Newmont (NYSE:NEM) Downgraded to "Hold" Rating by Zacks Research

Key Points

• Newmont has been downgraded from a "strong-buy" rating to a "hold" rating by Zacks Research amid changing market sentiments.
• Despite the downgrade, a mix of analysts continues to show support for Newmont, with several firms issuing high target prices and ratings such as "buy" and "outperform."
• Newmont reported strong quarterly earnings with a 20.8% year-over-year revenue increase, posting an EPS of $1.43, surpassing analysts' expectations.

Zacks Research lowered shares of Newmont (NYSE:NEM - Free Report) from a strong-buy rating to a hold rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other equities analysts also recently weighed in on NEM. UBS Group increased their target price on Newmont from $60.00 to $68.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Wall Street Zen upgraded Newmont from a "hold" rating to a "buy" rating in a research report on Friday, May 30th. National Bank Financial upgraded Newmont from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 25th. Stifel Canada upgraded Newmont to a "strong-buy" rating in a report on Tuesday, July 8th. Finally, BNP Paribas downgraded Newmont from a "strong-buy" rating to a "hold" rating in a report on Thursday. Four analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Newmont presently has a consensus rating of "Moderate Buy" and an average target price of $65.15.

Newmont Trading Down 0.4%

NYSE NEM traded down $0.33 during trading hours on Thursday, hitting $75.84. 10,094,163 shares of the company's stock were exchanged, compared to its average volume of 7,911,651. The business's 50 day moving average is $65.96 and its 200-day moving average is $56.27. Newmont has a 12-month low of $36.86 and a 12-month high of $77.30. The firm has a market capitalization of $83.30 billion, a P/E ratio of 13.62, a price-to-earnings-growth ratio of 0.92 and a beta of 0.33. 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 earnings results on Thursday, July 24th. The basic materials company reported $1.43 earnings per share 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 firm had revenue of $5.32 billion for the quarter, compared to the consensus estimate of $4.70 billion. During the same period in the prior year, the business posted $0.72 earnings per share. The firm's revenue for the quarter was up 20.8% compared to the same quarter last year. As a group, analysts anticipate that Newmont will post 3.45 EPS for the current fiscal year.

Newmont Dividend Announcement

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

Insider Activity at Newmont

In related news, Director Bruce R. Brook sold 2,077 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $74.59, for a total transaction of $154,923.43. Following the sale, the director directly owned 38,949 shares in the company, valued at approximately $2,905,205.91. This trade represents a 5.06% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Brian Tabolt sold 7,015 shares of the firm's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $68.02, for a total value of $477,160.30. Following the sale, the chief accounting officer owned 32,615 shares in the company, valued at approximately $2,218,472.30. The trade was a 17.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 19,246 shares of company stock worth $1,253,559. 0.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Newmont

A number of hedge funds have recently bought and sold shares of the business. Hemington Wealth Management boosted its position 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 buying an additional 170 shares during the last quarter. IVC Wealth Advisors LLC boosted its position 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 buying an additional 173 shares during the last quarter. L2 Asset Management LLC boosted its position in Newmont by 3.6% in the 2nd quarter. L2 Asset Management LLC now owns 4,987 shares of the basic materials company's stock valued at $291,000 after buying an additional 174 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. boosted its position in 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 valued at $101,000 after buying an additional 185 shares during the last quarter. Finally, Aaron Wealth Advisors LLC boosted its position in Newmont by 4.4% in the 2nd quarter. Aaron Wealth Advisors LLC now owns 4,460 shares of the basic materials company's stock valued at $260,000 after buying an additional 190 shares during the last quarter. 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.