Are Smart Investors Making the Right Decision? Rio Tinto Group (RIO)

Rio Tinto Group (NYSE: RIO) stock fell -3.43% on Friday to $53.22 against a previous-day closing price of $55.11. With 3.82 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.55 million shares. During the session, the Other Industrial Metals & Mining company that operates in wider Basic Materials sector, reached to the highest price of $54.94 whereas the lowest price it dropped to was $53.22. The 52-week range on RIO shows that it touched its highest point at $84.01 and its lowest point at $53.21 during that stretch. It currently has a 1-year price target of $72.64. With its current market cap of 89.18 billion, RIO has annualized dividend of $6.84 while the current yield stands at 12.85%. Beta for the stock currently stands at 0.70.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RIO was down-trending over the past week, with a drop of -5.30%, but this was down by -9.69% over a month. Three-month performance dropped to -15.13% while six-month performance fell -30.40%. The stock lost -17.93% in the past year, while it has lost -19.86% so far this year. EPS is expected to decline by -3.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 38.40%.

Float and Shares Shorts:

At present, 1.62 billion RIO shares are outstanding with a float of 1.06 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 15.81 million, which was 0.98% higher than short shares on Jun 14, 2022. In addition to Mr. Jakob Stausholm M.S., MS as the firm’s CEO & Exec. Director, Mr. Peter Lloyd Cunningham B.A. serves as its CFO & Exec. Director.

Institutional Ownership:

Through their ownership of 10.63% of RIO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 6.61% of RIO, in contrast to 3.56% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in RIO with 1.19% of the stake, Fisher Asset Management LLC holds 14,846,876 shares worth 14,846,876. A second-largest stockholder of RIO, State Farm Investment Management, holds 10,931,820 shares, controlling over 0.88% of the firm’s shares. Arrowstreet Capital LP is the third largest shareholder in RIO, holding 10,037,170 shares or 0.80% stake. With a 0.83% stake in RIO, the Washington Mutual Investors Fund is the largest stakeholder. A total of 10,328,583 shares are owned by the mutual fund manager. The Franklin Income Fund, which owns about 0.41% of RIO stock, is the second-largest Mutual Fund holder. It holds 5,124,535 shares valued at 288.46 million. Neuberger Berman Large Cap Value holds 0.23% of the stake in RIO, owning 2,914,774 shares worth 164.07 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RIO since 8 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RIO analysts setting a high price target of $90.00 and a low target of $64.00, the average target price over the next 12 months is $75.66. Based on these targets, RIO could surge 69.11% to reach the target high and rise by 20.26% to reach the target low. Reaching the average price target will result in a growth of 42.16% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RIO will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $11.67 being high and $8.08 being low. For RIO, this leads to a yearly average estimate of $9.33. Based on analyst estimates, the high estimate for the next quarter is $3.91 and the low estimate is $3.91. The average estimate for the next quarter is thus $3.91.

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