Newmont (NYSE:NEM) Price Target Cut to $120.00 by Analysts at UBS Group

Key Points

• UBS Group cut Newmont’s price target from $140 to $120 while keeping a buy rating, implying about 30% upside from the prior close.
• Newmont shares were down 2.7% to $91.99 in Tuesday trading, with the stock sitting well below its 50-day and 200-day moving averages.
• The company recently posted better-than-expected quarterly results, including EPS of $2.90 versus $2.07 expected and revenue of $7.31 billion, up 45.8% year over year.

Newmont (NYSE:NEM - Get Free Report) had its price objective decreased by equities researchers at UBS Group from $140.00 to $120.00 in a research report issued on Tuesday,MarketScreener reports. The brokerage currently has a "buy" rating on the basic materials company's stock. UBS Group's price target points to a potential upside of 30.45% from the company's previous close.

A number of other research firms have also commented on NEM. Scotiabank lowered their price target on Newmont from $152.00 to $151.00 and set a "sector outperform" rating for the company in a research report on Friday, March 20th. Wall Street Zen lowered Newmont from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 30th. BMO Capital Markets cut their price target on shares of Newmont from $145.00 to $135.00 and set an "outperform" rating on the stock in a report on Tuesday, June 23rd. Zacks Research raised Newmont from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 15th. Finally, Canaccord Genuity Group lifted their target price on shares of Newmont from $150.00 to $160.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $139.88.

Newmont Trading Down 2.7%

Shares of NEM stock traded down $2.52 during trading hours on Tuesday, hitting $91.99. 862,520 shares of the company's stock traded hands, compared to its average volume of 9,391,316. The company has a quick ratio of 2.17, a current ratio of 2.44 and a debt-to-equity ratio of 0.15. Newmont has a 12 month low of $55.37 and a 12 month high of $134.88. The stock has a market cap of $98.20 billion, a PE ratio of 12.00, a price-to-earnings-growth ratio of 1.59 and a beta of 0.42. The stock's 50 day simple moving average is $107.56 and its 200 day simple moving average is $110.94.

Newmont (NYSE:NEM - Get Free Report) last released its quarterly earnings results on Thursday, April 23rd. The basic materials company reported $2.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.07 by $0.83. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The firm had revenue of $7.31 billion during the quarter, compared to analyst estimates of $6.83 billion. During the same quarter last year, the business earned $1.25 EPS. The company's revenue was up 45.8% compared to the same quarter last year. On average, sell-side analysts anticipate that Newmont will post 9.91 EPS for the current year.

Insider Buying and Selling at Newmont

In other news, insider David John Thornton sold 2,296 shares of the company's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $110.11, for a total value of $252,812.56. Following the completion of the sale, the insider owned 23,163 shares of the company's stock, valued at approximately $2,550,477.93. This represents a 9.02% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Natascha Viljoen sold 3,882 shares of Newmont stock in a transaction on Monday, June 1st. The stock was 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 in the company, valued at approximately $15,060,654.68. The trade was a 2.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 28,556 shares of company stock valued at $3,120,276. Insiders own 0.06% of the company's stock.

Institutional Investors Weigh In On Newmont

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its stake in shares of Newmont by 15.7% in the fourth quarter. Brighton Jones LLC now owns 13,606 shares of the basic materials company's stock worth $506,000 after purchasing an additional 1,847 shares during the last quarter. Woodline Partners LP lifted its holdings in Newmont by 40.7% in the 1st quarter. Woodline Partners LP now owns 96,182 shares of the basic materials company's stock worth $4,644,000 after buying an additional 27,813 shares during the period. Sivia Capital Partners LLC purchased a new position in shares of Newmont during the second quarter valued at approximately $240,000. Cerity Partners LLC lifted its stake in Newmont by 108.9% in the second quarter. Cerity Partners LLC now owns 125,355 shares of the basic materials company's stock worth $7,303,000 after acquiring an additional 65,342 shares during the period. Finally, NewEdge Advisors LLC increased its position in Newmont by 8.5% during the 2nd quarter. NewEdge Advisors LLC now owns 48,982 shares of the basic materials company's stock valued at $2,854,000 after purchasing an additional 3,856 shares during the period. 68.85% of the stock is currently owned by institutional investors.

Newmont Company Profile

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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