Shares of Newmont Corporation (NYSE:NEM – Get Free Report) shot up 1.5% on Tuesday . The stock traded as high as $114.68 and last traded at $114.4750. 7,852,433 shares changed hands during trading, a decline of 26% from the average session volume of 10,649,147 shares. The stock had previously closed at $112.83.
Newmont News Roundup
Here are the key news stories impacting Newmont this week:
- Positive Sentiment: Major analyst coverage tilts bullish — 22 firms covering Newmont show an average recommendation of “Buy” (majority buy/strong-buy), supporting investor demand for the stock. Newmont Corporation (NYSE:NEM) Given Average Rating of “Buy” by Brokerages
- Positive Sentiment: High-profile endorsement — Jim Cramer reiterated a favorable view of Newmont and the importance of owning gold, which can boost retail interest and short-term flows into the stock. Jim Cramer Discusses Newmont Corporation and the Importance of Owning Gold
- Neutral Sentiment: Insider sale disclosed — EVP Peter Toth sold 3,000 shares under a 10b5-1 plan (reported value ?$339k). As this was a planned sale program, it’s typically viewed as neutral but can create short-term headlines. Newmont EVP Peter Toth Sells 3,000 Shares Under 10b5-1 Plan
- Negative Sentiment: Short-term weakness vs. peers — Coverage notes Newmont underperformed peers on Monday, which may concern momentum traders and relative-value investors. Newmont Corp. stock underperforms Monday when compared to competitors
- Negative Sentiment: Recent intraday pullbacks — Multiple headlines report the stock recently slipped while the broader market gained, signaling near-term selling pressure that could reappear on negative macro or gold-price moves. Newmont Corporation (NEM) Stock Sinks As Market Gains: Here’s Why
Wall Street Analysts Forecast Growth
Several brokerages have weighed in on NEM. The Goldman Sachs Group increased their target price on shares of Newmont from $99.90 to $123.90 and gave the stock a “buy” rating in a research note on Monday, January 12th. Scotiabank lowered their price objective on shares of Newmont from $152.00 to $151.00 and set a “sector outperform” rating for the company in a research note on Friday, March 20th. Canadian Imperial Bank of Commerce lowered their price objective on shares of Newmont from $71.00 to $67.00 in a research note on Friday, February 27th. Royal Bank Of Canada raised their price objective on shares of Newmont from $120.00 to $125.00 and gave the company an “outperform” rating in a research note on Tuesday, February 3rd. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Newmont in a research note on Monday, December 29th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, Newmont has an average rating of “Moderate Buy” and an average target price of $133.78.
Newmont Trading Up 1.5%
The company’s 50 day moving average price is $115.86 and its 200 day moving average price is $101.91. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.29 and a quick ratio of 2.02. The firm has a market cap of $123.62 billion, a PE ratio of 17.91, a price-to-earnings-growth ratio of 0.88 and a beta of 0.46.
Newmont (NYSE:NEM – Get Free Report) last issued its earnings results on Thursday, February 19th. The basic materials company reported $2.52 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.71. The firm had revenue of $6.82 billion for the quarter, compared to analysts’ expectations of $6.18 billion. Newmont had a net margin of 31.25% and a return on equity of 23.28%. The firm’s revenue was up 20.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.40 earnings per share. As a group, analysts forecast that Newmont Corporation will post 3.45 EPS for the current fiscal year.
Newmont Increases Dividend
The company also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Tuesday, March 3rd were issued a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.9%. This is a positive change from Newmont’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Tuesday, March 3rd. Newmont’s dividend payout ratio is 16.28%.
Insider Activity at Newmont
In related news, insider David James Fry sold 18,394 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $111.45, for a total value of $2,050,011.30. Following the sale, the insider owned 17,147 shares of the company’s stock, valued at $1,911,033.15. This trade represents a 51.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Peter Toth sold 3,000 shares of the firm’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $113.09, for a total transaction of $339,270.00. Following the completion of the sale, the executive vice president directly owned 52,315 shares in the company, valued at approximately $5,916,303.35. This trade represents a 5.42% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 24,394 shares of company stock worth $2,713,281. 0.05% of the stock is owned by corporate insiders.
Institutional Trading of Newmont
Several hedge funds have recently added to or reduced their stakes in the company. Apella Capital LLC raised its holdings in Newmont by 4.1% during the fourth quarter. Apella Capital LLC now owns 2,198 shares of the basic materials company’s stock worth $219,000 after purchasing an additional 86 shares in the last quarter. New Wave Wealth Advisors LLC raised its holdings in Newmont by 1.3% during the fourth quarter. New Wave Wealth Advisors LLC now owns 6,849 shares of the basic materials company’s stock worth $684,000 after purchasing an additional 88 shares in the last quarter. Novem Group raised its holdings in Newmont by 3.7% during the fourth quarter. Novem Group now owns 2,487 shares of the basic materials company’s stock worth $248,000 after purchasing an additional 88 shares in the last quarter. Norden Group LLC raised its holdings in Newmont by 0.7% during the fourth quarter. Norden Group LLC now owns 12,367 shares of the basic materials company’s stock worth $1,235,000 after purchasing an additional 90 shares in the last quarter. Finally, Parkside Financial Bank & Trust raised its holdings in Newmont by 1.4% during the fourth quarter. Parkside Financial Bank & Trust now owns 7,153 shares of the basic materials company’s stock worth $714,000 after purchasing an additional 96 shares in the last quarter. Institutional investors and hedge funds own 68.85% of the company’s stock.
Newmont Company Profile
Newmont Corporation (NYSE: NEM) is a leading global gold mining company engaged in the exploration, development, processing and reclamation of gold properties. The company’s core business centers on the production of gold, with additional byproduct metals produced from its operations. Newmont operates a portfolio of long?lived mines and development projects, and its activities span the full mine life cycle from early-stage exploration through to mining, milling and closure.
Founded in 1921 and headquartered in Greenwood Village, Colorado, Newmont has grown through organic development and strategic acquisitions.
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