Newmont (NYSE:NEM) Reaches New 52-Week High - Should You Buy?

Key Points

• Newmont Corporation's stock reached a new 52-week high of $72.79 on Wednesday, with a closing price of $72.49 after trading over 10 million shares.
• The company reported strong quarterly earnings of $1.43 per share, significantly beating estimates of $0.95, with revenues of $5.32 billion, a year-over-year increase of 20.8%.
• Newmont recently declared a quarterly dividend of $0.25 per share, translating to an annualized yield of 1.4% and a dividend payout ratio of 17.95%.

Newmont Corporation (NYSE:NEM - Get Free Report)'s stock price reached a new 52-week high on Wednesday . The stock traded as high as $72.79 and last traded at $72.49, with a volume of 10707992 shares traded. The stock had previously closed at $71.10.

Analyst Upgrades and Downgrades

NEM has been the subject of several recent analyst reports. Wall Street Zen upgraded shares of Newmont from a "hold" rating to a "buy" rating in a research report on Friday, May 30th. Raymond James Financial raised their price objective on shares of Newmont from $67.00 to $69.00 and gave the stock an "outperform" rating in a research report on Monday, July 28th. The Goldman Sachs Group restated a "neutral" rating and set a $60.90 price objective on shares of Newmont in a research report on Tuesday, July 8th. Scotiabank raised their price objective on shares of Newmont from $69.00 to $72.00 and gave the stock a "sector perform" rating in a research report on Monday, July 28th. Finally, National Bankshares upgraded shares of Newmont from a "sector perform" rating to an "outperform" rating in a research report on Friday, July 25th. Four research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Newmont presently has an average rating of "Moderate Buy" and an average target price of $64.58.

Newmont Trading Up 2.0%

The firm has a market capitalization of $79.63 billion, a price-to-earnings ratio of 13.01, a PEG ratio of 0.84 and a beta of 0.30. The business's 50-day simple moving average is $63.00 and its two-hundred day simple moving average is $54.46. The company has a quick ratio of 1.91, a current ratio of 2.23 and a debt-to-equity ratio of 0.23.

Newmont (NYSE:NEM - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The basic materials company reported $1.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.95 by $0.48. Newmont had a net margin of 30.50% and a return on equity of 17.86%. The business had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $4.70 billion. During the same period last year, the business earned $0.72 earnings per share. The business's revenue for the quarter was up 20.8% on a year-over-year basis. Equities analysts forecast that Newmont Corporation will post 3.45 earnings per share for the current year.

Newmont Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Thursday, September 4th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, September 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.4%. Newmont's dividend payout ratio (DPR) is currently 17.95%.

Insider Activity at Newmont

In related news, EVP Peter Toth sold 3,000 shares of Newmont stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $54.09, for a total value of $162,270.00. Following the completion of the transaction, the executive vice president owned 77,526 shares in the company, valued at approximately $4,193,381.34. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Bruce R. Brook sold 2,077 shares of Newmont stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $63.66, for a total transaction of $132,221.82. Following the completion of the transaction, the director owned 41,026 shares of the company's stock, valued at $2,611,715.16. This trade represents a 4.82% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 22,246 shares of company stock worth $1,373,251. Corporate insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in NEM. SOA Wealth Advisors LLC. grew its holdings in shares of Newmont by 64.0% in the first quarter. SOA Wealth Advisors LLC. now owns 515 shares of the basic materials company's stock valued at $25,000 after purchasing an additional 201 shares in the last quarter. Cloud Capital Management LLC acquired a new position in shares of Newmont in the first quarter valued at approximately $26,000. Colonial Trust Advisors lifted its stake in Newmont by 315.4% in the first quarter. Colonial Trust Advisors now owns 565 shares of the basic materials company's stock worth $27,000 after acquiring an additional 429 shares during the last quarter. Concord Wealth Partners lifted its stake in Newmont by 534.7% in the second quarter. Concord Wealth Partners now owns 457 shares of the basic materials company's stock worth $27,000 after acquiring an additional 385 shares during the last quarter. Finally, Evermay Wealth Management LLC grew its holdings in Newmont by 408.2% during the 2nd quarter. Evermay Wealth Management LLC now owns 498 shares of the basic materials company's stock worth $29,000 after acquiring an additional 400 shares in the last quarter. Institutional investors and hedge funds own 68.85% of the company's stock.

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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