Royal Palms Capital LLC Makes New Investment in Newmont Corporation $NEM

Key Points

• Royal Palms Capital LLC disclosed a new position in Newmont, buying 51,737 shares worth about $5.17 million. The stake makes Newmont the firm’s largest holding, at roughly 6.1% of its portfolio.
• Newmont reported strong quarterly results, with earnings of $2.90 per share beating estimates and revenue of $7.31 billion topping forecasts. Revenue jumped 45.8% year over year, and the company also raised attention with a quarterly dividend of $0.26 per share.
• Insider selling continued during the quarter, including share sales by EVP Peter Toth and insider David John Thornton. Despite that, institutional ownership remains high at 68.85%, and analysts currently rate the stock Moderate Buy with an average price target of $142.05.

Royal Palms Capital LLC purchased a new position in shares of Newmont Corporation (NYSE:NEM - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 51,737 shares of the basic materials company's stock, valued at approximately $5,166,000. Newmont comprises about 6.1% of Royal Palms Capital LLC's portfolio, making the stock its biggest position.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Apella Capital LLC boosted its holdings in Newmont by 4.1% in the fourth 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 holdings in Newmont by 1.3% in the fourth quarter. New Wave Wealth Advisors LLC now owns 6,849 shares of the basic materials company's stock valued at $684,000 after purchasing an additional 88 shares during the last quarter. Novem Group boosted its holdings in Newmont by 3.7% in the fourth quarter. Novem Group now owns 2,487 shares of the basic materials company's stock valued at $248,000 after purchasing an additional 88 shares during the last quarter. Norden Group LLC boosted its holdings in Newmont by 0.7% in the fourth quarter. Norden Group LLC now owns 12,367 shares of the basic materials company's stock valued at $1,235,000 after purchasing an additional 90 shares during the last quarter. Finally, Coston McIsaac & Partners boosted its holdings in Newmont by 28.6% in the fourth quarter. Coston McIsaac & Partners now owns 450 shares of the basic materials company's stock valued at $44,000 after purchasing an additional 100 shares during the last quarter. 68.85% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, EVP Peter Toth sold 3,000 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $110.11, for a total transaction of $330,330.00. Following the sale, the executive vice president directly owned 49,315 shares in the company, valued at approximately $5,430,074.65. This represents a 5.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David John Thornton sold 2,296 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $110.11, for a total value of $252,812.56. Following the completion of the sale, the insider owned 23,163 shares in the company, valued at approximately $2,550,477.93. This represents a 9.02% 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 have sold a total of 43,068 shares of company stock valued at $4,769,475 over the last quarter. Company insiders own 0.06% of the company's stock.

Newmont Trading Up 3.6%

Shares of NYSE NEM opened at $111.49 on Wednesday. The stock's 50 day moving average price is $110.94 and its two-hundred day moving average price is $108.60. Newmont Corporation has a 52-week low of $51.80 and a 52-week high of $134.88. The stock has a market capitalization of $119.02 billion, a P/E ratio of 14.46 and a beta of 0.43. The company has a quick ratio of 2.17, a current ratio of 2.44 and a debt-to-equity ratio of 0.15.

Newmont (NYSE:NEM - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The basic materials company reported $2.90 earnings per share for the quarter, topping analysts' consensus estimates of $2.07 by $0.83. The business had revenue of $7.31 billion for the quarter, compared to analysts' expectations of $6.83 billion. Newmont had a return on equity of 27.84% and a net margin of 33.87%.The business's quarterly revenue was up 45.8% on a year-over-year basis. During the same period in the prior year, the firm earned $1.25 EPS. On average, analysts anticipate that Newmont Corporation will post 9.47 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, June 22nd. Stockholders of record on Wednesday, May 27th will be given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, May 27th. Newmont's dividend payout ratio is presently 13.49%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on NEM. Argus upped their price objective on Newmont from $94.00 to $125.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. TD Securities restated a "hold" rating and set a $129.00 price objective on shares of Newmont in a research note on Monday, April 27th. Macquarie Infrastructure upped their price objective on Newmont from $130.00 to $133.00 and gave the company an "outperform" rating in a research note on Monday, April 27th. BNP Paribas Exane upped their price objective on Newmont from $123.00 to $128.00 and gave the company a "neutral" rating in a research note on Monday, March 2nd. Finally, TD Cowen restated a "buy" rating on shares of Newmont in a research note on Monday, April 27th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $142.05.

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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