Newmont (NYSE:NEM) Reaches New 1-Year High - Here's Why

Key Points

• Newmont Corporation reached a new 52-week high of $80.97 during trading, closing at $80.87 with significant volume of 2,535,381 shares.
• Analyst ratings for Newmont vary, with Zacks downgrading it to "hold", while UBS and Scotiabank increased their price targets, reflecting mixed sentiments in the market.
• The company recently announced a quarterly dividend of $0.25 per share, yielding 1.2%, with a payout ratio of 17.95%.

Newmont Corporation (NYSE:NEM - Get Free Report)'s stock price reached a new 52-week high on Friday . The company traded as high as $80.97 and last traded at $80.87, with a volume of 2535381 shares. The stock had previously closed at $78.32.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on NEM. Royal Bank Of Canada raised shares of Newmont from a "sector perform" rating to an "outperform" rating and upped their price objective for the stock from $66.00 to $95.00 in a research note on Wednesday, September 10th. National Bank Financial raised shares of Newmont from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 25th. Wall Street Zen raised shares of Newmont from a "hold" rating to a "buy" rating in a research note on Friday, May 30th. Zacks Research lowered shares of Newmont from a "strong-buy" rating to a "hold" rating in a research note on Thursday, September 4th. Finally, The Goldman Sachs Group upped their price objective on shares of Newmont from $63.10 to $77.30 and gave the stock a "neutral" rating in a research note on Thursday, September 11th. Four investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Newmont currently has a consensus rating of "Moderate Buy" and an average target price of $72.31.

Newmont Trading Up 1.9%

The firm has a market capitalization of $93.73 billion, a PE ratio of 15.31, a price-to-earnings-growth ratio of 0.96 and a beta of 0.33. The company's 50-day simple moving average is $69.93 and its 200 day simple moving average is $58.80. 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 released its quarterly earnings results on Thursday, July 24th. The basic materials company reported $1.43 EPS for the quarter, beating the consensus estimate of $0.95 by $0.48. The business had revenue of $5.32 billion during the quarter, compared to analyst estimates of $4.70 billion. Newmont had a net margin of 30.50% and a return on equity of 17.86%. The company's quarterly revenue was up 20.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.72 earnings per share. As a group, sell-side analysts expect that Newmont Corporation will post 3.45 EPS for the current year.

Newmont Dividend Announcement

The business 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 dividend of $0.25 per share. The ex-dividend date is Thursday, September 4th. This represents a $1.00 annualized dividend and a dividend yield of 1.2%. Newmont's dividend payout ratio is 17.95%.

Insider Activity

In other news, CAO Brian Tabolt sold 7,015 shares of the company's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $68.02, for a total transaction of $477,160.30. Following the transaction, the chief accounting officer owned 32,615 shares in the company, valued at $2,218,472.30. This represents a 17.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Peter Toth sold 3,000 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $63.66, for a total transaction of $190,980.00. Following the transaction, the executive vice president 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 disclosure for this sale can be found here. Insiders have sold a total of 19,246 shares of company stock worth $1,253,559 over the last 90 days. 0.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Newmont

Several hedge funds have recently modified their holdings of the stock. Brighton Jones LLC increased its holdings in Newmont by 15.7% in the 4th quarter. Brighton Jones LLC now owns 13,606 shares of the basic materials company's stock worth $506,000 after buying an additional 1,847 shares during the period. State of Wyoming acquired a new position in Newmont in the 4th quarter worth approximately $179,000. Vise Technologies Inc. increased its holdings in Newmont by 69.5% in the 4th quarter. Vise Technologies Inc. now owns 16,898 shares of the basic materials company's stock worth $629,000 after buying an additional 6,928 shares during the period. GTS Securities LLC increased its holdings in Newmont by 104.5% in the 4th quarter. GTS Securities LLC now owns 7,173 shares of the basic materials company's stock worth $267,000 after buying an additional 164,988 shares during the period. Finally, Bernard Wealth Management Corp. acquired a new position in Newmont in the 4th quarter worth approximately $53,000. 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.