold. Based on an average daily trading volume, of 38,150,000 shares, the days-to-cover ratio is currently 2.4 days. Based on an average daily trading volume, of 38,150,000 shares, the days-to-cover ratio is currently 2.4 days. Approximately2.2% of the shares of the company are short sold.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on VALE shares. Wall Street Zen started coverage on Vale in a report on Wednesday, May 7th. They issued a “hold” rating for the company. Barclays increased their price target on Vale from $12.75 to $13.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 2nd. Royal Bank Of Canada reiterated a “sector perform” rating and set a $11.00 price target (down previously from $12.00) on shares of Vale in a research report on Thursday, April 17th. Bank of America upgraded Vale from a “neutral” rating to a “buy” rating and increased their price target for the stock from $11.00 to $11.50 in a research report on Thursday, April 10th. Finally, Scotiabank lowered their price target on Vale from $13.00 to $12.50 and set a “sector perform” rating on the stock in a research report on Tuesday, July 22nd. Six analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $11.73.

Vale Price Performance

Shares of Vale stock opened at $9.70 on Friday. The business has a 50 day simple moving average of $9.68 and a two-hundred day simple moving average of $9.56. Vale has a 12 month low of $8.06 and a 12 month high of $12.05. The stock has a market capitalization of $44.03 billion, a P/E ratio of 7.89, a PEG ratio of 0.33 and a beta of 0.74. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.11 and a quick ratio of 0.74.

Vale (NYSE:VALE) last announced its earnings results on Thursday, July 31st. The basic materials company reported $0.50 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.16. Vale had a return on equity of 18.58% and a net margin of 14.23%. The business had revenue of $8.80 billion during the quarter, compared to analysts’ expectations of $9.54 billion. As a group, analysts predict that Vale will post 1.85 EPS for the current fiscal year.

Hedge Funds Weigh In On Vale

A number of hedge funds have recently made changes to their positions in VALE. GQG Partners LLC acquired a new stake in shares of Vale in the first quarter valued at approximately $371,778,000. Orbis Allan Gray Ltd increased its holdings in shares of Vale by 165.9% in the first quarter. Orbis Allan Gray Ltd now owns 31,257,989 shares of the basic materials company’s stock valued at $311,955,000 after purchasing an additional 19,500,437 shares during the last quarter. FMR LLC increased its holdings in shares of Vale by 28.8% in the fourth quarter. FMR LLC now owns 47,163,226 shares of the basic materials company’s stock valued at $418,338,000 after purchasing an additional 10,557,888 shares during the last quarter. Lazard Asset Management LLC increased its holdings in shares of Vale by 49.3% in the fourth quarter. Lazard Asset Management LLC now owns 18,238,313 shares of the basic materials company’s stock valued at $161,773,000 after purchasing an additional 6,023,144 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD increased its holdings in shares of Vale by 20.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 33,995,398 shares of the basic materials company’s stock valued at $301,541,000 after purchasing an additional 5,775,590 shares during the last quarter. Institutional investors and hedge funds own 21.85% 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. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services.