Rio Tinto Sees Unusually Large Options Volume (NYSE:RIO)

Key Points

• Put-option activity surged: Investors bought 7,236 Rio Tinto put options, 85% above the average volume of 3,911 contracts.
• Shares rose 2.1% to $101.11 on Wednesday, while the stock remained below its one-year high of $112.58.
• Analyst sentiment is mixed, with Rio Tinto holding a consensus “Hold” rating and an average price target of $105.50. Institutional investors own 19.33% of the company.

Rio Tinto PLC (NYSE:RIO - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock investors bought 7,236 put options on the company. This is an increase of 85% compared to the average volume of 3,911 put options.

Hedge Funds Weigh In On Rio Tinto

A number of hedge funds have recently made changes to their positions in RIO. Cubist Systematic Strategies LLC purchased a new stake in shares of Rio Tinto during the 1st quarter worth approximately $84,000. AQR Capital Management LLC grew its holdings in shares of Rio Tinto by 78.4% in the first quarter. AQR Capital Management LLC now owns 12,087 shares of the mining company's stock valued at $726,000 after purchasing an additional 5,310 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Rio Tinto by 20.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,485 shares of the mining company's stock valued at $690,000 after purchasing an additional 1,968 shares in the last quarter. Empowered Funds LLC increased its position in Rio Tinto by 5.8% in the first quarter. Empowered Funds LLC now owns 5,280 shares of the mining company's stock worth $317,000 after purchasing an additional 288 shares during the last quarter. Finally, Focus Partners Wealth increased its position in Rio Tinto by 16.7% in the first quarter. Focus Partners Wealth now owns 15,985 shares of the mining company's stock worth $962,000 after purchasing an additional 2,285 shares during the last quarter. Institutional investors own 19.33% of the company's stock.

Rio Tinto Trading Up 2.1%

RIO traded up $2.10 during trading on Wednesday, hitting $101.11. The company's stock had a trading volume of 772,675 shares, compared to its average volume of 3,193,401. The business's 50 day simple moving average is $97.21 and its 200-day simple moving average is $96.41. Rio Tinto has a one year low of $60.09 and a one year high of $112.58. 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 Dividend Announcement

The company also recently disclosed a dividend, which will be paid on Thursday, September 24th. Stockholders of record on Friday, August 14th will be given a dividend of $2.11 per share. This represents a dividend yield of 438.0%. The ex-dividend date is Friday, August 14th.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on RIO. DZ Bank raised shares of Rio Tinto from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 29th. Zacks Research cut shares of Rio Tinto from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 7th. The Goldman Sachs Group raised shares of Rio Tinto from a "neutral" rating to a "buy" rating in a report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Rio Tinto in a research note on Friday, May 15th. Finally, Morgan Stanley cut shares of Rio Tinto from an "equal weight" rating to an "underweight" rating in a report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Rio Tinto currently has an average rating of "Hold" and a consensus price target of $105.50.

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.

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