Barings LLC Cuts Stock Holdings in Newmont Corporation $NEM

Key Points

• Barings LLC reduced its stake in Newmont by 28.1% in the first quarter, selling 39,691 shares and leaving it with 101,437 shares valued at about $11.0 million.
• Newmont faces mixed near-term sentiment: Zacks Research downgraded the stock to “hold,” and investors are watching the upcoming earnings report for signs of whether the company can top expectations.
• Despite some caution, the company has recent operational and financial positives, including resumed Cadia mine operations, a strong last quarter earnings beat, and a quarterly dividend that implies a 1.1% yield.

Barings LLC lowered its position in shares of Newmont Corporation (NYSE:NEM - Free Report) by 28.1% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 101,437 shares of the basic materials company's stock after selling 39,691 shares during the quarter. Barings LLC's holdings in Newmont were worth $10,981,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in NEM. Apella Capital LLC raised 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 valued at $219,000 after purchasing an additional 86 shares during the last quarter. New Wave Wealth Advisors LLC boosted its stake 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 worth $684,000 after purchasing an additional 88 shares during the last quarter. Novem Group boosted its stake in Newmont by 3.7% during the 4th quarter. Novem Group now owns 2,487 shares of the basic materials company's stock worth $248,000 after purchasing an additional 88 shares during the last quarter. Norden Group LLC grew its holdings 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 worth $1,235,000 after buying an additional 90 shares in the last quarter. Finally, Parkside Financial Bank & Trust raised its position in shares of Newmont by 1.4% in the fourth 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 last quarter. 68.85% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Newmont

Here are the key news stories impacting Newmont this week:

• Negative Sentiment: Zacks Research downgraded Newmont from “strong-buy” to “hold,” adding to near-term pressure on the stock. Newmont was downgraded by Zacks Research from "strong-buy" to "hold".
• Negative Sentiment: Investors are also worried about the upcoming quarterly report, as coverage notes Newmont may not have the setup for an earnings beat even though EPS is expected to grow. Newmont Corporation (NEM) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
• Neutral Sentiment: Newmont resumed operations at its Cadia mine after a seismic event, and management said inspections found no injuries or damage. That removes an operational overhang, but the company still faces higher costs and softer gold prices. Newmont (NEM) Resumes Cadia Operations As It Pushes Ahead With Key Growth Projects
• Positive Sentiment: Several analysts remain constructive, with reports pointing to improved operational efficiency, growing free cash flow, and share buybacks as Newmont works through Newcrest integration. Did Analyst Upgrades and Buybacks Just Shift Newmont's (NEM) Operational Efficiency Investment Narrative?
• Positive Sentiment: Some analysts also argued Newmont looks undervalued, citing permits that could unlock major copper-gold resources and support a production rebound. Newmont: The Permits That Set The Stage For A Re-Rating

Insiders Place Their Bets

In other news, CEO Natascha Viljoen sold 3,882 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $105.32, for a total transaction of $408,852.24. Following the completion of the transaction, the chief executive officer directly owned 142,999 shares in the company, valued at approximately $15,060,654.68. This represents a 2.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Peter Wexler sold 13,378 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $110.11, for a total value of $1,473,051.58. Following the sale, the executive vice president directly owned 67,865 shares of the company's stock, valued at $7,472,615.15. The trade was a 16.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 28,556 shares of company stock worth $3,058,146 in the last three months. 0.06% of the stock is owned by insiders.

Newmont Price Performance

Shares of NEM stock opened at $90.83 on Friday. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.44 and a quick ratio of 2.17. The firm's 50-day moving average is $102.85 and its two-hundred day moving average is $110.35. Newmont Corporation has a 12 month low of $56.73 and a 12 month high of $134.88. The company has a market capitalization of $96.96 billion, a PE ratio of 11.78, a price-to-earnings-growth ratio of 1.08 and a beta of 0.46.

Newmont (NYSE:NEM - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The basic materials company reported $2.90 earnings per share for the quarter, beating the consensus estimate of $2.07 by $0.83. The business had revenue of $7.31 billion during the quarter, compared to analysts' expectations of $6.83 billion. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The business's revenue for the quarter was up 45.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.25 EPS. Analysts predict that Newmont Corporation will post 9.32 earnings per share for the current year.

Newmont Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 22nd. Investors of record on Wednesday, May 27th were given a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 1.1%. The ex-dividend date was Wednesday, May 27th. Newmont's dividend payout ratio is presently 13.49%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on NEM. Wall Street Zen downgraded shares of Newmont from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 30th. Canaccord Genuity Group upped their price objective on shares of Newmont from $150.00 to $160.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Royal Bank Of Canada cut their price objective on shares of Newmont from $140.00 to $135.00 and set an "outperform" rating for the company in a report on Thursday, July 9th. TD Cowen restated a "buy" rating on shares of Newmont in a report on Monday, April 27th. Finally, UBS Group dropped their price target on Newmont from $140.00 to $120.00 and set a "buy" rating for the company in a research report on Tuesday, June 30th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $136.26.

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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