Capital International Inc. CA Reduced Holdings in Vale S.A. by Selling Over 860,000 Shares

Capital International Inc. CA has reduced its investment in Vale S.A. (NYSE:VALE), a leading basic materials company, by selling 860,135 shares during the second quarter. The transaction signified an 11.9% decrease in their holding, leaving Capital International with 6,372,837 shares. After the sell-off, Vale still represents 1.6% of Capital International's total investments, making it their 10th largest stock holding. The value of these shares is estimated at approximately $85.5 million.

Institutional Investors' Activity

Investment activity in Vale S.A. shares is a keen interest among various institutional investors. Guggenheim Capital LLC, for instance, increased its Vale S.A. position by 14.5% during the same quarter. Similarly, D.A. Davidson & CO. upped their stake by 33.7%, and PNC Financial Services Group Inc. saw a 10.9% increase in their holdings of Vale. Meanwhile, Northern Trust Corp added an impressive 192,691 shares, boosting their investment by 5.9%. Osaic Holdings Inc. also participated in the buying, marginally increasing their stake by 2.7%.

Analysts' Ratings and Projections

Financial analysts have recently updated their ratings and price targets for Vale S.A. Following various assessments, Citigroup has upgraded Vale from 'neutral' to 'buy' and increased its price target from $14.00 to $16.00. Similarly, the Royal Bank of Canada has given Vale an 'outperform' rating with a revised price target of $15.00. Bank of America has also promoted Vale to a 'buy' rating, setting a high price objective of $20.00. Overall, the average stock rating from MarketBeat suggests a 'Moderate Buy' with an average price target of $17.23.

Vale's Market Performance

Vale S.A.'s stock experienced a drop of 4.2% on a recent trading day, closing at $15.21. The company's market capitalization stands robust at $68.19 billion, with a PE ratio of 7.60. Vale has displayed a low and high share price of $12.22 and $19.31 over the past year, respectively. Currently, the company maintains a quick ratio of 0.70 and a debt-to-equity ratio of 0.39, indicating a stable financial posture.

Quarterly Earnings and Dividend Details

Vale reported a quarterly earnings-per-share of $0.66, exceeding analysts' predictions. The company's revenue reached $10.62 billion for the quarter, with a net margin of 22.84% and a return on equity of 23.82%. Vale has also announced a dividend to be issued on December 8th, at $0.1541 per share, representing an 8.6% dividend yield based on the current share price.

About Vale S.A.

Vale S.A. is a multinational corporation engaged in iron ore and pellet production crucial for the steelmaking industry. With operations primarily in Brazil, Vale also focuses on the production of manganese and other ferrous materials, along with logistic services related to these commodities.

CapitalInternational, Vale, Investment