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

Key Points

• Short interest in Newmont jumped by 19.7% in February to 22.4 million shares (about 2.1% of shares outstanding) with a days-to-cover ratio of 2.4, signaling increased bearish positioning.
• Newmont reported a strong quarter, beating estimates with $2.52 EPS vs. $1.81 expected and $6.82 billion revenue (up 20.6% year-over-year), and raised its quarterly dividend to $0.26 ($1.04 annualized).
• Analysts remain broadly positive—MarketBeat shows an average rating of Buy and an average price target of $134.15, although individual targets were revised both up and down by various firms.

Newmont Corporation (NYSE:NEM - Get Free Report) was the recipient of a significant increase in short interest during the month of February. As of February 27th, there was short interest totaling 22,395,669 shares, an increase of 19.7% from the February 12th total of 18,702,308 shares. Based on an average daily volume of 9,497,887 shares, the days-to-cover ratio is currently 2.4 days. Approximately 2.1% of the shares of the stock are sold short. Approximately 2.1% of the shares of the stock are sold short. Based on an average daily volume of 9,497,887 shares, the days-to-cover ratio is currently 2.4 days.

Hedge Funds Weigh In On Newmont

A number of hedge funds have recently made changes to their positions in NEM. Estate Counselors LLC acquired a new position in shares of Newmont during the 3rd quarter valued at $4,182,000. AustralianSuper Pty Ltd increased its holdings in Newmont by 124.8% in the 3rd quarter. AustralianSuper Pty Ltd now owns 330,250 shares of the basic materials company's stock valued at $27,843,000 after purchasing an additional 183,360 shares in the last quarter. Knights of Columbus Asset Advisors LLC raised its position in Newmont by 286.5% in the third quarter. Knights of Columbus Asset Advisors LLC now owns 60,499 shares of the basic materials company's stock valued at $5,101,000 after purchasing an additional 44,846 shares during the period. Robeco Institutional Asset Management B.V. raised its position in Newmont by 172.2% in the third quarter. Robeco Institutional Asset Management B.V. now owns 4,304,215 shares of the basic materials company's stock valued at $362,888,000 after purchasing an additional 2,723,044 shares during the period. Finally, Live Oak Investment Partners acquired a new position in shares of Newmont during the third quarter worth about $2,232,000. Institutional investors and hedge funds own 68.85% of the company's stock.

Analyst Ratings Changes

A number of research firms have weighed in on NEM. Canadian Imperial Bank of Commerce lowered their price objective on Newmont from $71.00 to $67.00 in a research note on Friday, February 27th. Jefferies Financial Group lifted their price target on Newmont from $158.00 to $162.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. National Bank Financial boosted their price target on shares of Newmont from $120.00 to $140.00 and gave the company an "outperform" rating in a research report on Wednesday, February 4th. Citigroup upped their price objective on shares of Newmont from $118.00 to $150.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Finally, DZ Bank upgraded shares of Newmont to a "strong-buy" rating in a research report on Monday, January 19th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $134.15.

Newmont Trading Up 0.7%

NYSE:NEM traded up $0.78 during mid-day trading on Tuesday, reaching $110.97. The company's stock had a trading volume of 7,069,929 shares, compared to its average volume of 9,644,471. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.29 and a quick ratio of 2.02. The stock has a market cap of $120.72 billion, a P/E ratio of 17.37, a P/E/G ratio of 0.85 and a beta of 0.39. The company's fifty day simple moving average is $118.89 and its two-hundred day simple moving average is $99.20. Newmont has a twelve month low of $42.93 and a twelve month high of $134.88.

Newmont (NYSE:NEM - Get Free Report) last posted 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. The company had revenue of $6.82 billion during the quarter, compared to the consensus estimate of $6.18 billion. Newmont had a net margin of 31.25% and a return on equity of 23.28%. The company's quarterly revenue was up 20.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.40 EPS. On average, equities analysts predict that Newmont will post 3.45 EPS for the current year.

Newmont Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Tuesday, March 3rd will be given a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a 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 is Tuesday, March 3rd. Newmont's dividend payout ratio (DPR) is currently 16.28%.

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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