BlackRock Inc. Purchases Shares of 120,875,298 Newmont Corporation $NEM

Key Points

• BlackRock acquired 120.9 million Newmont shares in the second quarter, worth approximately $11.29 billion and representing about 11.47% of the gold miner. Institutional investors collectively own 68.85% of Newmont.
• Newmont reported quarterly EPS of $2.10, beating estimates of $2.05, while revenue of $6.12 billion fell short of the $6.35 billion consensus forecast.
• The company declared a quarterly dividend of $0.26 per share, or $1.04 annualized, yielding approximately 0.9%. Analysts maintain a “Moderate Buy” consensus, though several recently lowered their price targets or ratings.

BlackRock Inc. acquired a new position in shares of Newmont Corporation (NYSE:NEM - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 120,875,298 shares of the basic materials company's stock, valued at approximately $11,289,753,000. BlackRock Inc. owned approximately 11.47% of Newmont at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Norges Bank acquired a new stake in shares of Newmont during the 4th quarter worth about $1,443,128,000. Bank of New York Mellon Corp acquired a new position in Newmont in the second quarter valued at about $1,219,505,000. Deutsche Bank AG bought a new stake in Newmont during the second quarter worth about $911,180,000. Van ECK Associates Corp grew its stake in Newmont by 23.4% during 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 buying an additional 5,643,496 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Newmont by 110.4% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 8,743,228 shares of the basic materials company's stock worth $873,011,000 after buying an additional 4,588,018 shares in the last quarter. 68.85% of the stock is owned by institutional investors.

Newmont Trading Up 2.2%

NEM stock opened at $120.35 on Tuesday. The company has a quick ratio of 2.26, a current ratio of 2.55 and a debt-to-equity ratio of 0.15. Newmont Corporation has a twelve month low of $67.20 and a twelve month high of $134.88. The company has a market cap of $126.81 billion, a P/E ratio of 15.20, a PEG ratio of 1.31 and a beta of 0.47. The business has a fifty day moving average of $99.36 and a 200-day moving average of $108.81.

Newmont (NYSE:NEM - Get Free Report) last issued its earnings results on Thursday, July 23rd. The basic materials company reported $2.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.05. Newmont had a net margin of 33.36% and a return on equity of 29.10%. The company had revenue of $6.12 billion for the quarter, compared to analyst estimates of $6.35 billion. During the same quarter last year, the firm earned $1.43 EPS. As a group, equities research analysts expect that Newmont Corporation will post 9 EPS for the current year.

Newmont Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Thursday, September 3rd will be issued a dividend of $0.26 per share. The ex-dividend date is Thursday, September 3rd. This represents a $1.04 dividend on an annualized basis and a yield of 0.9%. Newmont's dividend payout ratio (DPR) is 13.13%.

Insider Buying and Selling

In related news, EVP Peter Toth sold 3,000 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The shares were 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 shares were sold at an average price of $105.09, for a total transaction of $1,202,755.05. Following the completion of the transaction, the chief financial officer directly owned 29,324 shares of the company's stock, valued at $3,081,659.16. This trade represents a 28.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 32,091 shares of company stock valued at $3,292,513 in the last 90 days. 0.06% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. BNP Paribas Exane reduced their target price on Newmont from $111.00 to $102.00 and set a "neutral" rating on the stock in a report on Tuesday, July 21st. Zacks Research cut Newmont from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 14th. Weiss Ratings downgraded Newmont from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, June 17th. The Goldman Sachs Group reduced their price objective on Newmont from $122.50 to $111.40 and set a "buy" rating on the stock in a research note on Wednesday, July 1st. Finally, Argus set a $110.00 target price on Newmont in a report on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $132.59.

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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