The Rio Tinto Limited (ASX: RIO) share price has continued to tumble over the past month followed by weak investor sentiment.
On Thursday, the mining giant’s shares sank a further 1.54% to close at $88.32. This means the company’s shares have lost about 9% in value during the last month.
What’s going on with Rio Tinto shares?
Investors have been heading for the exits, pushing the Rio Tinto share price to a new 52-week low.
The company released its third-quarter trading update in mid-October, revealing a soft performance and full-year guidance downgrade.
Rio Tinto acknowledged another difficult quarter operationally despite mostly improving key numbers against the prior quarter. Ongoing challenges caused by COVID-19 hampered the company’s production results.
In addition, Rio Tinto slightly reduced production targets on some of its key commodities for 2021.
The news sent Rio Tinto shares backtracking almost 1% on the day. While it may not seem much, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.69% higher to 7,362 points, the third strongest climb in the month.
The company is scheduled to report its fourth-quarter operations review on 18 January 2022.
What do the brokers think?
A number of brokers weighed in on Rio Tinto’s shares after the release of its latest performance report.
Analysts at Macquarie Group Ltd (ASX: MQG) cut their price target by 8.3% to $133.00 for the Rio Tinto share price. Swiss investment firm UBS had a more bearish tone, slashing its outlook by 6% to $79.00.
Credit Suisse also changed it assessment by lowering its rating by 3.6% to $106.00. It appears the broker is focused on Rio Tinto’s statement about its FY21 guidance.
Rio Tinto share price review
Over the past 12 months, the Rio Tinto share price has fallen around 4% and hit a 52-week low of $88.32 yesterday. When looking at 2021 alone, its shares have plummeted by more than 20% for the period.
Rio Tinto commands a market capitalisation of roughly $32.79 billion with approximately 371.22 million shares outstanding.
The post Why did the Rio Tinto (ASX:RIO) share price go backwards in October? appeared first on The Motley Fool Australia.
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More reading
- Here’s why the Rio Tinto (ASX:RIO) share price is down 23% so far in 2021
- Here’s why the Rio Tinto (ASX:RIO) share price is down 29% in the last 3 months
- Why did the Rio Tinto (ASX:RIO) share price climb today?
- Rio Tinto (ASX:RIO) share price threatens fresh year-to-date low
- ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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