Rio Tinto Group [NYSE: RIO] loss -0.35% or -0.24 points to close at $69.05 with a heavy trading volume of 3525786 shares. The company report on October 14, 2021 that Rio Tinto targets low-carbon steel production with new technology.
Rio Tinto is progressing an innovative new technology to deliver low-carbon steel, using sustainable biomass in place of coking coal in the steelmaking process, in a potentially cost-effective option to cut industry carbon emissions.
Over the past decade, Rio Tinto has developed a laboratory-proven process that combines the use of raw, sustainable biomass with microwave technology to convert iron ore to metallic iron during the steelmaking process. The patent-pending process, one of a number of avenues the company is pursuing to try to lower emissions in the steel value chain, is now being further tested in a small-scale pilot plant.
It opened the trading session at $68.19, the shares rose to $69.09 and dropped to $68.04, the range by which the price of stock traded the whole day. The daily chart for RIO points out that the company has recorded -15.77% loss over the past six months. However, it is still -28.7% lower than its most recent low trading price.
If we look at the average trading volume of 3.14M shares, RIO reached to a volume of 3525786 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying 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 $96.12 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 1.80. 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.
Exane BNP Paribas have made an estimate for Rio Tinto Group shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on October 06, 2021. The new note on the price target was released on July 29, 2021, representing the official price target for Rio Tinto Group stock.
The Average True Range (ATR) for Rio Tinto Group is set at 1.63, with the Price to Sales ratio for RIO stock in the period of the last 12 months amounting to 1.90. The Price to Book ratio for the last quarter was 2.11, with the Price to Cash per share for the same quarter was set at 10.55. Price to Free Cash Flow for RIO in the course of the last twelve months was 13.66 with Quick ratio for the last quarter at 1.80.
Trading performance analysis for RIO stock
Rio Tinto Group [RIO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.95. With this latest performance, RIO shares dropped by -5.02% in over the last four-week period, additionally sinking by -15.77% over the last 6 months – not to mention a rise of 16.74% 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 47.84, with the RSI for the last a single of trading hit 54.75, and the three-weeks RSI is set at 44.14 for Rio Tinto Group [RIO]. The present Moving Average for the last 50 days of trading for this stock 73.22, while it was recorded at 68.95 for the last single week of trading, and 81.25 for the last 200 days.
Rio Tinto Group [RIO]: A deeper dive into fundamental analysis
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 1.80 and a Current Ratio set at 2.10.
Rio Tinto Group [RIO]: An earnings per share (EPS) analysis
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 -4.50%.
An analysis of insider ownership at Rio Tinto Group [RIO]
There are presently around $6,966 million, or 8.60% 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 12,926,059, which is approximately 3.271% 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 $837.72 million in RIO stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $548.59 million in RIO stock with ownership of nearly 151.664% of the company’s market capitalization.
Positions in Rio Tinto Group stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 353 institutional holders increased their position in Rio Tinto Group [NYSE:RIO] by around 15,549,756 shares. Additionally, 203 investors decreased positions by around 13,977,750 shares, while 111 investors held positions by with 71,360,933 shares. The mentioned changes placed institutional holdings at 100,888,439 shares, according to the latest SEC report filing. RIO stock had 85 new institutional investments in for a total of 1,505,558 shares, while 65 institutional investors sold positions of 1,240,474 shares during the same period.