Newmont (NYSE:NEM) Shares Down 4.9% - Here's What Happened

Key Points

• Shares fell 4.9% to about $113.50 on Wednesday, with trading volume ~3.93M shares—down 62% from the average session volume of 10.32M.
• Newmont posted a strong quarter, beating estimates with $2.52 EPS vs. $1.81 expected and $6.82B in revenue (up 20.6% YoY), and raised its quarterly dividend to $0.26 ($1.04 annualized).
• Analysts' consensus is a Moderate Buy with a consensus price target of $133.91, though individual targets range roughly from $115 to $150.

Shares of Newmont Corporation (NYSE:NEM - Get Free Report) traded down 4.9% during trading on Wednesday . The stock traded as low as $113.84 and last traded at $113.4980. 3,925,353 shares traded hands during trading, a decline of 62% from the average session volume of 10,323,433 shares. The stock had previously closed at $119.30.

Wall Street Analyst Weigh In

Several research analysts have issued reports on NEM shares. UBS Group decreased their target price on shares of Newmont from $150.00 to $140.00 and set a "buy" rating for the company in a report on Friday, March 27th. Canaccord Genuity Group raised their price target on shares of Newmont from $115.00 to $140.00 and gave the company a "buy" rating in a research report on Friday, January 23rd. Macquarie Infrastructure boosted their price objective on shares of Newmont from $126.00 to $130.00 and gave the stock an "outperform" rating in a report on Friday, March 27th. Citigroup increased their target price on Newmont from $118.00 to $150.00 and gave the company a "buy" rating in a research note on Tuesday, March 3rd. Finally, BMO Capital Markets reduced their target price on Newmont from $145.00 to $140.00 and set an "outperform" rating for the company in a report on Friday, February 20th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $133.91.

Newmont Stock Performance

The business's fifty day moving average price is $115.46 and its 200-day moving average price is $103.37. The stock has a market cap of $123.28 billion, a PE ratio of 17.86, a P/E/G ratio of 0.88 and a beta of 0.46. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.02 and a current ratio of 2.29.

Newmont (NYSE:NEM - Get Free Report) last released its quarterly earnings data on Thursday, February 19th. The basic materials company reported $2.52 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.71. Newmont had a net margin of 31.25% and a return on equity of 23.28%. The firm had revenue of $6.82 billion during the quarter, compared to analysts' expectations of $6.18 billion. During the same period in the previous year, the company earned $1.40 earnings per share. The firm's quarterly revenue was up 20.6% on a year-over-year basis. As a group, equities research analysts forecast that Newmont Corporation will post 3.45 EPS for the current fiscal year.

Newmont Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Tuesday, March 3rd were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, March 3rd. This is a positive change from Newmont's previous quarterly dividend of $0.25. Newmont's payout ratio is currently 16.28%.

Insiders Place Their Bets

In other Newmont news, EVP Peter Toth sold 3,000 shares of the stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $113.09, for a total value of $339,270.00. Following the transaction, the executive vice president owned 52,315 shares of the company's stock, valued at approximately $5,916,303.35. This represents a 5.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider David James Fry sold 18,394 shares of the firm's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $111.45, for a total value of $2,050,011.30. Following the completion of the transaction, the insider directly owned 17,147 shares in the company, valued at $1,911,033.15. The trade was a 51.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 24,394 shares of company stock worth $2,713,281. Company insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Newmont

Several institutional investors have recently made changes to their positions in the business. Brighton Jones LLC raised its position in Newmont by 15.7% in the fourth quarter. Brighton Jones LLC now owns 13,606 shares of the basic materials company's stock worth $506,000 after acquiring an additional 1,847 shares during the period. Woodline Partners LP grew its position in shares of Newmont by 40.7% during the 1st quarter. Woodline Partners LP now owns 96,182 shares of the basic materials company's stock valued at $4,644,000 after acquiring an additional 27,813 shares during the period. Sivia Capital Partners LLC purchased a new stake in shares of Newmont in the 2nd quarter worth $240,000. Cerity Partners LLC raised its holdings in Newmont by 108.9% in the 2nd quarter. Cerity Partners LLC now owns 125,355 shares of the basic materials company's stock worth $7,303,000 after purchasing an additional 65,342 shares during the period. Finally, NewEdge Advisors LLC raised its holdings in Newmont by 8.5% in the 2nd quarter. NewEdge Advisors LLC now owns 48,982 shares of the basic materials company's stock worth $2,854,000 after purchasing an additional 3,856 shares during the period. Institutional investors own 68.85% of the company's stock.

Newmont Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.