Rakuten Investment Management Inc. Makes New $22.18 Million Investment in Newmont Corporation $NEM

Key Points

• Rakuten Investment Management opened a $22.18 million position in Newmont during the third quarter, buying 189,412 shares. Institutional investors collectively own 68.85% of the company’s stock.
• Newmont reported quarterly earnings of $2.20 per share, beating the $1.94 consensus estimate, while revenue rose 15.2% year over year to $6.36 billion.
• The company declared a quarterly dividend of $0.26 per share, equivalent to $1.04 annually and a 1.0% yield. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $137.20.

Rakuten Investment Management Inc. bought a new stake in Newmont Corporation (NYSE:NEM - Free Report) during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 189,412 shares of the basic materials company's stock, valued at approximately $22,178,000.

Other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Newmont in the 2nd quarter valued at about $11,289,753,000. State Street Corp boosted its position in Newmont by 3.1% during the second quarter. State Street Corp now owns 52,396,702 shares of the basic materials company's stock worth $4,893,852,000 after purchasing an additional 1,565,716 shares during the period. Van ECK Associates Corp purchased a new position in shares of Newmont in the second quarter worth about $671,197,000. Bank of New York Mellon Corp purchased a new position in shares of Newmont in the second quarter worth about $1,219,505,000. Finally, First Eagle Investment Management LLC purchased a new position in shares of Newmont in the second quarter worth about $241,820,000. Hedge funds and other institutional investors own 68.85% of the company's stock.

Insiders Place Their Bets

In other news, EVP Peter Toth sold 3,000 shares of Newmont stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $108.04, for a total transaction of $324,120.00. Following the completion of the sale, the executive vice president directly owned 31,315 shares of the company's stock, valued at approximately $3,383,272.60. The trade was a 8.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Natascha Viljoen sold 3,882 shares of the company's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $123.00, for a total transaction of $477,486.00. Following the completion of the transaction, the chief executive officer owned 131,353 shares of the company's stock, valued at $16,156,419. This trade represents a 2.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 20,646 shares of company stock worth $2,380,140 in the last three months. Insiders own 0.06% of the company's stock.

Newmont Stock Down 1.5%

Shares of NYSE NEM opened at $107.48 on Wednesday. Newmont Corporation has a 12 month low of $78.60 and a 12 month high of $135.29. The company has a current ratio of 2.45, a quick ratio of 2.16 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $111.70 billion, a price-to-earnings ratio of 12.50, a PEG ratio of 1.99 and a beta of 0.56. The business has a 50-day moving average of $119.68 and a 200-day moving average of $112.42.

Newmont (NYSE:NEM - Get Free Report) last announced its earnings results on Thursday, October 22nd. The basic materials company reported $2.20 earnings per share for the quarter, beating analysts' consensus estimates of $1.94 by $0.26. Newmont had a net margin of 34.73% and a return on equity of 29.81%. The business had revenue of $6.36 billion for the quarter, compared to the consensus estimate of $6.27 billion. During the same period last year, the firm posted $1.71 earnings per share. Newmont's quarterly revenue was up 15.2% on a year-over-year basis. Sell-side analysts expect that Newmont Corporation will post 9.11 earnings per share for the current fiscal year.

Newmont Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Wednesday, November 25th will be issued a $0.26 dividend. The ex-dividend date of this dividend is Wednesday, November 25th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 1.0%. Newmont's dividend payout ratio is presently 12.09%.

Analyst Ratings Changes

A number of brokerages recently commented on NEM. Wall Street Zen cut shares of Newmont from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Jefferies Financial Group lifted their price objective on shares of Newmont from $146.00 to $155.00 in a research note on Friday, October 9th. Argus set a $110.00 target price on shares of Newmont and gave the company a "buy" rating in a report on Monday, August 3rd. BMO Capital Markets increased their target price on Newmont from $135.00 to $145.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 29th. Finally, Scotiabank dropped their target price on Newmont from $149.00 to $148.00 and set an "outperform" rating on the stock in a research report on Tuesday, October 27th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $137.20.

Newmont Company Profile

Newmont Corporation NYSE: NEM is a global mining company primarily engaged in the exploration, development, and production of gold. The company also produces copper, silver, zinc, and lead as byproducts of its mining operations. Its activities span the full mining life cycle, including resource discovery, project development, mine operations, processing, reclamation, and closure.

Founded in 1921, Newmont has grown into one of the world's largest gold producers. The company operates and develops mines across several regions, including North America, South America, Australia, Africa, and Papua New Guinea.

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