Newmont Corporation (NYSE:NEM) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts are broadly positive on Newmont, with 24 research firms averaging a “Moderate Buy” rating. The consensus 12-month price target is about $140.98, above the current share price.
• Newmont’s latest quarterly results came in well ahead of expectations, posting EPS of $2.90 versus $2.07 expected and revenue of $7.31 billion versus $6.83 billion forecast. Revenue also jumped 45.8% year over year.
• The company announced a quarterly dividend of $0.26 per share, payable June 22, while institutional ownership remains high at 68.85%. Recent insider sales were disclosed, but they were executed under pre-arranged trading plans.

Newmont Corporation (NYSE:NEM - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twenty-four research firms that are presently covering the firm, MarketBeat reports. Five equities research analysts have rated the stock with a hold rating, sixteen have given a buy rating and three have assigned a strong buy rating to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $140.9762.

NEM has been the topic of several recent research reports. TD Securities reaffirmed a "hold" rating and issued a $129.00 target price on shares of Newmont in a research note on Monday, April 27th. Argus upped their target price on shares of Newmont from $94.00 to $125.00 and gave the company a "buy" rating in a research report on Thursday, April 23rd. Bank of America increased their price target on shares of Newmont from $134.00 to $151.00 and gave the company a "buy" rating in a research report on Thursday, February 26th. BNP Paribas Exane reduced their target price on Newmont from $128.00 to $111.00 and set a "neutral" rating on the stock in a report on Thursday. Finally, Scotiabank reduced their target price on Newmont from $152.00 to $151.00 and set a "sector outperform" rating on the stock in a report on Friday, March 20th.

Newmont Stock Performance

NEM stock opened at $103.86 on Friday. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.44 and a quick ratio of 2.17. The company has a 50 day moving average price of $110.02 and a 200 day moving average price of $110.56. Newmont has a fifty-two week low of $55.37 and a fifty-two week high of $134.88. The stock has a market capitalization of $110.88 billion, a PE ratio of 13.47, a price-to-earnings-growth ratio of 1.72 and a beta of 0.42.

Newmont (NYSE:NEM - Get Free Report) last posted 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. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The firm had revenue of $7.31 billion during the quarter, compared to analysts' expectations of $6.83 billion. During the same quarter in the previous year, the company posted $1.25 EPS. Newmont's revenue was up 45.8% on a year-over-year basis. Analysts forecast that Newmont will post 9.91 EPS for the current year.

Newmont Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 22nd. Stockholders of record on Wednesday, May 27th will be paid a dividend of $0.26 per share. The ex-dividend date is Wednesday, May 27th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 1.0%. Newmont's dividend payout ratio is currently 13.49%.

Insider Buying and Selling

In related news, EVP Peter Toth sold 3,000 shares of the firm's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $105.32, for a total value of $315,960.00. Following the completion of the sale, the executive vice president directly owned 46,315 shares in the company, valued at approximately $4,877,895.80. This trade represents a 6.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 dated Friday, May 1st. The shares were sold at an average price of $110.11, for a total transaction of $252,812.56. Following the completion of the sale, the insider owned 23,163 shares of the company's stock, valued at $2,550,477.93. This trade 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. In the last quarter, insiders have sold 28,556 shares of company stock worth $3,120,276. 0.06% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Newmont

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NEM. Vanguard Group Inc. boosted its stake in Newmont by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 134,107,293 shares of the basic materials company's stock valued at $13,390,613,000 after purchasing an additional 637,996 shares during the period. State Street Corp grew its holdings in Newmont by 1.0% in the 4th quarter. State Street Corp now owns 49,959,850 shares of the basic materials company's stock valued at $4,988,491,000 after buying an additional 480,223 shares in the last quarter. Van ECK Associates Corp grew 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 buying an additional 5,643,496 shares in the last quarter. Geode Capital Management LLC grew its holdings in Newmont by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 27,011,084 shares of the basic materials company's stock valued at $2,738,756,000 after buying an additional 946,824 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Newmont in the fourth quarter valued at about $1,443,128,000. 68.85% of the stock is owned by institutional investors.

Key Headlines Impacting Newmont

Here are the key news stories impacting Newmont this week:

• Positive Sentiment: Newmont received major regulatory approvals from British Columbia for its Red Chris Block Cave project, a key milestone that supports a transition from open-pit mining to block caving and extends the mine life into the mid-2040s. The approval improves visibility on future production and could support the stock by advancing Newmont toward a final investment decision later this year. Article Title
• Positive Sentiment: Newmont continues to be viewed as a core name in gold mining, and broader strength in gold/mining shares may be helping sentiment around the stock. This can provide support even when company-specific news is limited. Article Title
• Neutral Sentiment: BNP Paribas Exane lowered its price target on Newmont to $111 from $128 while keeping a neutral rating. That is still above the current share price, but the cut may temper near-term enthusiasm. Article Title
• Negative Sentiment: Reports say Newmont’s Cadia mine was halted after an earthquake, raising concerns about temporary production disruption. Any prolonged shutdown could weigh on output and sentiment until Newmont clarifies the impact. Article Title

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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