Newmont Corporation (NYSE:NEM) Sees Large Decline in Short Interest

Key Points

• Short interest fell sharply in March, down 14.8% to 18,103,460 shares (about 1.7% of the float), with a days-to-cover ratio of 1.3 based on average daily volume.
• EPS beat: Newmont reported $2.52 EPS vs. $1.81 consensus and revenue of $6.82B (vs. $6.18B), delivering a 31.25% net margin and strong year-over-year revenue growth.
• Dividend increase: Newmont raised its quarterly dividend to $0.26 (annualized $1.04), up from $0.25, implying a yield of roughly 0.9% and a payout ratio around 16.3%.

Newmont Corporation (NYSE:NEM - Get Free Report) was the target of a significant decrease in short interest during the month of March. As of March 31st, there was short interest totaling 18,103,460 shares, a decrease of 14.8% from the March 15th total of 21,256,668 shares. Approximately 1.7% of the company's stock are sold short. Based on an average daily trading volume, of 14,185,189 shares, the days-to-cover ratio is currently 1.3 days.

Newmont Stock Performance

Shares of Newmont stock traded up $3.09 on Friday, reaching $116.50. 6,790,237 shares of the stock were exchanged, compared to its average volume of 10,303,636. 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 has a twelve month low of $48.27 and a twelve month high of $134.88. The firm has a market capitalization of $125.81 billion, a price-to-earnings ratio of 18.23, a PEG ratio of 0.86 and a beta of 0.46. The business has a 50 day moving average price of $115.48 and a two-hundred day moving average price of $103.50.

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

Newmont Increases Dividend

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

Analyst Upgrades and Downgrades

Several analysts have commented on NEM shares. UBS Group decreased their price target on shares of Newmont from $150.00 to $140.00 and set a "buy" rating for the company in a research report on Friday, March 27th. DZ Bank raised Newmont to a "strong-buy" rating in a report on Monday, January 19th. Stifel Nicolaus raised their price target on Newmont from $120.00 to $175.00 and gave the stock a "buy" rating in a report on Tuesday, February 10th. Canaccord Genuity Group raised their price target on Newmont from $115.00 to $140.00 and gave the stock a "buy" rating in a report on Friday, January 23rd. Finally, Royal Bank Of Canada raised their price target on Newmont from $120.00 to $125.00 and gave the stock an "outperform" rating in a report on Tuesday, February 3rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $133.38.

Insider Activity

In other Newmont news, EVP Peter Toth sold 3,000 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $113.09, for a total transaction of $339,270.00. Following the completion of the sale, the executive vice president directly owned 52,315 shares of the company's stock, valued at approximately $5,916,303.35. This represents a 5.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider David James Fry sold 18,394 shares of the stock in a transaction dated 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 sale, the insider directly 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 24,394 shares of company stock valued at $2,713,281. Insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Brighton Jones LLC increased its position in shares of Newmont by 15.7% in the fourth quarter. Brighton Jones LLC now owns 13,606 shares of the basic materials company's stock valued at $506,000 after buying an additional 1,847 shares in the last quarter. Woodline Partners LP increased its position in shares of Newmont by 40.7% in the first quarter. Woodline Partners LP now owns 96,182 shares of the basic materials company's stock valued at $4,644,000 after buying an additional 27,813 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Newmont in the second quarter valued at approximately $240,000. Cerity Partners LLC increased its position in shares of Newmont by 108.9% in the second quarter. Cerity Partners LLC now owns 125,355 shares of the basic materials company's stock valued at $7,303,000 after buying an additional 65,342 shares in the last quarter. Finally, NewEdge Advisors LLC increased its position in shares of Newmont by 8.5% in the second quarter. NewEdge Advisors LLC now owns 48,982 shares of the basic materials company's stock valued at $2,854,000 after buying an additional 3,856 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.

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