Newmont (NYSE:NEM) Hits New 12-Month High - Still a Buy?

Key Points

• Newmont Corporation's stock reached a new 52-week high of $88.83, with strong trading volume and a market cap of $97.59 billion.
• Analysts' ratings for Newmont show a mix, with three strong buys, nine buys, and an average target price of $74.18, indicating overall optimism about the stock's performance.
• The company has declared a quarterly dividend of $0.25 per share, representing a yield of 1.1%, and a dividend payout ratio of 17.95%.

Newmont Corporation (NYSE:NEM - Get Free Report) hit a new 52-week high during trading on Monday . The company traded as high as $88.23 and last traded at $88.83, with a volume of 561100 shares traded. The stock had previously closed at $86.86.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on NEM shares. Zacks Research downgraded Newmont from a "strong-buy" rating to a "hold" rating in a research report on Thursday, September 4th. National Bank Financial upgraded Newmont from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 25th. UBS Group upped their target price on shares of Newmont from $70.00 to $92.00 and gave the stock a "buy" rating in a research note on Friday, September 19th. BNP Paribas Exane lifted their price objective on Newmont from $66.00 to $92.00 and gave the company an "outperform" rating in a research note on Monday, September 15th. Finally, Stifel Canada raised Newmont to a "strong-buy" rating in a report on Tuesday, July 8th. Three investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $74.18.

Newmont Stock Performance

The company has a market cap of $97.59 billion, a price-to-earnings ratio of 15.95, a P/E/G ratio of 0.97 and a beta of 0.34. The stock's 50 day moving average price is $74.37 and its 200 day moving average price is $61.27. The company has a current ratio of 2.23, a quick ratio of 1.91 and a debt-to-equity ratio of 0.23.

Newmont (NYSE:NEM - Get Free Report) last issued its earnings results on Thursday, July 24th. The basic materials company reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.95 by $0.48. The business had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $4.70 billion. Newmont had a return on equity of 17.86% and a net margin of 30.50%.The company's revenue for the quarter was up 20.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.72 EPS. On average, analysts expect that Newmont Corporation will post 3.45 EPS for the current fiscal year.

Newmont Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, September 29th. Investors of record on Thursday, September 4th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Thursday, September 4th. Newmont's dividend payout ratio is currently 17.95%.

Insider Activity

In other news, Director Bruce R. Brook sold 2,080 shares of Newmont stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $84.99, for a total transaction of $176,779.20. Following the sale, the director owned 36,869 shares of the company's stock, valued at approximately $3,133,496.31. The trade was a 5.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Brian Tabolt sold 7,015 shares of the business's stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $68.02, for a total value of $477,160.30. Following the completion of the sale, the chief accounting officer directly owned 32,615 shares in the company, valued at $2,218,472.30. This represents a 17.70% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 16,249 shares of company stock valued at $1,132,065. 0.05% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Generate Investment Management Ltd boosted its stake in Newmont by 25.9% during the second quarter. Generate Investment Management Ltd now owns 378,975 shares of the basic materials company's stock worth $22,079,000 after buying an additional 77,865 shares in the last quarter. Bessemer Group Inc. boosted its position in Newmont by 13.2% in the 1st quarter. Bessemer Group Inc. now owns 11,791 shares of the basic materials company's stock valued at $569,000 after buying an additional 1,379 shares during the last quarter. Envestnet Portfolio Solutions Inc. acquired a new position in Newmont during the 1st quarter valued at about $423,000. Spire Wealth Management raised its position in shares of Newmont by 125.0% during the 1st quarter. Spire Wealth Management now owns 2,356 shares of the basic materials company's stock valued at $114,000 after acquiring an additional 1,309 shares during the last quarter. Finally, Bayforest Capital Ltd grew its position in shares of Newmont by 269.4% during the 1st quarter. Bayforest Capital Ltd now owns 8,829 shares of the basic materials company's stock worth $426,000 after buying an additional 6,439 shares during the period. 68.85% of the stock is owned by institutional investors.

About Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana.

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