Newmont Corporation (NYSE:NEM) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Newmont has a consensus analyst rating of “Moderate Buy”, based on coverage from 24 brokerages. The average 12-month price target is about $142.05.
• The company recently posted strong first-quarter results, with EPS of $2.90 beating estimates and revenue of $7.31 billion topping expectations. Revenue rose 45.8% year over year.
• Newmont also announced a quarterly dividend of $0.26 per share, payable June 22, which implies an annualized yield of about 0.9%. Meanwhile, insiders sold shares in recent months and institutional investors hold the majority of the stock.

Shares of Newmont Corporation (NYSE:NEM - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the twenty-four brokerages that are covering the stock, Marketbeat reports. Five research analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and two have issued a strong buy rating on the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $142.0524.

Several research firms have issued reports on NEM. TD upped their price objective on Newmont from $116.00 to $129.00 and gave the stock a "hold" rating in a report on Monday, April 27th. Argus lifted their target price on Newmont from $94.00 to $125.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Sanford C. Bernstein upgraded Newmont from a "market perform" rating to an "outperform" rating and boosted their target price for the stock from $121.00 to $157.00 in a research report on Friday, February 27th. National Bank Financial upped their price target on Newmont from $130.00 to $140.00 and gave the company a "sector perform" rating in a research note on Friday, April 24th. Finally, Wall Street Zen upgraded Newmont from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 16th.

Insider Buying and Selling at Newmont

In other Newmont news, insider David James Fry sold 18,394 shares of Newmont stock in a transaction on Monday, March 16th. The shares were sold at an average price of $111.45, for a total transaction of $2,050,011.30. Following the completion of the sale, the insider owned 17,147 shares of the company's stock, valued at approximately $1,911,033.15. The trade was a 51.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider David John Thornton sold 2,296 shares of the company's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $110.11, for a total transaction of $252,812.56. Following the sale, the insider owned 23,163 shares of the company's stock, valued at $2,550,477.93. The trade was a 9.02% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 43,068 shares of company stock valued at $4,769,475 in the last three months. Insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Newmont

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Apella Capital LLC boosted its position in shares of Newmont by 4.1% during the fourth quarter. Apella Capital LLC now owns 2,198 shares of the basic materials company's stock valued at $219,000 after buying an additional 86 shares during the period. New Wave Wealth Advisors LLC grew its stake in shares of Newmont by 1.3% during 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 buying an additional 88 shares during the last quarter. Novem Group grew its stake in shares of Newmont by 3.7% during the fourth quarter. Novem Group now owns 2,487 shares of the basic materials company's stock valued at $248,000 after buying an additional 88 shares during the last quarter. Norden Group LLC raised its holdings in shares of Newmont by 0.7% in the fourth quarter. Norden Group LLC now owns 12,367 shares of the basic materials company's stock worth $1,235,000 after buying an additional 90 shares during the period. Finally, Parkside Financial Bank & Trust raised its holdings in shares of Newmont by 1.4% in the fourth quarter. Parkside Financial Bank & Trust now owns 7,153 shares of the basic materials company's stock worth $714,000 after buying an additional 96 shares during the period. Institutional investors own 68.85% of the company's stock.

Newmont Stock Up 3.6%

Shares of NYSE:NEM opened at $111.49 on Wednesday. The company has a quick ratio of 2.17, a current ratio of 2.44 and a debt-to-equity ratio of 0.15. The firm has a market cap of $119.02 billion, a P/E ratio of 14.46 and a beta of 0.43. Newmont has a 12 month low of $51.80 and a 12 month high of $134.88. The company's 50-day moving average price is $110.94 and its two-hundred day moving average price is $108.60.

Newmont (NYSE:NEM - Get Free Report) last announced its 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. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The company had revenue of $7.31 billion during the quarter, compared to the consensus estimate of $6.83 billion. During the same period in the previous year, the firm posted $1.25 earnings per share. The company's revenue was up 45.8% on a year-over-year basis. As a group, research analysts forecast that Newmont will post 9.47 EPS for the current fiscal year.

Newmont Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 22nd. Investors of record on Wednesday, May 27th will be issued a $0.26 dividend. This represents a $1.04 annualized dividend and a yield of 0.9%. The ex-dividend date is Wednesday, May 27th. Newmont's dividend payout ratio is currently 13.49%.

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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