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

Rio Tinto PLC (NYSE:RIO) was the target of some unusual options trading activity on Thursday. Investors purchased 1,248,427 call options on the stock. This represents an increase of approximately 17,817% compared to the average volume of 6,968 call options.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of RIO. Arrowstreet Capital Limited Partnership grew its holdings in shares of Rio Tinto by 170.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,886,335 shares of the mining company’s stock worth $311,023,000 after purchasing an additional 2,451,140 shares during the last quarter. Milford Funds Ltd. purchased a new position in Rio Tinto during the 4th quarter worth approximately $93,143,000. Deutsche Bank AG increased its position in Rio Tinto by 102.6% during the fourth quarter. Deutsche Bank AG now owns 2,216,935 shares of the mining company’s stock worth $177,421,000 after buying an additional 1,122,667 shares during the period. Natixis Advisors LLC lifted its stake in Rio Tinto by 144.7% in the fourth quarter. Natixis Advisors LLC now owns 1,587,387 shares of the mining company’s stock valued at $127,039,000 after buying an additional 938,687 shares during the last quarter. Finally, Marshall Wace LLP acquired a new stake in shares of Rio Tinto in the second quarter valued at approximately $49,089,000. 19.33% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on RIO. Argus upped their price objective on shares of Rio Tinto from $70.00 to $85.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Zacks Research raised shares of Rio Tinto from a “hold” rating to a “strong-buy” rating in a research note on Monday, December 29th. Royal Bank Of Canada restated a “sector perform” rating on shares of Rio Tinto in a report on Thursday, January 22nd. DZ Bank cut Rio Tinto from a “strong-buy” rating to a “hold” rating in a report on Friday, February 20th. Finally, Barclays lowered Rio Tinto from an “overweight” rating to an “equal weight” rating in a research report on Tuesday, February 24th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $85.00.

Rio Tinto Stock Down 3.0%

Shares of NYSE:RIO traded down $2.84 during mid-day trading on Thursday, reaching $93.41. 4,859,351 shares of the company were exchanged, compared to its average volume of 4,245,593. Rio Tinto has a 1 year low of $51.67 and a 1 year high of $101.53. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.98 and a current ratio of 1.44. The firm’s 50-day simple moving average is $90.82 and its 200 day simple moving average is $76.28.

Rio Tinto Announces Dividend

The firm also recently declared a dividend, which will be paid on Thursday, April 16th. Shareholders of record on Friday, March 6th will be given a $2.54 dividend. This represents a yield of 527.0%. The ex-dividend date of this dividend is Friday, March 6th.

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.