Rio Tinto Ltd (ASX: RIO) shares are down 0.48% late Wednesday afternoon to $112.92 apiece.
Two weeks ago, the iron ore giant was trading above $120, so there’s been a 6.5% dip over this period.
It’s interesting to note that newly-installed Rio Tinto director Susan Lloyd-Hurwitz is buying now.
A notice lodged with the ASX reveals Lloyd-Hurwitz spent almost $50,000 buying an initial parcel of Rio Tinto shares last Thursday.
The independent non-executive director bought 436 shares on-market for $114.52 per share.
Why is this director purchasing Rio Tinto shares now?
Lloyd-Hurwitz may or may not have deliberately bought the dip here.
Buying the dip is a strategy employed by investors who want to take out a new position or do some dollar-cost averaging on their current position by purchasing shares when they’re ‘on sale’, so to speak.
She may have purchased her Rio Tinto stock because it was simply time to take a stake.
As a new director, it’s obviously not a good look to remain uninvested.
She was appointed to the board on 1 June and did not own Rio Tinto shares at that time.
Lloyd-Hurwitz recently retired as CEO of Mirvac Group (ASX: MGR) after 10 years at the helm.
She is also a director of ASX 200 bank Macquarie Group Ltd (ASX: MQG).
Rio Tinto shares may be falling today, in part, due to weak economic data out of China.
New figures reveal the first fall in consumer prices in China since February 2021.
