Newmont (NYSE:NEM) Shares Gap Down - What's Next?

Key Points

• Newmont Corporation shares gapped down from a previous close of $88.91 to an opening price of $82.54 amid trading on Friday, with the last trade recorded at $84.46.
• Several analysts have upgraded Newmont's ratings, with target prices ranging from $74 to $104, and the stock currently holds a consensus rating of "Moderate Buy" with an average target price of $90.59.
• Newmont reported $1.71 earnings per share, surpassing expectations of $1.27, along with a quarterly revenue of $5.52 billion, a 20% increase from the previous year.

Newmont Corporation (NYSE:NEM - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $88.91, but opened at $82.54. Newmont shares last traded at $84.46, with a volume of 5,183,840 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. National Bankshares reiterated an "outperform" rating on shares of Newmont in a report on Monday, September 22nd. Citigroup increased their target price on shares of Newmont from $74.00 to $104.00 and gave the stock a "buy" rating in a report on Wednesday, October 15th. Cibc World Mkts upgraded shares of Newmont from a "hold" rating to a "strong-buy" rating in a report on Friday, October 10th. Royal Bank Of Canada upgraded shares of Newmont from a "sector perform" rating to an "outperform" rating and raised their price objective for the stock from $66.00 to $95.00 in a report on Wednesday, September 10th. Finally, TD Securities raised their price objective on shares of Newmont from $67.00 to $89.00 and gave the stock a "hold" rating in a report on Wednesday, October 8th. Five investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $90.59.

Newmont Trading Down 4.7%

The firm has a market capitalization of $93.09 billion, a price-to-earnings ratio of 15.24, a price-to-earnings-growth ratio of 0.59 and a beta of 0.34. The business's fifty day moving average is $80.89 and its 200 day moving average is $65.15. 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 earnings results on Thursday, October 23rd. The basic materials company reported $1.71 earnings per share for the quarter, beating analysts' consensus estimates of $1.27 by $0.44. The business had revenue of $5.52 billion during the quarter, compared to the consensus estimate of $5.14 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 20.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.81 earnings per share. Equities analysts predict that Newmont Corporation will post 3.45 earnings per share for the current year.

Newmont Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 22nd. Investors of record on Wednesday, November 26th will be given a $0.25 dividend. The ex-dividend date of this dividend is Wednesday, November 26th. This represents a $1.00 dividend on an annualized basis and a yield of 1.2%. Newmont's dividend payout ratio (DPR) is 17.95%.

Insider Activity at Newmont

In related news, CAO Brian Tabolt sold 7,015 shares of the firm's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $68.02, for a total value of $477,160.30. Following the completion of the transaction, the chief accounting officer owned 32,615 shares of the company's stock, valued at approximately $2,218,472.30. This trade represents a 17.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Bruce R. Brook sold 2,080 shares of the firm's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $84.99, for a total transaction of $176,779.20. Following the completion of the transaction, the director directly owned 36,869 shares of the company's stock, valued at approximately $3,133,496.31. This trade represents a 5.34% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 16,249 shares of company stock valued at $1,132,065. Corporate insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Harbor Capital Advisors Inc. grew its position in shares of Newmont by 53.5% in the 3rd quarter. Harbor Capital Advisors Inc. now owns 399 shares of the basic materials company's stock valued at $34,000 after acquiring an additional 139 shares during the period. Concord Wealth Partners grew its position in shares of Newmont by 534.7% in the 2nd quarter. Concord Wealth Partners now owns 457 shares of the basic materials company's stock valued at $27,000 after acquiring an additional 385 shares during the period. Evermay Wealth Management LLC grew its position in shares of Newmont by 408.2% in the 2nd quarter. Evermay Wealth Management LLC now owns 498 shares of the basic materials company's stock valued at $29,000 after acquiring an additional 400 shares during the period. Salomon & Ludwin LLC bought a new position in shares of Newmont in the 3rd quarter valued at about $44,000. Finally, Capital A Wealth Management LLC grew its position in shares of Newmont by 1,648.3% in the 2nd quarter. Capital A Wealth Management LLC now owns 507 shares of the basic materials company's stock valued at $30,000 after acquiring an additional 478 shares during the period. Institutional investors own 68.85% of the company's stock.

About Newmont

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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