Rio Tinto (NYSE:RIO) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Rio Tinto from “hold” to “strong sell,” while the broader analyst consensus remains “hold” with a $105.50 average price target.
• Rio Tinto shares rose 2.6% to $101.61, trading above their 50-day and 200-day moving averages; hedge funds and institutional investors own 19.33% of the stock.
• Potentially positive developments include interest in Rio Tinto’s reported $3 billion asset sale, while elevated put-option activity, labor concerns and the exclusion of its Bell Bay smelter from an Australian support program pose risks.

Rio Tinto (NYSE:RIO - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other equities analysts also recently weighed in on RIO. Sanford C. Bernstein raised their target price on shares of Rio Tinto from $82.00 to $83.50 and gave the company an "outperform" rating in a research note on Monday, April 27th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Rio Tinto in a research report on Friday, May 15th. Argus set a $120.00 price objective on Rio Tinto in a research report on Monday, April 27th. Morgan Stanley cut Rio Tinto from an "equal weight" rating to an "underweight" rating in a research note on Wednesday, July 8th. Finally, DZ Bank raised Rio Tinto from a "hold" rating to a "strong-buy" rating in a report on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $105.50.

Rio Tinto Trading Up 2.6%

NYSE:RIO opened at $101.61 on Tuesday. Rio Tinto has a one year low of $60.09 and a one year high of $112.58. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.42 and a quick ratio of 0.93. The company's 50-day simple moving average is $97.12 and its 200 day simple moving average is $96.52.

Hedge Funds Weigh In On Rio Tinto

Hedge funds have recently added to or reduced their stakes in the company. Cubist Systematic Strategies LLC purchased a new position in shares of Rio Tinto in the first quarter worth $84,000. AQR Capital Management LLC boosted its position in shares of Rio Tinto by 78.4% during the first quarter. AQR Capital Management LLC now owns 12,087 shares of the mining company's stock valued at $726,000 after buying an additional 5,310 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Rio Tinto by 20.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,485 shares of the mining company's stock worth $690,000 after buying an additional 1,968 shares in the last quarter. Empowered Funds LLC increased its holdings in Rio Tinto by 5.8% in the 1st quarter. Empowered Funds LLC now owns 5,280 shares of the mining company's stock worth $317,000 after buying an additional 288 shares in the last quarter. Finally, Focus Partners Wealth increased its holdings in Rio Tinto by 16.7% in the 1st quarter. Focus Partners Wealth now owns 15,985 shares of the mining company's stock worth $962,000 after buying an additional 2,285 shares in the last quarter. 19.33% of the stock is currently owned by hedge funds and other institutional investors.

More Rio Tinto News

Here are the key news stories impacting Rio Tinto this week:

• Positive Sentiment: Rio Tinto’s reported $3 billion asset sale has attracted interest from private-equity firms including Blackstone and KKR. A successful sale could generate cash, simplify the portfolio and support capital returns or debt reduction. Rio Tinto’s $3B asset sale lures private equity giants including Blackstone, KKR
• Positive Sentiment: European markets closed higher amid generally solid corporate earnings and easing geopolitical concerns, providing a supportive backdrop for large-cap miners such as Rio Tinto. European Stocks Close Higher Tuesday on Earnings Strength, Hormuz Talks
• Neutral Sentiment: Rio Tinto is reportedly unlikely to revive merger discussions with Glencore in the near term because of the existing standstill agreement. This removes near-term deal speculation while also reducing the risks associated with pursuing a major combination. Market Chatter: Rio Tinto Unlikely to Revisit Merger Talks With Glencore Soon
• Negative Sentiment: Investors purchased 7,236 Rio Tinto put options, roughly 85% above typical daily volume. The activity signals increased demand for downside protection or bearish positioning, although it does not necessarily predict a fundamental deterioration.
• Negative Sentiment: Rio Tinto’s Bell Bay aluminum smelter was reportedly excluded from Australia’s green-aluminum support program, potentially leaving the facility at a competitive disadvantage and increasing pressure on its economics. Rio Tinto’s Bell Bay Smelter Excluded from Australia’s Green Aluminum Support Scheme
• Negative Sentiment: Rio Tinto’s iron-ore leadership reportedly warned that a union membership drive could influence where future investment is allocated, highlighting potential labor-cost, operational and capital-allocation risks. Rio Tinto’s iron ore boss spells out why unions’ membership drive a reason to divert investment

Rio Tinto Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source