Traders Purchase Large Volume of Put Options on Rio Tinto (NYSE:RIO)

Key Points

• Unusual options activity: Investors purchased 6,606 put options on Rio Tinto, about 48% above the typical daily volume of 4,469 contracts.
• Analyst consensus remains cautious: Rio Tinto has a consensus “Hold” rating and an average price target of $101.62, with most analysts rating the stock Hold or Buy.
• Shares traded below recent averages: Rio Tinto rose $1.89 to $85.61, while its 50-day and 200-day moving averages were approximately $96.82 and $96.23, respectively. Institutional investors own 19.33% of the company.

Rio Tinto PLC (NYSE:RIO - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Investors acquired 6,606 put options on the company. This is an increase of approximately 48% compared to the typical daily volume of 4,469 put options.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on RIO. JPMorgan Chase & Co. reaffirmed a "neutral" rating on shares of Rio Tinto in a research report on Thursday, July 30th. Weiss Ratings upgraded Rio Tinto from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, July 30th. Berenberg Bank reiterated a "buy" rating on shares of Rio Tinto in a research note on Wednesday, September 30th. Citigroup reiterated a "neutral" rating on shares of Rio Tinto in a research report on Tuesday, October 13th. Finally, Deutsche Bank Aktiengesellschaft reissued a "neutral" rating on shares of Rio Tinto in a research report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $101.62.

Institutional Investors Weigh In On Rio Tinto

Several institutional investors have recently made changes to their positions in RIO. Tidal Investments LLC grew its stake in Rio Tinto by 17.9% during the second quarter. Tidal Investments LLC now owns 115,936 shares of the mining company's stock valued at $11,006,000 after acquiring an additional 17,597 shares in the last quarter. TD Waterhouse Canada Inc. raised its holdings in shares of Rio Tinto by 43.2% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 100,630 shares of the mining company's stock valued at $9,403,000 after buying an additional 30,373 shares in the last quarter. Engineers Gate Manager LP purchased a new stake in Rio Tinto during the second quarter valued at about $3,957,000. Cidel Asset Management Inc. increased its stake in Rio Tinto by 101.1% in the 2nd quarter. Cidel Asset Management Inc. now owns 241,718 shares of the mining company's stock worth $22,946,000 after purchasing an additional 121,537 shares during the period. Finally, Dynamic Advisor Solutions LLC purchased a new position in shares of Rio Tinto in the second quarter worth $3,364,000. Hedge funds and other institutional investors own 19.33% of the company's stock.

Rio Tinto Stock Performance

NYSE:RIO traded up $1.89 during trading on Tuesday, reaching $85.61. The company's stock had a trading volume of 1,018,139 shares, compared to its average volume of 2,903,796. The company has a quick ratio of 0.93, a current ratio of 1.42 and a debt-to-equity ratio of 0.29. Rio Tinto has a 12 month low of $67.74 and a 12 month high of $112.58. The firm has a 50 day moving average of $96.82 and a 200-day moving average of $96.23.

Rio Tinto Announces Dividend

The company also recently disclosed a dividend, which was paid on Thursday, September 24th. Shareholders of record on Friday, August 14th were issued a dividend of $2.11 per share. This represents a yield of 441.0%. The ex-dividend date of this dividend was Friday, August 14th.

Rio Tinto Company Profile

Rio Tinto plc is a diversified mining and metals company with operations and projects spanning multiple continents. Its principal products include iron ore, aluminum, copper, lithium, borates and titanium dioxide, which are supplied to customers in the steel, construction, automotive, technology and manufacturing industries.

The company explores for, mines, processes and transports mineral resources, while also operating related infrastructure such as railways, ports, smelters and processing facilities.

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