Goldman slashes price target on Vale S.A. ADR [VALE] – find out why.

Vale S.A. ADR [NYSE: VALE] closed the trading session at $11.96. The company report on February 26, 2024 at 5:19 AM that Vale Base Metals Finalizes Plans to Reduce Equity Interest in PT Vale Indonesia Tbk.

Vale Base Metals (“VBM”) informs that Vale Canada Limited (“VCL”) signed a Definitive Agreement (“Agreement”) with PT Mineral Industri Indonesia (“MIND ID”) and Sumitomo Metal Mining Co., Ltd. (“SMM”) regarding the divestment obligation of PT Vale Indonesia Tbk (“PT Vale”). Under the Agreement, VCL and SMM will divest approximately 14 per cent pro-rata combined equity interest in PT Vale to MIND ID.

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Upon completion of the transaction, MIND ID will hold approximately 34 per cent of PT Vale’s issued shares, making it the largest shareholder in the company. VCL and SMM will hold 33.9 per cent and 11.5 per cent, respectively. Approximately 20.6 per cent will continue to be held by the public on the Indonesia Stock Exchange.

The stocks have a year to date performance of -24.59 percent and weekly performance of -9.33 percent. The stock has been moved at -16.12 percent over the last six months. The stock has performed -9.74 percent around the most recent 30 days and changed -19.41 percent over the most recent 3-months.

If compared to the average trading volume of 24.07M shares, VALE reached to a volume of 29391386 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Vale S.A. ADR [VALE]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VALE shares is $17.46 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VALE stock is a recommendation set at 1.78. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Goldman have made an estimate for Vale S.A. ADR shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 21, 2023. The new note on the price target was released on November 20, 2023, representing the official price target for Vale S.A. ADR stock. Previously, the target price had yet another drop from $18 to $17, while Deutsche Bank kept a Hold rating on VALE stock. On October 30, 2023, analysts increased their price target for VALE shares from 14 to 16.

The Average True Range (ATR) for Vale S.A. ADR is set at 0.30, with the Price to Sales ratio for VALE stock in the period of the last 12 months amounting to 1.23. The Price to Book ratio for the last quarter was 1.31, with the Price to Cash per share for the same quarter was set at 0.99. Price to Free Cash Flow for VALE in the course of the last twelve months was 6.99 with Quick ratio for the last quarter at 0.96.

VALE stock trade performance evaluation

Vale S.A. ADR [VALE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.33. With this latest performance, VALE shares dropped by -9.74% in over the last four-week period, additionally sinking by -16.12% over the last 6 months – not to mention a drop of -19.31% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for VALE stock in for the last two-week period is set at 27.61, with the RSI for the last a single of trading hit 22.10, and the three-weeks RSI is set at 31.40 for Vale S.A. ADR [VALE]. The present Moving Average for the last 50 days of trading for this stock 13.65, while it was recorded at 12.28 for the last single week of trading, and 13.89 for the last 200 days.

Vale S.A. ADR [VALE]: An insightful look at the core fundamentals

Vale S.A. ADR’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.96 and a Current Ratio set at 1.28.

Earnings per share (EPS) analysis for Vale S.A. ADR [VALE] stock

With the latest financial reports released by the company, Vale S.A. ADR posted 0.41/share EPS, while the average EPS was predicted by analysts to be reported at 0.52/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -21.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for VALE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Vale S.A. ADR go to -12.84%.

Vale S.A. ADR [VALE]: Institutional Ownership

The top three institutional holders of VALE stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in VALE stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in VALE stock with ownership which is approximately 5.8325%.