What Does Analysts Really Think About Vale S.A. (VALE)?

Vale S.A. (VALE) will probably climb 21.55 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $20-month high price target. This represents a whopping 41.74 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $17, which represents a return potential of 20.48 percent when compared to the closing price of the stock of $14.11 on Friday, January 11. The lowest price target for the stock is $9.4 — slightly more than -33.38 percent from VALE’s current share price.

The stock is currently hovering around the first support level of $14.03. Below this, the next support is placed in the zone of $13.94. Till the time, the VALE stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.74 on daily chart, which may remain a cause for concern. If the price breaks below $13.94 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $14.22 mark may result into a pull-back move towards $14.33 level.

On 11th of January, Vale S.A. (NYSE:VALE) shares ended lower after a volatile session. The shares dropped -0.29 points or -2.01 percent at $14.11 with a light trade volume of 17.441 million shares. After opening the session at $14.22, the shares went as high as $14.25 and as low as $14.055, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $75.6 billion and now has 5.36 billion shares outstanding. Vale S.A. (VALE) stock has gained 8.46 percent of market value in 21 trading days.

VALE stock has a trailing 3-year beta of 1.33, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.81 a share in the trailing twelve months. The stock’s value has surged 6.97 percent year to date (YTD) against a rise of 11.01 percent in 12 month’s time. The company’s shares still trade -12.52 percent away from its 1-year high of $16.13 and 21 percent up from 52-week low of $11.66. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Vale S.A. (VALE) are trading at a P/E ratio of 16.66 times earnings reported for the past 12 months. The industry VALE operates in has an average P/E of 10.53. Its P/E ratio went as low as 7.31X and as high as 146.71 over the 5-year span. Further, it is sporting a 2.21 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.55. 38.4 percent is the gross profit margin for Vale S.A. and operating margin sits at 31 percent. Along with this, the net profit margin is 10.8 percent.

Let’s take a look at some insider activity at Vale S.A. (NYSE:VALE) and see the pattern.