Vale (VALE) shares are on track to snap six straight sessions of losses, as the stock fell 1.9% at $17.20 in afternoon trading on Thursday.
The Brazilian miner gained about 10% in the preceding six sessions. Overall, the stock rose over 30% so far this year, compared to the 1.4% rise in the broader S&P 500 Index.
Vale is up nearly 8% over the past one month. The stock closed 2.9% higher on Wednesday at $17.53.
The company, in February, reported that its fourth-quarter net loss widened year-on-year, citing an impairment of nickel assets in Canada
Looking at Seeking Alpha’s Quant Rating, VALE has a Strong Buy rating with a score of 4.95 out of 5. The company received A+ in the prospect of profitability, while it got a C- in the growth factor.
Turning to the Wall Street community, 15 analysts gave VALE a Buy and above, 10 analysts have given the stock a Hold recommendation, and no one recommended Sell or lower.
Seeking Alpha analysts are also cautious and see the stock as a Hold.
“Given Vale’s high sensitivity to iron ore prices, the stock is likely to revert to a more typical correlation once Brazil’s macro impulse fades…Therefore, I decided to prune my position accordingly after the recent rally, downgrading VALE to a Hold, as risk-reward now appears balanced rather than asymmetric,” said Seeking Alpha analyst Bernard Zambonin.
Earlier in the month, Vale agreed to sell most of its stake in the Thompson Nickel Belt venture in Manitoba to Exiro Minerals, Orion Resources Partners, and Canada Growth Fund as part of a strategic review of its base metals business.