Newmont (NYSE:NEM) Raised to Buy at TD

Key Points

• TD upgraded Newmont from hold to buy and set a $127 price target, implying about 34% upside from the current share price.
• Newmont’s latest quarterly results were better than expected, with EPS of $2.90 versus the $2.07 consensus and revenue of $7.31 billion topping estimates.
• Analyst sentiment is generally positive overall, with MarketBeat showing a Moderate Buy consensus and an average price target of $136.64, even as some analysts trimmed their targets slightly.

Newmont (NYSE:NEM - Get Free Report) was upgraded by equities researchers at TD from a "hold" rating to a "buy" rating in a research note issued on Tuesday,BayStreet.CA reports. The firm currently has a $127.00 price target on the basic materials company's stock, down from their previous price target of $129.00. TD's price target would indicate a potential upside of 34.49% from the stock's current price.

A number of other analysts have also recently issued reports on NEM. Barclays assumed coverage on Newmont in a research report on Thursday, May 21st. They issued an "overweight" rating and a $133.00 price objective for the company. Royal Bank Of Canada reduced their target price on Newmont from $140.00 to $135.00 and set an "outperform" rating on the stock in a report on Thursday, July 9th. Jefferies Financial Group cut their target price on shares of Newmont from $158.00 to $146.00 and set a "buy" rating on the stock in a research report on Monday, July 6th. Raymond James Financial reduced their price target on Newmont from $139.00 to $137.00 and set an "outperform" rating on the stock in a report on Tuesday, June 30th. Finally, TD Securities reiterated a "hold" rating and issued a $129.00 target price on shares of Newmont in a report on Monday, April 27th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, Newmont has a consensus rating of "Moderate Buy" and an average price target of $136.64.

Newmont Stock Up 1.4%

NYSE NEM traded up $1.33 during trading hours on Tuesday, reaching $94.43. 4,605,812 shares of the company's stock were exchanged, compared to its average volume of 9,257,697. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.17 and a current ratio of 2.44. Newmont has a one year low of $55.37 and a one year high of $134.88. The company's 50-day moving average is $103.98 and its two-hundred day moving average is $110.59. The company has a market capitalization of $100.81 billion, a price-to-earnings ratio of 12.26, a price-to-earnings-growth ratio of 1.08 and a beta of 0.46.

Newmont (NYSE:NEM - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The basic materials company reported $2.90 EPS for the quarter, beating the consensus estimate of $2.07 by $0.83. The business had revenue of $7.31 billion for the quarter, compared to analysts' expectations of $6.83 billion. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The firm's revenue was up 45.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.25 EPS. On average, analysts forecast that Newmont will post 9.32 EPS for the current fiscal year.

Insiders Place Their Bets

In other Newmont news, EVP Peter Toth sold 3,000 shares of Newmont stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $92.38, for a total value of $277,140.00. Following the sale, the executive vice president owned 43,315 shares of the company's stock, valued at approximately $4,001,439.70. The trade was a 6.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Natascha Viljoen sold 3,882 shares of the business's stock in a transaction dated Monday, June 1st. The shares were 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 ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 28,556 shares of company stock worth $3,058,146 over the last 90 days. Company insiders own 0.06% of the company's stock.

Institutional Trading of Newmont

Several hedge funds have recently made changes to their positions in the company. GoalVest Advisory LLC purchased a new stake in Newmont during the fourth quarter valued at about $25,000. Pinnacle Bancorp Inc. bought a new position in Newmont in the 1st quarter worth approximately $25,000. Cedar Mountain Advisors LLC bought a new position in Newmont in the 1st quarter worth approximately $25,000. Swiss RE Ltd. purchased a new position in Newmont in the 4th quarter valued at approximately $26,000. Finally, Cornerstone Planning Group LLC raised its holdings in Newmont by 312.1% during the 4th quarter. Cornerstone Planning Group LLC now owns 272 shares of the basic materials company's stock valued at $27,000 after acquiring an additional 206 shares during the period. 68.85% of the stock is currently owned by institutional investors.

About Newmont

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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