Scotiabank Issues Pessimistic Forecast for Vale Earnings

Vale S.A. (NYSE:VALE) – Equities research analysts at Scotiabank reduced their FY2025 earnings estimates for shares of Vale in a research note issued to investors on Wednesday, January 8th. Scotiabank analyst A. Salazar now forecasts that the basic materials company will earn $2.36 per share for the year, down from their previous forecast of $2.55. Scotiabank has a “Sector Perform” rating and a $13.00 price objective on the stock. The consensus estimate for Vale’s current full-year earnings is $2.08 per share.

Vale (NYSE:VALE) last issued its quarterly earnings data on Thursday, October 24th. The basic materials company reported $0.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.15. Vale had a return on equity of 21.07% and a net margin of 22.59%. The company had revenue of $9.55 billion for the quarter, compared to the consensus estimate of $9.61 billion. During the same quarter last year, the business posted $0.66 earnings per share.

A number of other equities research analysts also recently weighed in on the stock. Morgan Stanley downgraded shares of Vale from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $14.50 to $11.30 in a research note on Thursday, December 12th. UBS Group cut shares of Vale from a “buy” rating to a “neutral” rating and lowered their price objective for the company from $14.00 to $11.50 in a research report on Monday, November 11th. Jefferies Financial Group cut their target price on shares of Vale from $14.00 to $11.00 and set a “buy” rating for the company in a research report on Monday. StockNews.com initiated coverage on Vale in a research report on Friday, December 13th. They set a “buy” rating on the stock. Finally, Wolfe Research upgraded Vale from an “underperform” rating to a “peer perform” rating in a report on Wednesday. Seven equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Vale presently has a consensus rating of “Hold” and an average target price of $13.89.

Vale Stock Performance

NYSE:VALE opened at $8.50 on Thursday. The stock has a market cap of $38.11 billion, a P/E ratio of 3.94, a PEG ratio of 0.27 and a beta of 0.92. The company has a quick ratio of 0.58, a current ratio of 0.91 and a debt-to-equity ratio of 0.39. The business’s 50-day moving average price is $9.60 and its two-hundred day moving average price is $10.39. Vale has a twelve month low of $8.42 and a twelve month high of $15.06.

Hedge Funds Weigh In On Vale

A number of large investors have recently bought and sold shares of VALE. Healthcare of Ontario Pension Plan Trust Fund boosted its stake in shares of Vale by 3,692.5% during the third quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 18,200,000 shares of the basic materials company’s stock valued at $212,576,000 after purchasing an additional 17,720,100 shares during the period. SPX Gestao de Recursos Ltda raised its holdings in Vale by 60.6% during the 2nd quarter. SPX Gestao de Recursos Ltda now owns 21,969,937 shares of the basic materials company’s stock valued at $245,404,000 after buying an additional 8,288,112 shares during the last quarter. Holocene Advisors LP purchased a new stake in Vale during the 3rd quarter valued at $80,300,000. Itau Unibanco Holding S.A. grew its holdings in Vale by 123.4% in the 3rd quarter. Itau Unibanco Holding S.A. now owns 12,059,814 shares of the basic materials company’s stock worth $140,859,000 after acquiring an additional 6,660,933 shares during the last quarter. Finally, Marshall Wace LLP increased its position in shares of Vale by 395.3% in the second quarter. Marshall Wace LLP now owns 7,152,069 shares of the basic materials company’s stock valued at $79,889,000 after acquiring an additional 5,707,969 shares during the period. 21.85% of the stock is owned by hedge funds and other institutional investors.

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.