Arrowstreet Capital Limited Partnership Acquires 2,146,905 Shares of Newmont Corporation $NEM

Key Points

• Arrowstreet Capital increased its stake in Newmont by 106.9% in Q3, buying an additional 2,146,905 shares to hold 4,155,210 shares (about 0.38% of the company) valued at roughly $349.3 million.
• Newmont reported strong quarterly results, beating EPS estimates with $2.52 vs. $1.81 expected and revenue of $6.82 billion (up 20.6% year-over-year), with a net margin of 31.25%.
• Wall Street sentiment is broadly positive with multiple price-target upgrades and an average rating of Buy (average target $134.15), and the company raised its quarterly dividend to $0.26 ($1.04 annualized, ~0.9% yield).

Arrowstreet Capital Limited Partnership grew its stake in Newmont Corporation (NYSE:NEM - Free Report) by 106.9% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 4,155,210 shares of the basic materials company's stock after purchasing an additional 2,146,905 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.38% of Newmont worth $349,288,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in the company. Seven Mile Advisory purchased a new stake in Newmont in the third quarter worth $401,000. Employees Retirement System of Texas lifted its position in Newmont by 7.3% during the third quarter. Employees Retirement System of Texas now owns 1,125,518 shares of the basic materials company's stock valued at $94,892,000 after buying an additional 76,399 shares during the period. Sei Investments Co. boosted its holdings in shares of Newmont by 35.3% during the 3rd quarter. Sei Investments Co. now owns 868,395 shares of the basic materials company's stock valued at $73,213,000 after buying an additional 226,617 shares in the last quarter. BOKF NA grew its position in shares of Newmont by 0.3% in the 3rd quarter. BOKF NA now owns 45,897 shares of the basic materials company's stock worth $3,870,000 after buying an additional 148 shares during the period. Finally, Blue Whale Capital LLP purchased a new stake in shares of Newmont in the 3rd quarter worth about $34,965,000. Institutional investors own 68.85% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Citigroup lifted their price target on shares of Newmont from $118.00 to $150.00 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. Jefferies Financial Group upped their price objective on shares of Newmont from $158.00 to $162.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. TD Securities decreased their target price on shares of Newmont from $120.00 to $118.00 and set a "hold" rating for the company in a research note on Tuesday, March 3rd. Sanford C. Bernstein upgraded shares of Newmont from a "market perform" rating to an "outperform" rating and lifted their target price for the company from $121.00 to $157.00 in a report on Friday, February 27th. Finally, Zacks Research upgraded Newmont from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 5th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Newmont presently has an average rating of "Buy" and an average price target of $134.15.

Newmont Stock Performance

Shares of Newmont stock opened at $114.26 on Friday. Newmont Corporation has a 1 year low of $42.93 and a 1 year high of $134.88. The firm's 50-day moving average is $118.56 and its 200 day moving average is $98.06. The stock has a market cap of $124.30 billion, a price-to-earnings ratio of 17.88, a PEG ratio of 0.90 and a beta of 0.39. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.29 and a quick ratio of 2.02.

Newmont (NYSE:NEM - Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The basic materials company reported $2.52 earnings per share for the quarter, beating analysts' consensus estimates of $1.81 by $0.71. The business had revenue of $6.82 billion during the quarter, compared to analyst estimates of $6.18 billion. Newmont had a net margin of 31.25% and a return on equity of 23.28%. Newmont's revenue was up 20.6% compared to the same quarter last year. During the same period last year, the business earned $1.40 EPS. Sell-side analysts anticipate that Newmont Corporation will post 3.45 EPS for the current fiscal year.

Newmont Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Tuesday, March 3rd will be issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Tuesday, March 3rd. This is an increase from Newmont's previous quarterly dividend of $0.25. Newmont's dividend payout ratio (DPR) is presently 16.28%.

About Newmont

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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