Newmont (NYSE:NEM) Reaches New 12-Month High on Analyst Upgrade

Key Points

• Newmont Corporation's stock reached a new 52-week high after being upgraded by the Royal Bank of Canada, with a revised price target of $95.00.
• In the latest earnings report, Newmont reported $1.43 earnings per share, significantly exceeding the consensus estimate of $0.95, along with a revenue of $5.32 billion.
• The company has announced a quarterly dividend of $0.25 per share, yielding an annualized dividend of $1.00, with a dividend payout ratio of 17.95%.

Newmont Corporation (NYSE:NEM - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday after Royal Bank Of Canada upgraded the stock from a sector perform rating to an outperform rating. Royal Bank Of Canada now has a $95.00 price target on the stock, up from their previous price target of $66.00. Newmont traded as high as $78.49 and last traded at $78.14, with a volume of 2850367 shares traded. The stock had previously closed at $75.92.

A number of other equities analysts have also recently commented on the stock. National Bank Financial raised shares of Newmont from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 25th. Stifel Canada raised shares of Newmont to a "strong-buy" rating in a research note on Tuesday, July 8th. CIBC set a $74.00 price target on shares of Newmont and gave the stock a "neutral" rating in a research note on Tuesday, July 15th. Wall Street Zen raised shares of Newmont from a "hold" rating to a "buy" rating in a research note on Friday, May 30th. Finally, National Bankshares raised shares of Newmont from a "sector perform" rating to an "outperform" rating in a research note on Friday, July 25th. Four equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $67.38.

Insider Activity at Newmont

In other news, EVP Peter Toth sold 3,000 shares of the business's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $63.66, for a total value of $190,980.00. Following the completion of the sale, the executive vice president owned 58,736 shares in the company, valued at approximately $3,739,133.76. The trade was a 4.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Bruce R. Brook sold 2,077 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $74.59, for a total transaction of $154,923.43. Following the completion of the sale, the director owned 38,949 shares of the company's stock, valued at approximately $2,905,205.91. This represents a 5.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold 19,246 shares of company stock worth $1,253,559 in the last 90 days. 0.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Newmont

Several large investors have recently modified their holdings of the business. Bessemer Group Inc. grew its position in shares of Newmont by 13.2% in the 1st quarter. Bessemer Group Inc. now owns 11,791 shares of the basic materials company's stock worth $569,000 after buying an additional 1,379 shares during the last quarter. Envestnet Portfolio Solutions Inc. purchased a new stake in Newmont during the 1st quarter worth approximately $423,000. Spire Wealth Management grew its position in Newmont by 125.0% during the 1st quarter. Spire Wealth Management now owns 2,356 shares of the basic materials company's stock worth $114,000 after purchasing an additional 1,309 shares during the last quarter. Flagship Harbor Advisors LLC purchased a new stake in Newmont during the 1st quarter worth approximately $202,000. Finally, Two Sigma Investments LP grew its position in Newmont by 51.9% during the 4th quarter. Two Sigma Investments LP now owns 1,808,687 shares of the basic materials company's stock worth $67,319,000 after purchasing an additional 618,366 shares during the last quarter. Institutional investors own 68.85% of the company's stock.

Newmont Stock Performance

The company has a market cap of $85.30 billion, a PE ratio of 13.94, a P/E/G ratio of 0.91 and a beta of 0.34. The company has a current ratio of 2.23, a quick ratio of 1.91 and a debt-to-equity ratio of 0.23. The firm's 50-day simple moving average is $66.30 and its two-hundred day simple moving average is $56.41.

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. The company had revenue of $5.32 billion for the quarter, compared to the consensus estimate of $4.70 billion. Newmont had a net margin of 30.50% and a return on equity of 17.86%. Newmont's revenue was up 20.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.72 EPS. As a group, research analysts anticipate that Newmont Corporation will post 3.45 earnings per share for the current fiscal year.

Newmont Announces Dividend

The firm 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 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, September 4th. Newmont's dividend payout ratio is 17.95%.

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.

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