Newmont (NYSE:NEM) Announces Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• Newmont beat quarterly earnings expectations, reporting EPS of $2.10 versus the $1.99 consensus estimate, along with a strong return on equity of 27.84% and net margin of 33.87%.
• The stock fell 1.2% on the day to $94.57 despite the earnings beat, trading below both its 50-day moving average of $100.68 and 200-day moving average of $110.11.
• Analysts remain generally positive, with Newmont carrying a Moderate Buy rating overall, though several firms recently cut price targets and one downgraded the stock to hold.

Newmont (NYSE:NEM - Get Free Report) posted its quarterly earnings results on Thursday. The basic materials company reported $2.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.99 by $0.11, Zacks reports. Newmont had a return on equity of 27.84% and a net margin of 33.87%.

Newmont Stock Down 1.2%

Shares of NYSE:NEM traded down $1.18 during midday trading on Thursday, reaching $94.57. The company's stock had a trading volume of 7,108,515 shares, compared to its average volume of 9,236,252. Newmont has a 12-month low of $59.96 and a 12-month high of $134.88. The firm has a market capitalization of $100.95 billion, a P/E ratio of 12.27, a PEG ratio of 1.10 and a beta of 0.46. The firm has a 50 day moving average of $100.68 and a 200-day moving average of $110.11. The company has a quick ratio of 2.17, a current ratio of 2.44 and a debt-to-equity ratio of 0.15.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Weiss Ratings lowered Newmont from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, June 17th. Royal Bank Of Canada dropped their target price on shares of Newmont from $140.00 to $135.00 and set an "outperform" rating for the company in a report on Thursday, July 9th. Canadian Imperial Bank of Commerce set a $175.00 price target on Newmont and gave the company an "outperform" rating in a report on Monday, June 1st. National Bank Financial lowered their price target on Newmont from $140.00 to $125.00 and set a "sector perform" rating for the company in a research report on Tuesday, July 14th. Finally, BMO Capital Markets cut their price objective on Newmont from $145.00 to $135.00 and set an "outperform" rating on the stock in a research report on Tuesday, June 23rd. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $136.26.

Insider Buying and Selling at Newmont

In other Newmont news, CEO Natascha Viljoen sold 3,882 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $105.32, for a total transaction of $408,852.24. Following the completion of the transaction, the chief executive officer owned 142,999 shares of the company's stock, valued at approximately $15,060,654.68. This trade represents a 2.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David John Thornton sold 2,296 shares of Newmont stock in a transaction that occurred 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 transaction, 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 ownership of the stock. 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 have sold a total of 28,556 shares of company stock worth $3,058,146 in the last ninety days. 0.06% of the stock is owned by company insiders.

Institutional Trading of Newmont

A number of institutional investors and hedge funds have recently bought and sold shares of NEM. Swiss RE Ltd. bought a new stake in shares of Newmont in the 4th quarter worth $26,000. JPL Wealth Management LLC bought a new position in shares of Newmont during the third quarter valued at $27,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Newmont during the fourth quarter valued at $42,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Newmont during the 4th quarter valued at about $43,000. Finally, Bank of Jackson Hole Trust lifted its position in Newmont by 130.0% during the fourth quarter. Bank of Jackson Hole Trust now owns 575 shares of the basic materials company's stock valued at $57,000 after purchasing an additional 325 shares during the period. 68.85% of the stock is currently owned by institutional investors.

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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