Bank of New York Mellon Corp Takes $1.22 Billion Position in Newmont Corporation $NEM

Key Points

• Bank of New York Mellon initiated a $1.22 billion position in Newmont, purchasing 13.1 million shares, or 1.24% of the company. Institutional investors collectively own 68.85% of Newmont.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $132.59, despite several recent target reductions.
• Newmont reported quarterly EPS of $2.10, beating estimates, while revenue of $6.12 billion fell short of forecasts. The company also announced a quarterly dividend of $0.26 per share, representing a 0.8% yield.

Bank of New York Mellon Corp bought a new position in shares of Newmont Corporation (NYSE:NEM - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 13,056,801 shares of the basic materials company's stock, valued at approximately $1,219,505,000. Bank of New York Mellon Corp owned 1.24% of Newmont as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in Newmont by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 134,107,293 shares of the basic materials company's stock worth $13,390,613,000 after buying an additional 637,996 shares during the last quarter. State Street Corp increased its stake in Newmont by 1.0% in the fourth quarter. State Street Corp now owns 49,959,850 shares of the basic materials company's stock valued at $4,988,491,000 after purchasing an additional 480,223 shares in the last quarter. Van ECK Associates Corp raised its holdings in Newmont by 23.4% in the fourth quarter. Van ECK Associates Corp now owns 29,780,063 shares of the basic materials company's stock worth $2,973,539,000 after purchasing an additional 5,643,496 shares during the period. Geode Capital Management LLC boosted its position in shares of Newmont by 3.6% during the fourth quarter. Geode Capital Management LLC now owns 27,011,084 shares of the basic materials company's stock worth $2,738,756,000 after purchasing an additional 946,824 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Newmont in the 4th quarter valued at $1,443,128,000. 68.85% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several analysts recently commented on NEM shares. Macquarie Infrastructure dropped their price objective on Newmont from $133.00 to $123.00 and set an "outperform" rating on the stock in a research note on Monday, June 15th. TD Securities raised Newmont from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 14th. BMO Capital Markets decreased their price objective on Newmont from $145.00 to $135.00 and set an "outperform" rating for the company in a research report on Tuesday, June 23rd. Argus set a $110.00 target price on shares of Newmont in a report on Monday, August 3rd. Finally, Citigroup dropped their price objective on shares of Newmont from $150.00 to $125.00 and set a "buy" rating on the stock in a report on Monday, July 20th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $132.59.

Newmont Trading Up 2.2%

Shares of NYSE:NEM opened at $127.86 on Friday. The company's 50-day moving average price is $100.96 and its two-hundred day moving average price is $108.80. Newmont Corporation has a one year low of $68.90 and a one year high of $134.88. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.55 and a quick ratio of 2.26. The stock has a market capitalization of $134.72 billion, a PE ratio of 16.14, a price-to-earnings-growth ratio of 1.29 and a beta of 0.47.

Newmont (NYSE:NEM - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The basic materials company reported $2.10 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.05. The company had revenue of $6.12 billion during the quarter, compared to analysts' expectations of $6.35 billion. Newmont had a return on equity of 29.10% and a net margin of 33.36%.During the same period last year, the firm posted $1.43 earnings per share. On average, equities analysts forecast that Newmont Corporation will post 8.99 EPS for the current fiscal year.

Newmont Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 28th. Stockholders of record on Thursday, September 3rd will be given a dividend of $0.26 per share. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $1.04 annualized dividend and a dividend yield of 0.8%. Newmont's dividend payout ratio (DPR) is 13.13%.

Insider Activity

In other Newmont news, EVP Peter Toth sold 3,000 shares of Newmont stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $93.45, for a total transaction of $280,350.00. Following the completion of the transaction, the executive vice president owned 40,315 shares in the company, valued at approximately $3,767,436.75. The trade was a 6.93% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian Tabolt sold 11,445 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $105.09, for a total value of $1,202,755.05. Following the completion of the transaction, the chief financial officer directly owned 29,324 shares in the company, valued at approximately $3,081,659.16. This represents a 28.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 32,091 shares of company stock worth $3,292,513 over the last three months. 0.06% of the stock is currently owned by insiders.

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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