Rio Tinto Group (RIO): Stock to Follow:

Rio Tinto Group (RIO):

In Friday trading session Rio Tinto Group (RIO) stock price ended at $62.78 by scoring a change of 1.16%. The recent trading activity revealed that the stock price is at 46.72% off from its 52-week low and traded with move of -0.27% from high printed in the last 52-week period. The Company kept 1090.7M Floating Shares and holds 1680.84M shares outstanding.

The company’s earnings per share shows growth of 54.00% for the current year and expected to arrive earnings growth for the next year at -13.67% . Analyst projected EPS growth for the next 5 years at-7.10%. The company’s EPS growth rate for past five years was 31.90%. The earnings growth rate for the next years is an important measure for investors planning to hold onto a stock for several years. The company’s earnings will usually have a direct relationship to the price of the company’s stock. The stock observed Sales growth of -4.60% during past 5 years. EPS growth quarter over quarter stands at 237.70% and Sales growth quarter over quarter is at 12.70%.

Shares price moved with -0.27% from its 50 Day high and distanced at 18.04% from 50 Day low. Analyses consensus rating score stands at 2.2. For the next one year period, the average of individual price target estimates referred by covering sell-side analysts is $62.87.

As took short look on profitability, the firm profit margin which was recorded 33.70%, and operating margin was noted at 43.40%. The Institutional ownership of the firm is 8.40% while Insiders ownership is 6.50%. Company has kept return on investment (ROI) at 23.70% over the previous 12 months and has been able to maintain return on asset (ROA) at 14.90% for the last twelve months. Return on equity (ROE) recorded at 31.50%.

Rio Tinto Group (RIO) stock recent traded volume stands with 1766221 shares as compared with its average volume of 3177.41K shares. The relative volume observed at 0.56.

Volume Interpretation:

Volume is simply the number of shares traded during a specified time frame (e.g., hour, day, week, month, etc). The analysis of volume is a basic yet very important element of technical analysis. Volume provides clues as to the intensity of a given price move. Low volume levels are characteristic of the indecisive expectations that typically occur during consolidation periods (i.e., periods where prices move sideways in a trading range). Low volume also often occurs during the indecisive period during market bottoms. High volume levels are characteristic of market tops when there is a strong consensus that prices will move higher. High volume levels are also very common at the beginning of new trends (i.e., when prices break out of a trading range). Just before market bottoms, volume will often increase due to panic-driven selling.

The current ratio of 1.9 is mainly used to give an idea of a company’s ability to pay back its liabilities (debt and accounts payable) with its assets (cash, marketable securities, inventory, accounts receivable). As such, current ratio can be used to make a rough estimate of a company’s financial health. The quick ratio of 1.6 is a measure of how well a company can meet its short-term financial liabilities with quick assets (cash and cash equivalents, short-term marketable securities, and accounts receivable). The higher the ratio, the more financially secure a company is in the short term. A common rule of thumb is that companies with a quick ratio of greater than 1.0 are sufficiently able to meet their short-term liabilities.

The long term debt/equity shows a value of 0.28 with a total debt/equity of 0.29. It gives the investors the idea on the company’s financial leverage, measured by apportioning total liabilities by its stockholders equity. It also illustrates how much debt the corporation is using to finance its assets in relation to the value represented in shareholders’ equity.

SMA and Trends:

Moving averages are valuable, as they smooth daily fluctuations, allowing the technical analyst to see the underlying trend without being distracted by the small (daily) movements. A rising moving average usually signals an uptrend, while a falling moving average indicates a downtrend.

Some analysts have adopted the following approach, when it comes to relating the SMA with a particular trend: If the close price of a tradable instrument is above some simple moving average, then the trend must be bullish. If the close price is below some simple moving average, then the trend must be bearish. However, choosing a period for trend estimation is a matter of personal preferences. The period of the SMA will depend on one’s trading style and time frame for trading. Thus, choosing the appropriate period comes with experimentation and, of course, experience. Despite that simple moving averages provide help when identifying a trend, they do so after the trend has begun. Therefore, moving averages are lagging indicators, as they are based on past prices.

Rio Tinto Group (RIO) stock moved higher 6.31% in contrast to its 20 day moving average displaying short-term an upside movement of stock. It shifted 10.74% up its 50-day simple moving average. This is showing medium-term bullish trend based on SMA 50. The stock price went above 24.98% from its 200-day simple moving average identifying long-term rising trend.

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