Vale (NYSE:VALE) Cut to “Strong Sell” at Zacks Research

Zacks Research lowered shares of Vale (NYSE:VALE) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other equities analysts also recently weighed in on the stock. Barclays boosted their target price on shares of Vale from $12.75 to $13.00 and gave the stock an “overweight” rating in a report on Wednesday, July 2nd. Clarkson Capital began coverage on shares of Vale in a report on Wednesday, September 3rd. They set a “buy” rating and a $12.00 target price on the stock. CICC Research initiated coverage on shares of Vale in a report on Monday, May 12th. They set an “outperform” rating and a $11.30 target price on the stock. Scotiabank decreased their price objective on shares of Vale from $13.00 to $12.50 and set a “sector perform” rating on the stock in a report on Tuesday, July 22nd. Finally, UBS Group reiterated a “neutral” rating and issued a $10.00 price objective (up from $9.00) on shares of Vale in a report on Monday, August 4th. Six investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $11.71.

Vale Price Performance

Shares of VALE opened at $10.63 on Tuesday. The company has a market cap of $48.25 billion, a price-to-earnings ratio of 8.64 and a beta of 0.79. Vale has a 1-year low of $8.06 and a 1-year high of $12.05. The company’s fifty day simple moving average is $10.05 and its 200 day simple moving average is $9.70. The company has a current ratio of 1.22, a quick ratio of 0.85 and a debt-to-equity ratio of 0.48.

Vale (NYSE:VALE) last issued its earnings results on Thursday, July 31st. The basic materials company reported $0.50 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.16. The business had revenue of $8.80 billion for the quarter, compared to the consensus estimate of $9.54 billion. Vale had a net margin of 14.23% and a return on equity of 18.14%. On average, research analysts forecast that Vale will post 1.85 earnings per share for the current fiscal year.

Vale Cuts Dividend

The firm also recently announced a semi-annual dividend, which was paid on Wednesday, September 10th. Stockholders of record on Wednesday, August 13th were given a $0.3417 dividend. This represents a dividend yield of 740.0%. The ex-dividend date of this dividend was Wednesday, August 13th. Vale’s payout ratio is presently 59.35%.

Institutional Investors Weigh In On Vale

Institutional investors have recently modified their holdings of the business. Oppenheimer & Co. Inc. bought a new stake in shares of Vale in the first quarter valued at about $228,000. Golden State Wealth Management LLC boosted its position in shares of Vale by 193.0% in the first quarter. Golden State Wealth Management LLC now owns 4,119 shares of the basic materials company’s stock valued at $41,000 after acquiring an additional 2,713 shares during the period. Cornerstone Wealth Management LLC lifted its position in Vale by 20.4% during the first quarter. Cornerstone Wealth Management LLC now owns 15,954 shares of the basic materials company’s stock worth $159,000 after purchasing an additional 2,707 shares during the period. Wealth Enhancement Advisory Services LLC lifted its position in Vale by 38.5% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 22,522 shares of the basic materials company’s stock worth $225,000 after purchasing an additional 6,261 shares during the period. Finally, Merit Financial Group LLC lifted its position in Vale by 44.4% during the first quarter. Merit Financial Group LLC now owns 20,847 shares of the basic materials company’s stock worth $208,000 after purchasing an additional 6,412 shares during the period. Institutional investors own 21.85% of the company’s stock.

About Vale

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.