Is Rio Tinto plc a Buy? The Stock Gapped Up Today

 Is Rio Tinto plc a Buy? The Stock Gapped Up Today

The stock of Rio Tinto plc (LON:RIO) gapped up by GBX 37.5 today and has GBX 3334.48 target or 9.00% above today’s GBX 3059.16 share price. The 5 months technical chart setup indicates low risk for the GBX 57.52 billion company. The gap was reported on Nov, 22 by Barchart.com. If the GBX 3334.48 price target is reached, the company will be worth GBX 5.18 billion more.
Gaps up are useful for using as a support level and to some extent as a tradeable event. If investors already hold the stock and experience a price gap up, then its usually a good idea to hold the stock for a stronger up move. Back-tests of these patterns indicate that two-thirds of the times the stock performance improves after the gap. The area gaps close 89% of the time, the breakaway gaps, 2%, the continuation gaps 4% and the exhaustion gaps 61%. The stock increased 3.02% or GBX 89.66 on November 22, hitting GBX 3059.16. About 4.76M shares traded hands. Rio Tinto plc (LON:RIO) has risen 37.34% since April 25, 2016 and is uptrending. It has outperformed by 32.79% the S&P500.

Rio Tinto plc (LON:RIO) Ratings Coverage

Out of 29 analysts covering Rio Tinto PLC (LON:RIO), 19 rate it a “Buy”, 3 “Sell”, while 7 “Hold”. This means 66% are positive. GBX 4000 is the highest target while GBX 3 is the lowest. The GBX 2728.04 average target is -10.82% below today’s (GBX 3059.16) stock price. Rio Tinto PLC has been the topic of 363 analyst reports since July 23, 2015 according to StockzIntelligence Inc. The rating was maintained by Credit Suisse on Friday, July 29 with “Neutral”. Macquarie Research maintained Rio Tinto plc (LON:RIO) on Monday, October 24 with “Outperform” rating. Macquarie Research maintained the shares of RIO in a report on Thursday, October 1 with “Outperform” rating. J.P. Morgan maintained the shares of RIO in a report on Wednesday, December 9 with “Overweight” rating. The firm has “Sell” rating by Liberum Capital given on Friday, March 11. The rating was maintained by Macquarie Research on Monday, October 17 with “Outperform”. The firm earned “Neutral” rating on Tuesday, February 9 by BNP Paribas. Macquarie Research maintained Rio Tinto plc (LON:RIO) rating on Monday, November 14. Macquarie Research has “Outperform” rating and GBX 3700 price target. The stock of Rio Tinto plc (LON:RIO) has “Neutral” rating given on Friday, September 18 by BNP Paribas. The firm earned “Neutral” rating on Thursday, November 5 by Credit Suisse.

More recent Rio Tinto plc (LON:RIO) news were published by: Wsj.com which released: “Rio Tinto’s West African Bet Comes Back to Haunt It” on November 17, 2016. Also Wsj.com published the news titled: “Rio Tinto Executive Suspended, Another Steps Down Amid Payments Probe” on November 09, 2016. Prnewswire.com‘s news article titled: “SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Announces Investigation …” with publication date: November 16, 2016 was also an interesting one.

Rio Tinto plc is a mining company. The Firm focuses on finding, mining, processing and marketing the Earth’s mineral resources. The company has a market cap of 57.52 billion GBP. The Company’s divisions include aluminum, copper and coal, diamonds and minerals, and iron ore. It has a 1482.15 P/E ratio. The Company’s aluminum business includes bauxite mines, alumina refineries and aluminum smelters.

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