Orbis Allan Gray Ltd Raises Position in Newmont Corporation $NEM

Key Points

• Orbis Allan Gray Ltd has increased its stake in Newmont Corporation to approximately $273.88 million, owning about 1.6% of the company’s stock, making Newmont its 28th largest holding.
• Newmont reported a quarterly revenue of $5.32 billion, significantly exceeding analyst expectations of $4.70 billion, and posted an EPS of $1.43, well above the consensus estimate of $0.95.
• The company has announced a quarterly dividend of $0.25 per share, with an ex-dividend date on September 4th, indicating a 1.3% dividend yield for investors.

Orbis Allan Gray Ltd grew its stake in shares of Newmont Corporation (NYSE:NEM - Free Report) by 1.7% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 5,672,683 shares of the basic materials company's stock after purchasing an additional 92,387 shares during the period. Newmont comprises approximately 1.6% of Orbis Allan Gray Ltd's portfolio, making the stock its 28th biggest position. Orbis Allan Gray Ltd owned about 0.51% of Newmont worth $273,877,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp increased its holdings in Newmont by 8.9% during the 1st quarter. Bank of New York Mellon Corp now owns 16,014,066 shares of the basic materials company's stock worth $773,159,000 after purchasing an additional 1,306,783 shares in the last quarter. Northern Trust Corp increased its holdings in Newmont by 1.5% during the 1st quarter. Northern Trust Corp now owns 12,934,095 shares of the basic materials company's stock worth $624,458,000 after purchasing an additional 191,940 shares in the last quarter. Invesco Ltd. increased its holdings in Newmont by 2.2% during the 1st quarter. Invesco Ltd. now owns 10,748,470 shares of the basic materials company's stock worth $518,936,000 after purchasing an additional 228,116 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Newmont by 16.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 9,407,995 shares of the basic materials company's stock valued at $350,166,000 after acquiring an additional 1,331,278 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in shares of Newmont by 15.9% in the first quarter. Dimensional Fund Advisors LP now owns 8,772,477 shares of the basic materials company's stock valued at $423,572,000 after acquiring an additional 1,201,237 shares in the last quarter. 68.85% of the stock is owned by institutional investors.

Newmont Stock Performance

Shares of Newmont stock traded down $0.43 during trading hours on Wednesday, reaching $75.43. The company had a trading volume of 8,870,455 shares, compared to its average volume of 11,702,397. Newmont Corporation has a one year low of $36.86 and a one year high of $76.52. The business has a fifty day simple moving average of $64.56 and a 200 day simple moving average of $55.41. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.23 and a quick ratio of 1.91. The firm has a market cap of $82.86 billion, a PE ratio of 13.54, a price-to-earnings-growth ratio of 0.88 and a beta of 0.34.

Newmont (NYSE:NEM - Get Free Report) last posted its quarterly earnings results on Thursday, July 24th. The basic materials company reported $1.43 EPS for the quarter, topping analysts' consensus estimates of $0.95 by $0.48. Newmont had a return on equity of 17.86% and a net margin of 30.50%.The firm had revenue of $5.32 billion during the quarter, compared to analyst estimates of $4.70 billion. During the same period last year, the company earned $0.72 earnings per share. The business's revenue for the quarter was up 20.8% on a year-over-year basis. On average, analysts anticipate that Newmont Corporation will post 3.45 earnings per share for the current fiscal year.

Newmont Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Stockholders of record on Thursday, September 4th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, September 4th. Newmont's dividend payout ratio (DPR) is presently 17.95%.

Insider Buying and Selling

In related news, CAO Brian Tabolt sold 7,015 shares of the stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $68.02, for a total value of $477,160.30. Following the sale, the chief accounting officer owned 32,615 shares in the company, valued at approximately $2,218,472.30. This trade represents a 17.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Bruce R. Brook sold 2,077 shares of the stock in a transaction on Friday, August 1st. The stock was sold at an average price of $63.66, for a total value of $132,221.82. Following the completion of the sale, the director owned 41,026 shares in the company, valued at $2,611,715.16. This trade represents a 4.82% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 17,169 shares of company stock worth $1,098,636. Corporate insiders own 0.05% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Stifel Canada raised Newmont to a "strong-buy" rating in a report on Tuesday, July 8th. UBS Group upped their price objective on Newmont from $60.00 to $68.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. CIBC set a $74.00 price objective on Newmont and gave the company a "neutral" rating in a research note on Tuesday, July 15th. Royal Bank Of Canada upped their price objective on Newmont from $52.00 to $66.00 and gave the company a "sector perform" rating in a research note on Wednesday, June 4th. Finally, National Bank Financial upgraded Newmont from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 25th. Four investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $65.15.

Newmont Company Profile

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana.