Madison Asset Management LLC Buys New Position in Newmont Corporation $NEM

Key Points

• Madison Asset Management purchased 67,500 Newmont shares worth approximately $6.3 million in the second quarter, while institutional investors collectively own 68.85% of the company.
• Analysts maintain a generally positive view of Newmont, with a consensus “Moderate Buy” rating and an average price target of $132.59; targets from individual firms range from $110 to $170.
• Newmont reported quarterly EPS of $2.10, topping expectations of $2.05, and declared a quarterly dividend of $0.26 per share. However, the CEO and CFO both sold shares under a pre-arranged trading plan.

Madison Asset Management LLC purchased a new position in Newmont Corporation (NYSE:NEM - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 67,500 shares of the basic materials company's stock, valued at approximately $6,304,000.

A number of other large investors have also modified their holdings of NEM. Csenge Advisory Group acquired a new position in shares of Newmont during the second quarter valued at about $240,000. AssuredPartners Investment Advisors LLC purchased a new stake in Newmont during the 2nd quarter worth approximately $206,000. Johnson Financial Group Inc. purchased a new stake in Newmont during the 2nd quarter worth approximately $2,719,000. Tocqueville Asset Management L.P. acquired a new position in Newmont during the 2nd quarter valued at approximately $65,745,000. Finally, West Family Investments Inc. acquired a new position in Newmont during the 2nd quarter valued at approximately $212,000. Hedge funds and other institutional investors own 68.85% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently commented on NEM. TD Securities upgraded shares of Newmont from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 14th. TD raised their target price on Newmont from $127.00 to $133.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. Argus set a $110.00 price target on Newmont in a research report on Monday, August 3rd. Canadian Imperial Bank of Commerce set a $170.00 price target on Newmont in a research note on Friday, August 14th. Finally, Zacks Research lowered Newmont from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 14th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $132.59.

Newmont Price Performance

NYSE:NEM opened at $125.18 on Thursday. 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 52 week low of $67.69 and a 52 week high of $134.88. The stock's 50-day moving average price is $100.36 and its 200-day moving average price is $108.69. The stock has a market capitalization of $131.90 billion, a PE ratio of 15.81, a price-to-earnings-growth ratio of 1.20 and a beta of 0.47.

Newmont (NYSE:NEM - Get Free Report) last announced its earnings results 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 firm had revenue of $6.12 billion for the quarter, compared to analyst estimates of $6.35 billion. Newmont had a return on equity of 29.10% and a net margin of 33.36%.During the same quarter last year, the firm posted $1.43 EPS. As a group, equities analysts expect that Newmont Corporation will post 8.99 EPS for the current fiscal year.

Newmont Announces Dividend

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

Insider Buying and Selling at Newmont

In other news, CFO Brian Tabolt sold 11,445 shares of the company's stock in a transaction that occurred 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 sale, the chief financial officer directly owned 29,324 shares in the company, valued at $3,081,659.16. This represents a 28.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Natascha Viljoen sold 7,764 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $104.00, for a total value of $807,456.00. Following the completion of the sale, the chief executive officer owned 135,235 shares of the company's stock, valued at approximately $14,064,440. The trade was a 5.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 32,091 shares of company stock worth $3,292,513. Insiders own 0.06% of the company's stock.

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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