Argus Forecasts Strong Price Appreciation for Newmont (NYSE:NEM) Stock

Key Points

• Argus raised its price target for Newmont from $94 to $125 and kept a buy rating, implying about a 14.09% upside from the current share price.
• Analyst sentiment is broadly positive with a Moderate Buy consensus and a consensus target of $139.81 (2 Strong Buy, 16 Buy, 6 Hold), suggesting expectations above Argus's target.
• Newmont posted a strong quarter—EPS of $2.52 vs. $1.81 expected and revenue of $6.82B—and has a market cap near $118.3B (P/E ~17.1), though insiders have sold about $2.7M of stock in the last 90 days.

Newmont (NYSE:NEM - Get Free Report) had its target price hoisted by research analysts at Argus from $94.00 to $125.00 in a report issued on Thursday,MarketScreener reports. The brokerage presently has a "buy" rating on the basic materials company's stock. Argus' target price would suggest a potential upside of 14.09% from the stock's current price.

NEM has been the subject of a number of other reports. Zacks Research lowered shares of Newmont from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 3rd. BMO Capital Markets decreased their price objective on Newmont from $145.00 to $140.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Jefferies Financial Group lifted their target price on shares of Newmont from $162.00 to $165.00 and gave the stock a "buy" rating in a research report on Friday, April 10th. DZ Bank upgraded Newmont to a "strong-buy" rating in a report on Monday, January 19th. Finally, TD Cowen lowered their target price on Newmont from $118.00 to $116.00 and set a "hold" rating for the company in a research note on Tuesday. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Newmont currently has an average rating of "Moderate Buy" and a consensus target price of $139.81.

Newmont Stock Down 2.0%

Newmont stock traded down $2.28 during midday trading on Thursday, hitting $109.57. 680,330 shares of the stock were exchanged, compared to its average volume of 10,052,459. The company has a quick ratio of 2.02, a current ratio of 2.29 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $118.33 billion, a price-to-earnings ratio of 17.14, a price-to-earnings-growth ratio of 0.84 and a beta of 0.46. The business's 50-day moving average price is $114.89 and its 200-day moving average price is $104.40. Newmont has a 52-week low of $48.27 and a 52-week high of $134.88.

Newmont (NYSE:NEM - Get Free Report) last announced its quarterly earnings data on Thursday, February 19th. The basic materials company reported $2.52 EPS for the quarter, topping the consensus estimate of $1.81 by $0.71. Newmont had a net margin of 31.25% and a return on equity of 23.28%. The business had revenue of $6.82 billion for the quarter, compared to analyst estimates of $6.18 billion. During the same quarter in the previous year, the firm posted $1.40 earnings per share. The company's revenue for the quarter was up 20.6% on a year-over-year basis. On average, research analysts expect that Newmont will post 8.83 EPS for the current fiscal year.

Insider Transactions at Newmont

In related news, insider David James Fry sold 18,394 shares of the business's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $111.45, for a total transaction of $2,050,011.30. Following the completion of the transaction, the insider directly owned 17,147 shares in the company, valued at approximately $1,911,033.15. The trade was a 51.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Peter Toth sold 3,000 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $113.09, for a total transaction of $339,270.00. Following the completion of the transaction, the executive vice president owned 52,315 shares of the company's stock, valued at approximately $5,916,303.35. The trade was a 5.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 24,394 shares of company stock worth $2,713,281. Insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Newmont

Hedge funds have recently modified their holdings of the stock. Apella Capital LLC increased its stake in Newmont by 4.1% in the 4th quarter. Apella Capital LLC now owns 2,198 shares of the basic materials company's stock worth $219,000 after acquiring an additional 86 shares during the last quarter. New Wave Wealth Advisors LLC grew its holdings in Newmont by 1.3% during the 4th quarter. New Wave Wealth Advisors LLC now owns 6,849 shares of the basic materials company's stock valued at $684,000 after purchasing an additional 88 shares during the last quarter. Novem Group boosted its holdings in Newmont by 3.7% during the 4th quarter. Novem Group now owns 2,487 shares of the basic materials company's stock valued at $248,000 after acquiring an additional 88 shares during the period. Norden Group LLC boosted its stake in shares of Newmont by 0.7% during the fourth quarter. Norden Group LLC now owns 12,367 shares of the basic materials company's stock valued at $1,235,000 after purchasing an additional 90 shares during the period. Finally, Parkside Financial Bank & Trust boosted its position in Newmont by 1.4% in the 4th quarter. Parkside Financial Bank & Trust now owns 7,153 shares of the basic materials company's stock valued at $714,000 after buying an additional 96 shares during the period. Hedge funds and other institutional investors 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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