The board of directors of mining company Vale (Vale3) approved the repurchase of up to 500 million common shares. According to the material fact disclosed by the company, the program will be implemented over the next 18 months.
This means that Vale will withdraw around 10% of the number of outstanding shares from the market, according to the company’s current shareholding position.
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As a result, VALE3 shares rose 0.49% today, at R$82.57.
“This is good for the investor, because the company shows that the company’s management believes in the asset’s appreciation potential”, says William Teixeira, an analyst at the Messen brokerage. It is as if Vale believes so much in its actions that it invests in itself, he reflects.
Second, it is also positive because it creates asset purchase volume. “What in itself can add value to the action”, says Teixeira.
Yesterday, Vale reported that it had a net profit of R$ 23.046 billion in the first quarter of this year, a decrease compared to the same period in 2021, when the total was R$ 30.5 billion.
And is it good to buy shares in Vale? Check out the expert analysis below.
Messen recommends the purchase, with a target price of BRL 97.
Goldman Sachs prefers to stay neutral on this one. “Due to the relative preference for steel producers. But please note that our price target now implies a 19% increase after the stock was down 18% last month,” the company said in a report.
BTG maintains the buy recommendation. “The buyback program is well above market expectations,” analyzed the bank. “Investors were simply expecting a renewal of the current program, which was almost fully executed in just six months, with 168 million shares repurchased so far,” BTG reported.
