Newmont (NYSE:NEM) Hits New 12-Month High - Time to Buy?

Key Points

• Newmont Corporation's stock reached a new 12-month high of $75.45, closing at $74.86 with significant trading volume of 853,953 shares.
• Numerous upgrades from brokerages have led to a consensus rating of "Moderate Buy" and an average price target of $65.15 for Newmont's shares.
• The company reported strong earnings with an EPS of $1.43 for the quarter, significantly exceeding the $0.95 consensus estimate, and announced a quarterly dividend of $0.25.

Shares of Newmont Corporation (NYSE:NEM - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $75.45 and last traded at $74.86, with a volume of 853953 shares trading hands. The stock had previously closed at $74.40.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on NEM. National Bank Financial raised Newmont from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 25th. Macquarie reissued a "neutral" rating and issued a $72.00 price target on shares of Newmont in a research note on Monday. Stifel Canada raised Newmont to a "strong-buy" rating in a research note on Tuesday, July 8th. Raymond James Financial increased their price target on Newmont from $67.00 to $69.00 and gave the company an "outperform" rating in a research note on Monday, July 28th. Finally, Wall Street Zen raised Newmont from a "hold" rating to a "buy" rating in a research note on Friday, May 30th. Four investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $65.15.

Newmont Stock Up 1.7%

The firm has a 50 day moving average of $64.21 and a 200 day moving average of $55.27. The firm has a market cap of $83.09 billion, a price-to-earnings ratio of 13.57, a PEG ratio of 0.88 and a beta of 0.33. The company has a quick ratio of 1.91, a current ratio of 2.23 and a debt-to-equity ratio of 0.23.

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

Newmont Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Thursday, September 4th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, September 4th. Newmont's dividend payout ratio (DPR) is 17.95%.

Insider Buying and Selling at Newmont

In other Newmont news, CAO Brian Tabolt sold 7,015 shares of the firm's stock in a transaction that occurred 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 owned 32,615 shares of the company's stock, valued at approximately $2,218,472.30. This trade represents a 17.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Bruce R. Brook sold 2,077 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $63.66, for a total value of $132,221.82. Following the completion of the sale, the director directly owned 41,026 shares of the company's stock, valued at $2,611,715.16. This trade represents a 4.82% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 17,169 shares of company stock valued at $1,098,636. Company insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Newmont

Hedge funds have recently added to or reduced their stakes in the company. Concord Wealth Partners grew its stake in Newmont by 534.7% in the second quarter. Concord Wealth Partners now owns 457 shares of the basic materials company's stock valued at $27,000 after acquiring an additional 385 shares during the period. Evermay Wealth Management LLC lifted its holdings in shares of Newmont by 408.2% in the second quarter. Evermay Wealth Management LLC now owns 498 shares of the basic materials company's stock valued at $29,000 after purchasing an additional 400 shares in the last quarter. SOA Wealth Advisors LLC. lifted its holdings in shares of Newmont by 64.0% in the first quarter. SOA Wealth Advisors LLC. now owns 515 shares of the basic materials company's stock valued at $25,000 after purchasing an additional 201 shares in the last quarter. CoreFirst Bank & Trust bought a new position in shares of Newmont in the second quarter valued at approximately $32,000. Finally, Cloud Capital Management LLC bought a new position in shares of Newmont in the first quarter valued at approximately $26,000. Institutional investors and hedge funds own 68.85% of the company's stock.

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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