Newmont (NYSE:NEM) Shares Gap Up on Earnings Beat

Key Points

• Newmont Corporation shares gapped up to $63.88 after reporting earnings of $1.43 per share, exceeding the consensus estimate by $0.48.
• The company's revenue for the quarter was $5.32 billion, notably higher than the expected $4.70 billion, marking a 20.8% increase year-over-year.
• Analyst ratings on Newmont vary, with eight analysts issuing a "buy" rating and three a "strong buy," indicating a generally positive sentiment around the stock.
• Insider trading was reported, with executives selling shares, resulting in a slight decrease in their ownership stakes in the company.

Newmont Corporation (NYSE:NEM - Get Free Report) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $61.51, but opened at $63.88. Newmont shares last traded at $65.64, with a volume of 4,797,092 shares.

The basic materials company reported $1.43 EPS for the quarter, topping the consensus estimate of $0.95 by $0.48. The company had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $4.70 billion. Newmont had a net margin of 25.77% and a return on equity of 15.75%. The company's revenue for the quarter was up 20.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.72 earnings per share.

Wall Street Analyst Weigh In

NEM has been the subject of several recent analyst reports. National Bankshares reiterated a "sector perform" rating on shares of Newmont in a research note on Tuesday, June 24th. Cfra Research upgraded Newmont to a "strong-buy" rating in a research note on Friday, April 25th. Stifel Nicolaus initiated coverage on Newmont in a research note on Wednesday, July 9th. They set a "buy" rating and a $73.00 price target for the company. Wall Street Zen upgraded Newmont from a "hold" rating to a "buy" rating in a research note on Friday, May 30th. Finally, BMO Capital Markets reiterated an "outperform" rating on shares of Newmont in a research note on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, eight have given a buy rating and three have assigned a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $62.49.

Insider Activity at Newmont

In other news, EVP Peter Toth sold 3,000 shares of the stock in a transaction that occurred on Monday, June 2nd. The stock was 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 directly owned 77,526 shares of the company's stock, valued at approximately $4,193,381.34. This represents a 3.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Bruce R. Brook sold 2,077 shares of the stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $58.75, for a total value of $122,023.75. Following the completion of the transaction, the director directly owned 43,103 shares of the company's stock, valued at approximately $2,532,301.25. The trade was a 4.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 12,231 shares of company stock valued at $679,813. Insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Newmont

A number of hedge funds have recently modified their holdings of NEM. SOA Wealth Advisors LLC. raised its holdings in shares of Newmont by 64.0% in the 1st quarter. SOA Wealth Advisors LLC. now owns 515 shares of the basic materials company's stock worth $25,000 after buying an additional 201 shares in the last quarter. Cloud Capital Management LLC acquired a new position in shares of Newmont in the 1st quarter worth approximately $26,000. Colonial Trust Advisors raised its holdings in shares of Newmont by 315.4% in the 1st quarter. Colonial Trust Advisors now owns 565 shares of the basic materials company's stock worth $27,000 after buying an additional 429 shares in the last quarter. Private Trust Co. NA raised its holdings in shares of Newmont by 122.6% in the 1st quarter. Private Trust Co. NA now owns 630 shares of the basic materials company's stock worth $30,000 after buying an additional 347 shares in the last quarter. Finally, Nexus Investment Management ULC acquired a new position in shares of Newmont in the 1st quarter worth approximately $31,000. 68.85% of the stock is owned by institutional investors and hedge funds.

Newmont Price Performance

The stock has a fifty day moving average of $56.74 and a two-hundred day moving average of $50.28. The stock has a market capitalization of $72.88 billion, a price-to-earnings ratio of 14.73, a PEG ratio of 0.90 and a beta of 0.33. The company has a current ratio of 1.98, a quick ratio of 1.70 and a debt-to-equity ratio of 0.25.

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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