Newmont (NYSE:NEM) Upgraded by Cibc World Mkts to "Strong-Buy" Rating

Key Points

• Newmont has been upgraded to a "strong-buy" rating by Cibc World Markets, reflecting increased analyst confidence in the company's stock.
• The company's last quarterly earnings significantly surpassed analysts' expectations, reporting $1.43 per share compared to the consensus estimate of $0.95.
• Current analysts' ratings for Newmont include four "strong buy," nine "buy," seven "hold," and one "sell," resulting in a consensus rating of "Moderate Buy."

Newmont (NYSE:NEM - Get Free Report) was upgraded by investment analysts at Cibc World Mkts from a "hold" rating to a "strong-buy" rating in a research note issued on Friday,Zacks.com reports.

A number of other analysts have also issued reports on NEM. National Bankshares restated an "outperform" rating on shares of Newmont in a research note on Monday, September 22nd. Weiss Ratings lowered shares of Newmont from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday. BNP Paribas lowered shares of Newmont from a "strong-buy" rating to a "hold" rating in a research note on Thursday, September 4th. BNP Paribas Exane lifted their price target on shares of Newmont from $66.00 to $92.00 and gave the stock an "outperform" rating in a research note on Monday, September 15th. Finally, Stifel Nicolaus started coverage on shares of Newmont in a research note on Wednesday, July 9th. They issued a "buy" rating and a $73.00 price target for the company. Four research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Newmont currently has a consensus rating of "Moderate Buy" and an average target price of $81.10.

Newmont Trading Down 0.2%

NEM opened at $85.07 on Friday. The firm has a market capitalization of $93.45 billion, a P/E ratio of 15.27, a P/E/G ratio of 0.95 and a beta of 0.34. The firm's 50 day moving average is $76.77 and its 200-day moving average is $62.44. Newmont has a 52-week low of $36.86 and a 52-week high of $89.37. 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 posted its quarterly earnings data on Thursday, July 24th. The basic materials company reported $1.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.95 by $0.48. The company had revenue of $5.32 billion for 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 business's quarterly revenue was up 20.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.72 earnings per share. Analysts expect that Newmont will post 3.45 EPS for the current fiscal year.

Insiders Place Their Bets

In other Newmont news, Director Bruce R. Brook sold 2,080 shares of Newmont stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $84.99, for a total value of $176,779.20. Following the completion of the transaction, the director owned 36,869 shares of the company's stock, valued at $3,133,496.31. The trade was a 5.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Peter Toth sold 3,000 shares of Newmont stock in a transaction on Friday, August 1st. The stock was sold at an average price of $63.66, for a total transaction of $190,980.00. Following the completion of the transaction, the executive vice president directly owned 58,736 shares of the company's stock, valued at approximately $3,739,133.76. This represents a 4.86% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 16,249 shares of company stock valued at $1,132,065 over the last 90 days. 0.05% of the stock is owned by company insiders.

Hedge Funds Weigh In On Newmont

Several hedge funds and other institutional investors have recently modified their holdings of the company. Bank of New York Mellon Corp boosted its holdings in shares of Newmont by 8.9% during the first quarter. Bank of New York Mellon Corp now owns 16,014,066 shares of the basic materials company's stock valued at $773,159,000 after acquiring an additional 1,306,783 shares during the period. Norges Bank acquired a new position in shares of Newmont during the second quarter valued at $919,170,000. Invesco Ltd. boosted its holdings in shares of Newmont by 45.0% during the second quarter. Invesco Ltd. now owns 15,587,917 shares of the basic materials company's stock valued at $908,152,000 after acquiring an additional 4,839,447 shares during the period. Northern Trust Corp boosted its holdings in shares of Newmont by 1.5% during the first quarter. Northern Trust Corp now owns 12,934,095 shares of the basic materials company's stock valued at $624,458,000 after acquiring an additional 191,940 shares during the period. Finally, Amundi boosted its holdings in shares of Newmont by 2.8% during the first quarter. Amundi now owns 12,646,114 shares of the basic materials company's stock valued at $611,187,000 after acquiring an additional 343,535 shares during the period. 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.

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