National Bank Financial Issues Pessimistic Forecast for Newmont (NYSE:NEM) Stock Price

Key Points

• National Bank Financial cut its price target on Newmont from $140 to $125 while keeping a sector perform rating, signaling a more cautious outlook on the gold miner.
• Despite the reduced target, Newmont’s stock was trading at $94.43, and the new objective still implies about 32% upside from the prior close.
• Analyst sentiment remains mixed but generally positive: MarketBeat reports a Moderate Buy consensus with an average price target of $136.64, while Newmont also recently beat quarterly earnings and revenue estimates.

Newmont (NYSE:NEM - Get Free Report) had its price objective dropped by equities research analysts at National Bank Financial from $140.00 to $125.00 in a research note issued to investors on Tuesday,BayStreet.CA reports. The firm presently has a "sector perform" rating on the basic materials company's stock. National Bank Financial's price target indicates a potential upside of 32.37% from the stock's previous close.

Other research analysts have also issued reports about the company. TD Cowen restated a "buy" rating on shares of Newmont in a research note on Monday, April 27th. Jefferies Financial Group lowered their price target on shares of Newmont from $158.00 to $146.00 and set a "buy" rating on the stock in a report on Monday, July 6th. BNP Paribas Exane reduced their price objective on shares of Newmont from $128.00 to $111.00 and set a "neutral" rating for the company in a report on Thursday, June 18th. BMO Capital Markets decreased their target price on shares of Newmont from $145.00 to $135.00 and set an "outperform" rating on the stock in a research report on Tuesday, June 23rd. Finally, Royal Bank Of Canada lowered their target price on shares of Newmont from $140.00 to $135.00 and set an "outperform" rating on the stock in a research note on Thursday, July 9th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, Newmont has a consensus rating of "Moderate Buy" and an average price target of $136.64.

Newmont Stock Performance

NEM stock traded up $1.33 during trading on Tuesday, reaching $94.43. 4,605,812 shares of the stock were exchanged, compared to its average volume of 9,257,697. Newmont has a twelve month low of $55.37 and a twelve month high of $134.88. The company has a current ratio of 2.44, a quick ratio of 2.17 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $100.81 billion, a P/E ratio of 12.26, a price-to-earnings-growth ratio of 1.08 and a beta of 0.46. The stock has a 50 day simple moving average of $103.98 and a 200-day simple moving average of $110.59.

Newmont (NYSE:NEM - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The basic materials company reported $2.90 EPS for the quarter, topping analysts' consensus estimates of $2.07 by $0.83. Newmont had a return on equity of 27.84% and a net margin of 33.87%.The company had revenue of $7.31 billion during the quarter, compared to the consensus estimate of $6.83 billion. During the same quarter last year, the company earned $1.25 EPS. The company's quarterly revenue was up 45.8% on a year-over-year basis. As a group, sell-side analysts anticipate that Newmont will post 9.32 earnings per share for the current year.

Insider Activity

In other news, EVP Peter Wexler sold 13,378 shares of Newmont 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 $1,473,051.58. Following the completion of the transaction, the executive vice president owned 67,865 shares in the company, valued at approximately $7,472,615.15. The trade was a 16.47% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David John Thornton sold 2,296 shares of the business's 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 $252,812.56. Following the completion of the transaction, the insider directly owned 23,163 shares in the company, valued at $2,550,477.93. The trade was a 9.02% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 28,556 shares of company stock valued at $3,058,146 in the last ninety days. 0.06% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Newmont

Several institutional investors have recently bought and sold shares of NEM. Cedar Mountain Advisors LLC acquired a new stake in shares of Newmont in the first quarter valued at $25,000. Pinnacle Bancorp Inc. acquired a new position in Newmont during the 1st quarter worth about $25,000. GoalVest Advisory LLC bought a new stake in Newmont during the 4th quarter worth about $25,000. Swiss RE Ltd. bought a new stake in Newmont during the 4th quarter worth about $26,000. Finally, Cornerstone Planning Group LLC increased its position in Newmont by 312.1% in the 4th quarter. Cornerstone Planning Group LLC now owns 272 shares of the basic materials company's stock valued at $27,000 after acquiring an additional 206 shares in the last quarter. Institutional investors own 68.85% of the company's stock.

Newmont Company Profile

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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