Newmont Corporation (NYSE:NEM) Given Average Rating of "Buy" by Analysts

Key Points

• Analysts rate Newmont a "Buy": 22 firms cover NEM (16 buys, 3 holds, 3 strong buys) with an average 12‑month price target of $134.15.
• Quarterly results beat expectations: Newmont reported $2.52 EPS vs. $1.81 expected and revenue of $6.82 billion (up 20.6% year‑over‑year) with a 31.25% net margin; analysts expect about $3.45 EPS for the year.
• Dividend raised and heavy institutional ownership: the company increased its quarterly dividend to $0.26 (annualized $1.04, yield ~0.9%) and ~68.9% of shares are held by institutions, including sizable buys by Norges Bank, VanEck, Invesco, Arrowstreet and Boston Partners.

Shares of Newmont Corporation (NYSE:NEM - Get Free Report) have earned an average recommendation of "Buy" from the twenty-two ratings firms that are currently covering the firm, Marketbeat reports. Three equities research analysts have rated the stock with a hold recommendation, sixteen have given a buy recommendation and three have assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $134.1526.

A number of equities analysts have recently issued reports on NEM shares. Canaccord Genuity Group increased their target price on Newmont from $115.00 to $140.00 and gave the stock a "buy" rating in a research note on Friday, January 23rd. Royal Bank Of Canada lifted their price target on Newmont from $120.00 to $125.00 and gave the company an "outperform" rating in a research note on Tuesday, February 3rd. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Newmont in a report on Monday, December 29th. BMO Capital Markets cut their price objective on Newmont from $145.00 to $140.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. Finally, Argus raised their target price on Newmont from $75.00 to $94.00 in a report on Friday, November 21st.

Newmont Trading Down 1.7%

Shares of Newmont stock opened at $114.26 on Friday. The firm has a market cap of $124.30 billion, a price-to-earnings ratio of 17.88, a price-to-earnings-growth ratio of 0.90 and a beta of 0.39. Newmont has a 52-week low of $42.93 and a 52-week high of $134.88. The company's 50-day simple moving average is $118.56 and its 200-day simple moving average is $98.06. The company has a quick ratio of 2.02, a current ratio of 2.29 and a debt-to-equity ratio of 0.16.

Newmont (NYSE:NEM - Get Free Report) last announced its quarterly earnings data on Thursday, February 19th. The basic materials company reported $2.52 EPS for the quarter, beating analysts' consensus estimates of $1.81 by $0.71. Newmont had a net margin of 31.25% and a return on equity of 23.28%. The firm had revenue of $6.82 billion during the quarter, compared to the consensus estimate of $6.18 billion. During the same quarter last year, the firm earned $1.40 earnings per share. The firm's revenue was up 20.6% compared to the same quarter last year. As a group, equities research analysts anticipate that Newmont will post 3.45 earnings per share for the current year.

Newmont Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 26th. Stockholders of record on Tuesday, March 3rd will be paid a dividend of $0.26 per share. This is a positive change from Newmont's previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $1.04 annualized dividend and a dividend yield of 0.9%. Newmont's dividend payout ratio is presently 16.28%.

Hedge Funds Weigh In On Newmont

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of Newmont during the second quarter valued at $919,170,000. Van ECK Associates Corp lifted its holdings in Newmont by 23.4% in the 4th quarter. Van ECK Associates Corp now owns 29,780,063 shares of the basic materials company's stock valued at $2,973,539,000 after purchasing an additional 5,643,496 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Newmont by 45.0% during the 2nd quarter. Invesco Ltd. now owns 15,587,917 shares of the basic materials company's stock worth $908,152,000 after purchasing an additional 4,839,447 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in shares of Newmont by 110.4% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 8,743,228 shares of the basic materials company's stock worth $873,011,000 after purchasing an additional 4,588,018 shares during the last quarter. Finally, Boston Partners grew its holdings in shares of Newmont by 4,090.7% during the second quarter. Boston Partners now owns 4,643,057 shares of the basic materials company's stock worth $272,558,000 after buying an additional 4,532,263 shares in the last quarter. 68.85% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.