Stock Traders Buy High Volume of Call Options on Rio Tinto (NYSE:RIO)

Rio Tinto PLC (NYSE:RIO) saw some unusual options trading activity on Thursday. Stock traders acquired 102,090 call options on the company. This is an increase of 2,544% compared to the typical daily volume of 3,861 call options.

Rio Tinto Price Performance

RIO stock traded down $2.56 during trading on Friday, hitting $95.64. 2,187,739 shares of the company traded hands, compared to its average volume of 2,544,611. Rio Tinto has a 1 year low of $60.22 and a 1 year high of $112.58. The stock’s 50-day simple moving average is $96.14 and its 200 day simple moving average is $97.07. 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 Announces Dividend

The business 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. The ex-dividend date of this dividend is Friday, August 14th. This represents a dividend yield of 441.0%.

Key Rio Tinto News

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

• Positive Sentiment: Tomago smelter receives long-term support: Australia and New South Wales agreed to provide approximately A$2.5 billion in support to help keep Rio Tinto’s Tomago aluminium smelter operating beyond 2028. The arrangement includes more reliable, competitively priced electricity through 2038 and reduces the risk of a forced closure or costly restructuring. Australia commits $1.76 billion to keep Rio Tinto aluminium smelter open
• Positive Sentiment: Major investment and renewable-power agreement: Tomago Aluminium committed A$1.1 billion of investment, with the smelter expected to transition to 100% renewable electricity by 2033. Securing power through 2038 supports long-term aluminium production, regional employment and asset utilization, although Rio Tinto will still be exposed to aluminium prices and execution costs. Rio Tinto-Backed Tomago Smelter Secures Power Deal Through 2038
• Positive Sentiment: Bullish earnings outlook: Erste Group Bank predicted stronger earnings for Rio Tinto, offering a positive fundamental signal for investors. Erste Group Bank Predicts Stronger Earnings for Rio Tinto
• Neutral Sentiment: Unusually high call-option activity: Traders purchased 102,090 Rio Tinto call options, roughly 25 times the typical daily volume. This indicates speculative bullish positioning, but options activity alone does not guarantee sustained buying in the shares.
• Negative Sentiment: Mining-sector weakness pressured sentiment: Rio Tinto was among miners leading a broader UK market decline. The sector-wide selling likely explains why the stock decreased despite the favorable Tomago agreement and constructive earnings expectations. FTSE 100 Live: UK stocks head lower led by mining sector sell-off

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on RIO. Zacks Research lowered shares of Rio Tinto from a “hold” rating to a “strong sell” rating in a research report on Tuesday, August 4th. Citigroup restated a “neutral” rating on shares of Rio Tinto in a research report on Thursday, July 9th. Argus set a $120.00 price objective on Rio Tinto in a research report on Monday, April 27th. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Rio Tinto in a report on Friday, May 15th. Finally, Berenberg Bank set a $113.00 price target on shares of Rio Tinto in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $105.50.

Institutional Trading of Rio Tinto

Several institutional investors have recently modified their holdings of RIO. AdvisorNet Financial Inc increased its holdings in Rio Tinto by 160.2% in the first quarter. AdvisorNet Financial Inc now owns 294 shares of the mining company’s stock valued at $27,000 after buying an additional 181 shares in the last quarter. Nvest Wealth Strategies Inc. purchased a new position in Rio Tinto in the 4th quarter valued at approximately $28,000. Evelyn Partners Investment Management LLP purchased a new stake in Rio Tinto during the fourth quarter worth $34,000. V Square Quantitative Management LLC purchased a new stake in Rio Tinto during the first quarter worth $35,000. Finally, Glen Eagle Advisors LLC grew its holdings in Rio Tinto by 32.2% in the fourth 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. Hedge funds and other institutional investors own 19.33% of the company’s stock.

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.