Newmont (NYSE:NEM) Shares Up 2.6% - Here's What Happened

Key Points

• Newmont shares rose 2.6% mid-day to $101.57 (high $103.94) with 9.41M shares traded, about 13% below average session volume.
• The company beat estimates for the quarter (EPS $2.52 vs. $1.81 est.; revenue $6.82B vs. $6.18B) and carries a consensus Buy rating with an average price target of $134.10.
• Newmont raised its quarterly dividend to $0.26 (annualized $1.04, ~1.0% yield) and reported insider sales by executives, while trading at a P/E of 15.9 and a market cap of $110.5B.

Newmont Corporation (NYSE:NEM - Get Free Report)'s stock price shot up 2.6% during mid-day trading on Wednesday . The stock traded as high as $103.94 and last traded at $101.5710. 9,411,683 shares were traded during mid-day trading, a decline of 13% from the average session volume of 10,841,604 shares. The stock had previously closed at $99.02.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Canadian Imperial Bank of Commerce dropped their price objective on Newmont from $71.00 to $67.00 in a report on Friday, February 27th. UBS Group reduced their target price on Newmont from $160.00 to $150.00 and set a "buy" rating on the stock in a report on Monday, February 23rd. Macquarie Infrastructure upped their price target on Newmont from $115.00 to $126.00 and gave the company an "outperform" rating in a research note on Friday, February 6th. BNP Paribas Exane increased their price target on shares of Newmont from $123.00 to $128.00 and gave the company a "neutral" rating in a research report on Monday, March 2nd. Finally, National Bank Financial lifted their price objective on shares of Newmont from $120.00 to $140.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 4th. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $134.10.

Newmont Trading Up 2.6%

The company has a fifty day simple moving average of $117.82 and a two-hundred day simple moving average of $100.06. The company has a quick ratio of 2.02, a current ratio of 2.29 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $110.50 billion, a P/E ratio of 15.90, a price-to-earnings-growth ratio of 0.76 and a beta of 0.39.

Newmont (NYSE:NEM - Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The basic materials company reported $2.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.81 by $0.71. The company had revenue of $6.82 billion during the quarter, compared to the consensus estimate of $6.18 billion. Newmont had a return on equity of 23.28% and a net margin of 31.25%.The company's revenue for the quarter was up 20.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.40 earnings per share. On average, sell-side analysts expect that Newmont Corporation will post 3.45 earnings per share for the current year.

Newmont Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Tuesday, March 3rd will be paid a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, March 3rd. This is a positive change from Newmont's previous quarterly dividend of $0.25. Newmont's dividend payout ratio (DPR) is currently 16.28%.

Insider Activity at Newmont

In other news, EVP Peter Toth sold 3,000 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $108.00, for a total value of $324,000.00. Following the completion of the transaction, the executive vice president owned 55,315 shares in the company, valued at $5,974,020. This represents a 5.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider David James Fry sold 18,394 shares of the stock in a transaction on Monday, March 16th. The stock was sold at an average price of $111.45, for a total transaction of $2,050,011.30. Following the sale, the insider directly owned 17,147 shares of the company's stock, valued at $1,911,033.15. This represents a 51.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Newmont

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Estate Counselors LLC bought a new stake in Newmont in the 3rd quarter valued at about $4,182,000. AustralianSuper Pty Ltd increased its holdings in shares of Newmont by 124.8% during the third quarter. AustralianSuper Pty Ltd now owns 330,250 shares of the basic materials company's stock worth $27,843,000 after purchasing an additional 183,360 shares during the period. Knights of Columbus Asset Advisors LLC raised its position in shares of Newmont by 286.5% in the third quarter. Knights of Columbus Asset Advisors LLC now owns 60,499 shares of the basic materials company's stock valued at $5,101,000 after buying an additional 44,846 shares in the last quarter. Robeco Institutional Asset Management B.V. raised its position in shares of Newmont by 172.2% in the third quarter. Robeco Institutional Asset Management B.V. now owns 4,304,215 shares of the basic materials company's stock valued at $362,888,000 after buying an additional 2,723,044 shares in the last quarter. Finally, Live Oak Investment Partners bought a new stake in shares of Newmont in the third quarter valued at approximately $2,232,000. 68.85% of the stock is owned by institutional investors and hedge funds.

About Newmont

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.

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