Rio Tinto Group [RIO] is 5.19% higher this YTD. Is it still time to buy?

Rio Tinto Group [NYSE: RIO] loss -0.70% on the last trading session, reaching $69.85 price per share at the time. The company report on November 30, 2022 that Rio Tinto progresses strategy to strengthen, decarbonise and grow.


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Rio Tinto is today providing an update at its Investor Seminar on progress against its long-term strategy to strengthen the business, grow in a decarbonising world and continue to deliver attractive shareholder returns.

Updates will include Rio Tinto’s market outlook, with the energy transition expected to add as much as 25% in new demand above traditional sources on a copper equivalent basis across the Group’s key products by 2035. Rio Tinto is targeting investment of up to $3 billion per year in growth to meet this demand, including the Oyu Tolgoi copper, Rincon lithium and Simandou iron ore projects.

Rio Tinto Group represents 1.62 billion in outstanding shares, while the company has a total market value of $112.90 billion with the latest information. RIO stock price has been found in the range of $69.405 to $70.27.

If compared to the average trading volume of 4.30M shares, RIO reached a trading volume of 3027365 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 $71.19 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.

Citigroup have made an estimate for Rio Tinto Group shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 02, 2022. The new note on the price target was released on August 24, 2022, 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 1.88. The Price to Book ratio for the last quarter was 2.24, with the Price to Cash per share for the same quarter was set at 8.61.

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 1.76. With this latest performance, RIO shares gained by 19.48% in over the last four-week period, additionally sinking by -8.68% over the last 6 months – not to mention a rise of 9.74% 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 70.10, with the RSI for the last a single of trading hit 72.85, and the three-weeks RSI is set at 66.74 for Rio Tinto Group [RIO]. The present Moving Average for the last 50 days of trading for this stock 59.78, while it was recorded at 69.73 for the last single week of trading, and 65.23 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 +44.89 and a Gross Margin at +48.84. Rio Tinto Group’s Net Margin is presently recorded at +33.22.

Return on Total Capital for RIO is now 41.51, given the latest momentum, and Return on Invested Capital for the company is 33.62. Return on Equity for this stock inclined to 42.37, with Return on Assets sitting at 20.84. When it comes to the capital structure of this company, Rio Tinto Group [RIO] has a Total Debt to Total Equity ratio set at 26.31. Additionally, RIO Total Debt to Total Capital is recorded at 20.83, with Total Debt to Total Assets ending up at 13.15. Long-Term Debt to Equity for the company is recorded at 24.10, with the Long-Term Debt to Total Capital now at 19.08.

Reflecting on the efficiency of the workforce at the company, Rio Tinto Group [RIO] managed to generate an average of $310,826 per employee. Receivables Turnover for the company is 19.28 with a Total Asset Turnover recorded at a value of 0.63.Rio Tinto Group’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.80.

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 -3.30%.

An analysis of insider ownership at Rio Tinto Group [RIO]

There are presently around $9,290 million, or 11.10% 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 14,152,710, which is approximately -4.676% of the company’s market cap and around 6.50% of the total institutional ownership; WELLINGTON MANAGEMENT GROUP LLP, holding 14,022,990 shares of the stock with an approximate value of $979.51 million in RIO stocks shares; and STATE FARM MUTUAL AUTOMOBILE INSURANCE CO, currently with $763.59 million in RIO stock with ownership of nearly 0% 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 315 institutional holders increased their position in Rio Tinto Group [NYSE:RIO] by around 24,822,186 shares. Additionally, 303 investors decreased positions by around 18,973,761 shares, while 109 investors held positions by with 89,203,533 shares. The mentioned changes placed institutional holdings at 132,999,480 shares, according to the latest SEC report filing. RIO stock had 72 new institutional investments in for a total of 10,668,166 shares, while 81 institutional investors sold positions of 4,438,443 shares during the same period.

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