Vale (NYSE:VALE) Reaches New 1-Year Low – What’s Next?

Vale S.A. (NYSE:VALE) hit a new 52-week low on Friday . The company traded as low as $9.28 and last traded at $9.29, with a volume of 2049706 shares changing hands. The stock had previously closed at $9.47.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Morgan Stanley cut Vale from an “overweight” rating to an “equal weight” rating and reduced their price objective for the stock from $14.50 to $11.30 in a research note on Thursday. Wolfe Research downgraded shares of Vale from a “peer perform” rating to an “underperform” rating in a research report on Wednesday, October 9th. StockNews.com began coverage on shares of Vale in a research report on Friday. They set a “buy” rating for the company. Barclays cut their target price on shares of Vale from $16.00 to $15.25 and set an “overweight” rating on the stock in a report on Wednesday, December 4th. Finally, JPMorgan Chase & Co. lowered their target price on Vale from $16.50 to $15.00 and set an “overweight” rating for the company in a report on Monday, September 23rd. One analyst has rated the stock with a sell rating, six have issued a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, Vale presently has an average rating of “Hold” and a consensus target price of $14.38.

Vale Price Performance

The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.58 and a current ratio of 0.91. The business’s 50 day simple moving average is $10.37 and its 200-day simple moving average is $10.76. The stock has a market capitalization of $41.60 billion, a price-to-earnings ratio of 4.38, a price-to-earnings-growth ratio of 0.27 and a beta of 0.91.

Vale (NYSE:VALE) last posted its earnings results on Thursday, October 24th. The basic materials company reported $0.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.41 by $0.15. The firm had revenue of $9.55 billion during the quarter, compared to analyst estimates of $9.61 billion. Vale had a net margin of 22.59% and a return on equity of 21.07%. During the same period in the previous year, the business posted $0.66 EPS. Research analysts anticipate that Vale S.A. will post 2.08 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of VALE. Franklin Resources Inc. raised its holdings in shares of Vale by 1.2% in the 3rd quarter. Franklin Resources Inc. now owns 701,196 shares of the basic materials company’s stock worth $7,783,000 after purchasing an additional 8,489 shares in the last quarter. Tidal Investments LLC raised its holdings in shares of Vale by 13.2% during the third quarter. Tidal Investments LLC now owns 301,410 shares of the basic materials company’s stock valued at $3,520,000 after acquiring an additional 35,183 shares during the period. PVG Asset Management Corp acquired a new stake in shares of Vale during the third quarter valued at approximately $182,000. Wilmington Savings Fund Society FSB acquired a new stake in shares of Vale during the third quarter valued at approximately $79,000. Finally, World Investment Advisors LLC raised its holdings in shares of Vale by 89.7% during the third quarter. World Investment Advisors LLC now owns 19,376 shares of the basic materials company’s stock valued at $226,000 after acquiring an additional 9,161 shares during the period. 21.85% of the stock is owned by institutional investors and hedge funds.

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.