Erste Group Bank Lowers Earnings Estimates for Rio Tinto

Key Points

• Erste Group Bank lowered Rio Tinto’s FY2026 EPS estimate to $8.30 from $8.36, below the $8.42 consensus forecast, while maintaining a “Hold” rating.
• Analyst sentiment remains mixed but averages a “Hold” rating, with an average price target of $101.62; several firms recently upgraded the stock, including Goldman Sachs and Argus.
• Rio Tinto shares opened at $102.48, while institutional investors and hedge funds own approximately 19.33% of the stock.

Rio Tinto PLC (NYSE:RIO - Free Report) - Equities research analysts at Erste Group Bank decreased their FY2026 EPS estimates for Rio Tinto in a research note issued on Thursday, August 27th. Erste Group Bank analyst S. Lingnau now anticipates that the mining company will earn $8.30 per share for the year, down from their prior forecast of $8.36. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Rio Tinto's current full-year earnings is $8.42 per share.

Several other brokerages have also commented on RIO. Weiss Ratings upgraded shares of Rio Tinto from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, July 30th. The Goldman Sachs Group upgraded shares of Rio Tinto from a "neutral" rating to a "buy" rating in a report on Wednesday, July 29th. Argus upgraded Rio Tinto to a "strong-buy" rating in a research note on Thursday, August 20th. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Rio Tinto in a research report on Friday, May 15th. Finally, Citigroup reaffirmed a "neutral" rating on shares of Rio Tinto in a research note on Thursday, July 9th. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $101.62.

Rio Tinto Price Performance

Shares of RIO opened at $102.48 on Tuesday. The firm has a 50-day simple moving average of $96.23 and a two-hundred day simple moving average of $97.77. Rio Tinto has a 1-year low of $61.40 and a 1-year high of $112.58. The company has a current ratio of 1.42, a quick ratio of 0.93 and a debt-to-equity ratio of 0.29.

Rio Tinto Announces Dividend

The firm also recently disclosed a dividend, which will be paid on Thursday, September 24th. Investors of record on Friday, August 14th will be issued a $2.11 dividend. The ex-dividend date is Friday, August 14th. This represents a dividend yield of 441.0%.

Institutional Investors Weigh In On Rio Tinto

A number of hedge funds have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership grew its stake in shares of Rio Tinto by 170.8% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,886,335 shares of the mining company's stock worth $311,023,000 after acquiring an additional 2,451,140 shares in the last quarter. Milford Funds Ltd. acquired a new stake in shares of Rio Tinto in the fourth quarter valued at $93,143,000. Altshuler Shaham Ltd purchased a new position in Rio Tinto in the first quarter valued at $106,724,000. Deutsche Bank AG boosted its holdings in Rio Tinto by 102.6% in the fourth quarter. Deutsche Bank AG now owns 2,216,935 shares of the mining company's stock valued at $177,421,000 after purchasing an additional 1,122,667 shares during the period. Finally, Natixis Advisors LLC grew its stake in Rio Tinto by 144.7% during the 4th quarter. Natixis Advisors LLC now owns 1,587,387 shares of the mining company's stock worth $127,039,000 after purchasing an additional 938,687 shares in the last quarter. 19.33% of the stock is currently owned by institutional investors and hedge funds.

About Rio Tinto

Rio Tinto is a global mining and metals company that explores for, mines, processes and markets a wide range of commodities. Its principal products include iron ore, aluminum, copper, diamonds and various other minerals and industrial materials. The company's activities span the full value chain from exploration and project development to mining, processing, smelting and refining, supplying raw materials to industries such as steelmaking, automotive, packaging, electronics and construction.

The origins of Rio Tinto date back to mining operations in the Rio Tinto region of Spain in the 19th century, and the group has since grown into a multinational enterprise.

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