Rio Tinto (NYSE:RIO) Downgraded by Zacks Research to “Strong Sell”

Rio Tinto (NYSE:RIO) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday,Zacks.com reports.

Several other analysts have also commented on the company. Royal Bank Of Canada lowered Rio Tinto from a “sector perform” rating to an “underperform” rating in a report on Wednesday, June 3rd. Morgan Stanley downgraded Rio Tinto from an “equal weight” rating to an “underweight” rating in a report on Wednesday, July 8th. Bank of America cut Rio Tinto from a “buy” rating to a “neutral” rating in a research report on Friday, May 22nd. Citigroup restated a “neutral” rating on shares of Rio Tinto in a research note on Thursday, July 9th. Finally, Berenberg Bank set a $113.00 price target on shares of Rio Tinto in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $105.50.

Rio Tinto Stock Up 2.6%

Shares of RIO opened at $101.61 on Tuesday. The firm has a fifty day simple moving average of $97.12 and a two-hundred day simple moving average of $96.52. 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 has a 1-year low of $60.09 and a 1-year high of $112.58.

Hedge Funds Weigh In On Rio Tinto

Several institutional investors and hedge funds have recently bought and sold shares of RIO. Glen Eagle Advisors LLC increased its holdings in Rio Tinto by 32.2% in the 4th quarter. Glen Eagle Advisors LLC now owns 452 shares of the mining company’s stock valued at $36,000 after purchasing an additional 110 shares during the last quarter. Trust Point Inc. lifted its stake in Rio Tinto by 2.0% during the second quarter. Trust Point Inc. now owns 5,989 shares of the mining company’s stock worth $569,000 after purchasing an additional 118 shares in the last quarter. Americana Partners LLC lifted its stake in Rio Tinto by 0.8% during the fourth quarter. Americana Partners LLC now owns 16,108 shares of the mining company’s stock worth $1,289,000 after purchasing an additional 120 shares in the last quarter. Walker Asset Management LLC boosted its position in shares of Rio Tinto by 2.5% during the second quarter. Walker Asset Management LLC now owns 4,866 shares of the mining company’s stock worth $462,000 after buying an additional 120 shares during the period. Finally, Cary Street Partners Investment Advisory LLC boosted its position in shares of Rio Tinto by 19.1% during the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 772 shares of the mining company’s stock worth $62,000 after buying an additional 124 shares during the period. 19.33% of the stock is currently owned by hedge funds and other institutional investors.

Key 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

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.