Jefferies Financial Group Issues Pessimistic Forecast for Newmont (NYSE:NEM) Stock Price

Key Points

• Jefferies cut its price target on Newmont from $165 to $154, while keeping a buy rating. The new target still implies about 42% upside from the current share price.
• Newmont shares fell 3.1% to about $108.19 in Wednesday trading, below the average analyst target of $141.53. The stock has traded between $51.80 and $134.88 over the past year.
• Recent earnings were strong: Newmont reported $2.90 EPS versus the $2.07 estimate and revenue of $7.31 billion, up 45.8% year over year. However, insiders also sold shares recently, including EVP Peter Wexler and Peter Toth.

Newmont (NYSE:NEM - Get Free Report) had its price target reduced by stock analysts at Jefferies Financial Group from $165.00 to $154.00 in a research report issued on Wednesday,MarketScreener reports. The brokerage presently has a "buy" rating on the basic materials company's stock. Jefferies Financial Group's price target suggests a potential upside of 42.35% from the company's current price.

A number of other brokerages have also recently weighed in on NEM. National Bank Financial boosted their price target on shares of Newmont from $130.00 to $140.00 and gave the company a "sector perform" rating in a research report on Friday, April 24th. Scotiabank cut their target price on Newmont from $152.00 to $151.00 and set a "sector outperform" rating on the stock in a research report on Friday, March 20th. Zacks Research downgraded Newmont from a "strong-buy" rating to a "hold" rating in a report on Friday, April 3rd. Macquarie Infrastructure upped their target price on Newmont from $130.00 to $133.00 and gave the company an "outperform" rating in a research report on Monday, April 27th. Finally, TD Securities restated a "hold" rating and set a $129.00 price target on shares of Newmont in a research note on Monday, April 27th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Newmont has an average rating of "Moderate Buy" and a consensus target price of $141.53.

Newmont Stock Down 3.1%

Newmont stock traded down $3.42 during mid-day trading on Wednesday, hitting $108.19. The company had a trading volume of 2,360,199 shares, compared to its average volume of 9,424,159. 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 has a 1 year low of $51.80 and a 1 year high of $134.88. The business has a fifty day moving average of $110.94 and a 200 day moving average of $108.60. The stock has a market cap of $115.49 billion, a price-to-earnings ratio of 14.05 and a beta of 0.43.

Newmont (NYSE:NEM - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The basic materials company reported $2.90 earnings per share for the quarter, topping the consensus estimate of $2.07 by $0.83. The business had revenue of $7.31 billion during the quarter, compared to the consensus estimate of $6.83 billion. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The company's revenue was up 45.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.25 EPS. On average, sell-side analysts expect that Newmont will post 9.47 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Newmont news, EVP Peter Wexler sold 13,378 shares of Newmont stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $110.11, for a total value of $1,473,051.58. Following the transaction, the executive vice president directly owned 67,865 shares in the company, valued at approximately $7,472,615.15. This trade represents a 16.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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. Also, EVP Peter Toth sold 3,000 shares of the business'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 $330,330.00. Following the completion of the transaction, the executive vice president directly owned 49,315 shares in the company, valued at approximately $5,430,074.65. The trade was a 5.73% decrease in their position. 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 43,068 shares of company stock valued at $4,769,475 over the last 90 days. Insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Newmont

A number of large investors have recently bought and sold shares of NEM. Summit Financial Wealth Advisors LLC lifted its stake in shares of Newmont by 3.6% in the 1st quarter. Summit Financial Wealth Advisors LLC now owns 7,034 shares of the basic materials company's stock worth $761,000 after acquiring an additional 246 shares during the period. Axiom Investment Management LLC acquired a new position in shares of Newmont during the first quarter worth about $45,000. Summitry LLC purchased a new position in Newmont during the first quarter worth about $300,000. Groupe la Francaise raised its holdings in Newmont by 51.9% during the first quarter. Groupe la Francaise now owns 448,860 shares of the basic materials company's stock worth $48,448,000 after purchasing an additional 153,360 shares in the last quarter. Finally, Arete Wealth Advisors LLC lifted its position in Newmont by 90.4% in the first quarter. Arete Wealth Advisors LLC now owns 44,950 shares of the basic materials company's stock valued at $4,853,000 after purchasing an additional 21,338 shares during the period. Hedge funds and other institutional investors own 68.85% 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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