Royal Bank Of Canada Upgrades Newmont (NYSE:NEM) to "Outperform"

Key Points

• Newmont has been upgraded to an "outperform" rating by Royal Bank of Canada, with a new price target of $95.00, reflecting a potential upside of 25.07% from its previous close.
• The company reported impressive quarterly earnings of $1.43 per share, exceeding analysts' expectations of $0.95, alongside a revenue increase of 20.8% year-over-year.
• Currently, Newmont has a consensus rating of "Moderate Buy" with various analysts providing mixed ratings ranging from "Strong Buy" to "Sell".

Royal Bank Of Canada upgraded shares of Newmont (NYSE:NEM - Free Report) from a sector perform rating to an outperform rating in a report issued on Wednesday morning, MarketBeat.com reports. The brokerage currently has $95.00 target price on the basic materials company's stock, up from their prior target price of $66.00.

NEM has been the topic of several other research reports. National Bank Financial raised shares of Newmont from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 25th. CIBC set a $74.00 price objective on shares of Newmont and gave the company a "neutral" rating in a report on Tuesday, July 15th. Raymond James Financial lifted their price objective on shares of Newmont from $67.00 to $69.00 and gave the company an "outperform" rating in a report on Monday, July 28th. BNP Paribas downgraded shares of Newmont from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 4th. Finally, UBS Group upped their price objective on shares of Newmont from $60.00 to $68.00 and gave the company a "buy" rating in a report on Thursday, July 3rd. Four equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $67.38.

Newmont Price Performance

Shares of NYSE:NEM traded down $0.40 during midday trading on Wednesday, reaching $79.25. 8,282,397 shares of the company's stock were exchanged, compared to its average volume of 8,566,614. The company's 50 day simple moving average is $67.46 and its two-hundred day simple moving average is $57.05. The firm has a market capitalization of $87.05 billion, a PE ratio of 14.23, a price-to-earnings-growth ratio of 0.96 and a beta of 0.34. Newmont has a 12 month low of $36.86 and a 12 month high of $80.07. 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 announced its earnings results on Thursday, July 24th. The basic materials company reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.95 by $0.48. The business had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $4.70 billion. Newmont had a net margin of 30.50% and a return on equity of 17.86%. The firm's revenue for the quarter was up 20.8% on a year-over-year basis. During the same quarter last year, the company posted $0.72 EPS. Equities research analysts expect that Newmont will post 3.45 earnings per share for the current fiscal year.

Newmont Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Investors 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 currently 17.95%.

Insider Buying and Selling at Newmont

In other Newmont news, EVP Peter Toth sold 3,000 shares of the firm's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $63.66, for a total transaction of $190,980.00. Following the transaction, the executive vice president directly owned 58,736 shares in the company, valued at approximately $3,739,133.76. This trade represents a 4.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Bruce R. Brook sold 2,077 shares of the firm's stock in a transaction 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 sale, the director directly owned 38,949 shares of the company's stock, valued at approximately $2,905,205.91. This represents a 5.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 19,246 shares of company stock worth $1,253,559. Corporate insiders own 0.05% 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. Norges Bank bought a new stake in Newmont in the second quarter worth $919,170,000. Nuveen LLC purchased a new stake in Newmont in the first quarter worth about $306,507,000. Pacer Advisors Inc. increased its position in Newmont by 4,203.5% in the first quarter. Pacer Advisors Inc. now owns 5,376,551 shares of the basic materials company's stock worth $259,580,000 after buying an additional 5,251,616 shares in the last quarter. Invesco Ltd. grew its position in shares of Newmont by 45.0% during the second quarter. Invesco Ltd. now owns 15,587,917 shares of the basic materials company's stock worth $908,152,000 after purchasing an additional 4,839,447 shares in the last quarter. Finally, Boston Partners grew its position in shares of Newmont by 4,090.7% during the second quarter. Boston Partners now owns 4,643,057 shares of the basic materials company's stock worth $272,558,000 after purchasing an additional 4,532,263 shares in the last quarter. 68.85% of the stock is owned by hedge funds and other institutional investors.

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.