Rio Tinto Group [RIO] is 10.79% higher this YTD. Is it still time to buy?

Rio Tinto Group [NYSE: RIO] closed the trading session at $82.48 on 07/08/21. The day’s price range saw the stock hit a low of $80.99, while the highest price level was $82.95. The company report on July 8, 2021 that Rio Tinto and POSCO sign climate MOU.

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Rio Tinto and POSCO, the largest steel producer in South Korea and one of the world’s leading steel producers, have signed a Memorandum of Understanding (MoU) to jointly explore, develop and demonstrate technologies to transition to a low-carbon emission steel value chain.

The partnership will explore a range of technologies for decarbonisation across the entire steel value chain from iron ore mining to steelmaking, including integrating Rio Tinto’s iron ore processing technology and POSCO’s steelmaking technology.

The stocks have a year to date performance of 10.79 percent and weekly performance of -1.68 percent. The stock has been moved at 0.64 percent over the last six months. The stock has performed -6.92 percent around the most recent 30 days and changed 2.84 percent over the most recent 3-months.

If compared to the average trading volume of 2.47M shares, RIO reached to a volume of 2242341 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 Rio Tinto Group [RIO]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RIO shares is $101.93 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RIO stock is a recommendation set at 1.60. 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.

UBS have made an estimate for Rio Tinto Group shares, keeping their opinion on the stock as Sell, with their previous recommendation back on June 21, 2021. The new note on the price target was released on March 31, 2021, representing the official price target for Rio Tinto Group stock.

The Average True Range (ATR) for Rio Tinto Group is set at 1.76, with the Price to Sales ratio for RIO stock in the period of the last 12 months amounting to 3.04. The Price to Book ratio for the last quarter was 2.84, with the Price to Cash per share for the same quarter was set at 8.05. Price to Free Cash Flow for RIO in the course of the last twelve months was 38.14 with Quick ratio for the last quarter at 1.50.

RIO stock trade performance evaluation

Rio Tinto Group [RIO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.68. With this latest performance, RIO shares dropped by -6.92% in over the last four-week period, additionally plugging by 0.64% over the last 6 months – not to mention a rise of 42.94% 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 RIO stock in for the last two-week period is set at 42.39, with the RSI for the last a single of trading hit 40.97, and the three-weeks RSI is set at 44.19 for Rio Tinto Group [RIO]. The present Moving Average for the last 50 days of trading for this stock 86.87, while it was recorded at 83.12 for the last single week of trading, and 77.30 for the last 200 days.

Rio Tinto Group [RIO]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Rio Tinto Group [RIO] shares currently have an operating margin of +38.10 and a Gross Margin at +40.98. Rio Tinto Group’s Net Margin is presently recorded at +21.90.

Return on Total Capital for RIO is now 28.54, given the latest momentum, and Return on Invested Capital for the company is 18.01. Return on Equity for this stock inclined to 23.43, with Return on Assets sitting at 11.08. When it comes to the capital structure of this company, Rio Tinto Group [RIO] has a Total Debt to Total Equity ratio set at 29.39. Additionally, RIO Total Debt to Total Capital is recorded at 22.72, with Total Debt to Total Assets ending up at 14.20. Long-Term Debt to Equity for the company is recorded at 28.15, with the Long-Term Debt to Total Capital now at 21.76.

Reflecting on the efficiency of the workforce at the company, Rio Tinto Group [RIO] managed to generate an average of $160,467 per employee. Receivables Turnover for the company is 14.82 with a Total Asset Turnover recorded at a value of 0.51.Rio Tinto Group’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.50 and a Current Ratio set at 1.80.

Earnings per share (EPS) analysis for Rio Tinto Group [RIO] stock

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 RIO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Rio Tinto Group go to -7.10%.

Rio Tinto Group [RIO]: Insider Ownership positions

There are presently around $8,203 million, or 8.30% of RIO stock, in the hands of institutional investors. The top three institutional holders of RIO stocks are: FISHER ASSET MANAGEMENT, LLC with ownership of 12,516,676, which is approximately 2.884% of the company’s market cap and around 6.50% of the total institutional ownership; STATE FARM MUTUAL AUTOMOBILE INSURANCE CO, holding 12,132,020 shares of the stock with an approximate value of $1.0 billion in RIO stocks shares; and FRANKLIN RESOURCES INC, currently with $708.7 million in RIO stock with ownership of nearly -18.257% of the company’s market capitalization.

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Positions in Rio Tinto Group stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 336 institutional holders increased their position in Rio Tinto Group [NYSE:RIO] by around 13,376,408 shares. Additionally, 195 investors decreased positions by around 7,918,393 shares, while 102 investors held positions by with 78,154,159 shares. The mentioned changes placed institutional holdings at 99,448,960 shares, according to the latest SEC report filing. RIO stock had 115 new institutional investments in for a total of 2,465,694 shares, while 54 institutional investors sold positions of 1,108,661 shares during the same period.

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