Newmont (NYSE:NEM) Upgraded by Wall Street Zen to Strong-Buy Rating

Key Points

• Newmont was upgraded by Wall Street Zen from “buy” to “strong-buy”, adding to a generally positive analyst outlook on the gold miner.
• The stock has also seen multiple price-target increases from other firms, and MarketBeat shows a Moderate Buy consensus with an average target price of $142.51.
• Newmont reported better-than-expected quarterly results, with EPS of $2.90 versus estimates of $2.07 and revenue of $7.31 billion, while insiders recently sold shares under pre-arranged trading plans.

Newmont (NYSE:NEM - Get Free Report) was upgraded by Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued to investors on Saturday.

A number of other research analysts have also recently issued reports on the stock. Argus lifted their price objective on shares of Newmont from $94.00 to $125.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. BMO Capital Markets upped their target price on Newmont from $140.00 to $145.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. National Bank Financial raised their target price on Newmont from $130.00 to $140.00 and gave the company a "sector perform" rating in a report on Friday, April 24th. Canaccord Genuity Group boosted their price target on Newmont from $150.00 to $160.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. Finally, The Goldman Sachs Group upped their price objective on Newmont from $123.20 to $125.10 and gave the stock a "buy" rating in a research report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $142.51.

Newmont Trading Down 6.4%

NEM opened at $108.93 on Friday. The stock has a market capitalization of $116.29 billion, a price-to-earnings ratio of 14.13, a P/E/G ratio of 1.62 and a beta of 0.43. The company has a quick ratio of 2.17, a current ratio of 2.44 and a debt-to-equity ratio of 0.15. Newmont has a twelve month low of $48.61 and a twelve month high of $134.88. The company has a 50-day simple moving average of $111.96 and a 200 day simple moving average of $107.04.

Newmont (NYSE:NEM - Get Free Report) last released its earnings results on Thursday, April 23rd. The basic materials company reported $2.90 EPS for the quarter, beating the consensus estimate of $2.07 by $0.83. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The firm had revenue of $7.31 billion for the quarter, compared to analyst estimates of $6.83 billion. During the same period last year, the firm earned $1.25 EPS. The business's quarterly revenue was up 45.8% compared to the same quarter last year. Analysts predict that Newmont will post 9.72 EPS for the current fiscal year.

Insider Activity

In other Newmont news, insider David John Thornton sold 2,296 shares of the stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $110.11, for a total transaction of $252,812.56. Following the completion of the sale, the insider directly owned 23,163 shares in the company, valued at approximately $2,550,477.93. This trade represents a 9.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Peter Wexler sold 13,378 shares of Newmont stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $110.11, for a total value of $1,473,051.58. Following the completion of the transaction, the executive vice president directly owned 67,865 shares of the company's stock, valued at approximately $7,472,615.15. This trade represents a 16.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 43,068 shares of company stock valued at $4,769,475. 0.06% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Newmont

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in Newmont by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 134,107,293 shares of the basic materials company's stock worth $13,390,613,000 after acquiring an additional 637,996 shares in the last quarter. State Street Corp increased its stake in Newmont by 1.0% in the fourth quarter. State Street Corp now owns 49,959,850 shares of the basic materials company's stock valued at $4,988,491,000 after purchasing an additional 480,223 shares in the last quarter. Van ECK Associates Corp raised its holdings in shares of Newmont by 23.4% during the fourth quarter. Van ECK Associates Corp now owns 29,780,063 shares of the basic materials company's stock valued at $2,973,539,000 after purchasing an additional 5,643,496 shares during the period. Geode Capital Management LLC grew its stake in shares of Newmont by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 27,011,084 shares of the basic materials company's stock valued at $2,738,756,000 after buying an additional 946,824 shares during the period. Finally, Norges Bank bought a new stake in Newmont in the 4th quarter valued at about $1,443,128,000. 68.85% of the stock is owned by institutional investors and hedge funds.

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.

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