Vale (NYSE:VALE) Shares Gap Down on Disappointing Earnings

Shares of Vale S.A. (NYSE:VALE) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $16.91, but opened at $16.28. Vale shares last traded at $16.0450, with a volume of 13,458,137 shares traded.

The basic materials company reported $0.44 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.02). The company had revenue of $9.26 billion for the quarter, compared to analyst estimates of $9.33 billion. Vale had a return on equity of 20.16% and a net margin of 6.12%.

Wall Street Analyst Weigh In

Several research firms recently commented on VALE. The Goldman Sachs Group raised their price target on shares of Vale from $13.80 to $18.00 and gave the company a “buy” rating in a research report on Friday, January 30th. Zacks Research lowered shares of Vale from a “strong-buy” rating to a “hold” rating in a research note on Thursday, February 5th. Morgan Stanley raised their target price on Vale from $18.00 to $19.50 and gave the company an “overweight” rating in a research report on Thursday, April 9th. Barclays lifted their price target on Vale from $15.50 to $16.50 and gave the company an “overweight” rating in a research note on Monday, March 2nd. Finally, Wells Fargo & Company upped their price target on Vale from $15.50 to $17.00 and gave the stock an “equal weight” rating in a report on Wednesday, April 15th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $16.02.

Insider Transactions at Vale

In other Vale news, VP Sobrinho Sami Arap purchased 12,990 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The shares were purchased at an average cost of $16.11 per share, with a total value of $209,268.90. Following the completion of the purchase, the vice president owned 12,990 shares in the company, valued at approximately $209,268.90. This represents a ∞ increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, insider Parenti Grazielle Tallia bought 10,464 shares of the firm’s stock in a transaction on Wednesday, April 1st. The stock was acquired at an average cost of $16.11 per share, for a total transaction of $168,575.04. Following the completion of the purchase, the insider directly owned 10,464 shares in the company, valued at approximately $168,575.04. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Advisory Resource Group purchased a new stake in shares of Vale during the 3rd quarter valued at approximately $1,434,000. Ninety One North America Inc. lifted its stake in Vale by 35.6% during the 3rd quarter. Ninety One North America Inc. now owns 3,377,582 shares of the basic materials company’s stock worth $36,681,000 after acquiring an additional 886,214 shares in the last quarter. Campbell & CO Investment Adviser LLC boosted its stake in shares of Vale by 493.9% in the third quarter. Campbell & CO Investment Adviser LLC now owns 308,126 shares of the basic materials company’s stock valued at $3,346,000 after purchasing an additional 256,244 shares during the period. Aberdeen Group plc boosted its position in Vale by 2.4% in the 4th quarter. Aberdeen Group plc now owns 2,838,991 shares of the basic materials company’s stock valued at $36,992,000 after buying an additional 66,896 shares during the period. Finally, Robeco Institutional Asset Management B.V. boosted its holdings in Vale by 77.8% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 20,809,302 shares of the basic materials company’s stock valued at $271,145,000 after purchasing an additional 9,103,727 shares during the period. Hedge funds and other institutional investors own 21.85% of the company’s stock.

Vale Stock Performance

The company has a quick ratio of 0.78, a current ratio of 1.15 and a debt-to-equity ratio of 0.53. The firm has a market capitalization of $73.42 billion, a price-to-earnings ratio of 28.82 and a beta of 0.53. The stock has a 50-day moving average price of $16.19 and a 200 day moving average price of $14.45.

About Vale

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.