Newmont (NYSE:NEM) Cut to "Hold" at Macquarie

Key Points

• Newmont's stock rating has been downgraded from "strong-buy" to "hold" by Macquarie, reflecting a change in analyst sentiment regarding its performance.
• Despite the downgrade, other analysts have varying opinions, with Scotiabank and UBS raising their price targets, indicating a consensus rating of "Moderate Buy" and an average target price of $65.15.
• Newmont reported a strong earnings performance with $1.43 EPS for the last quarter, exceeding expectations and showing significant revenue growth of 20.8% year-over-year.

Macquarie downgraded shares of Newmont (NYSE:NEM - Free Report) from a strong-buy rating to a hold rating in a report published on Tuesday,Zacks.com reports.

Several other analysts also recently issued reports on NEM. Raymond James Financial upped their price target on Newmont from $67.00 to $69.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. The Goldman Sachs Group restated a "neutral" rating and set a $60.90 target price on shares of Newmont in a research note on Tuesday, July 8th. National Bankshares upgraded Newmont from a "sector perform" rating to an "outperform" rating in a research note on Friday, July 25th. Wall Street Zen upgraded Newmont from a "hold" rating to a "buy" rating in a research note on Friday, May 30th. Finally, UBS Group increased their target price on Newmont from $60.00 to $68.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. Four investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $65.15.

Newmont Stock Up 1.7%

Shares of NEM traded up $1.26 during trading hours on Tuesday, hitting $76.14. 8,676,401 shares of the company were exchanged, compared to its average volume of 7,931,247. The company has a market cap of $83.64 billion, a PE ratio of 13.67, a PEG ratio of 0.92 and a beta of 0.34. The firm's 50 day moving average is $65.61 and its 200-day moving average is $56.00. Newmont has a 52 week low of $36.86 and a 52 week high of $77.30. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.91 and a current ratio of 2.23.

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

Newmont Announces Dividend

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

Insider Buying and Selling at Newmont

In other Newmont news, EVP Peter Toth sold 3,000 shares of the company's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $63.66, for a total value of $190,980.00. Following the completion of the transaction, the executive vice president owned 58,736 shares of the company's stock, valued at $3,739,133.76. This represents a 4.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Bruce R. Brook sold 2,077 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $74.59, for a total value of $154,923.43. Following the completion of the transaction, the director directly owned 38,949 shares of the company's stock, valued at approximately $2,905,205.91. This trade represents a 5.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 19,246 shares of company stock valued at $1,253,559 in the last quarter. Corporate insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Newmont

Several large investors have recently added to or reduced their stakes in the company. Hemington Wealth Management raised its holdings in Newmont by 17.6% in the 2nd quarter. Hemington Wealth Management now owns 1,135 shares of the basic materials company's stock valued at $66,000 after acquiring an additional 170 shares in the last quarter. IVC Wealth Advisors LLC raised its holdings in Newmont by 1.3% in the 2nd quarter. IVC Wealth Advisors LLC now owns 13,947 shares of the basic materials company's stock valued at $813,000 after acquiring an additional 173 shares in the last quarter. L2 Asset Management LLC raised its holdings in shares of Newmont by 3.6% in the 2nd quarter. L2 Asset Management LLC now owns 4,987 shares of the basic materials company's stock worth $291,000 after buying an additional 174 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. raised its holdings in shares of Newmont by 11.9% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,737 shares of the basic materials company's stock worth $101,000 after buying an additional 185 shares in the last quarter. Finally, Aaron Wealth Advisors LLC raised its holdings in shares of Newmont by 4.4% in the 2nd quarter. Aaron Wealth Advisors LLC now owns 4,460 shares of the basic materials company's stock worth $260,000 after buying an additional 190 shares in the last quarter. Institutional investors and hedge funds own 68.85% of the company's stock.

Newmont Company Profile

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.