Newmont Sees Unusually High Options Volume (NYSE:NEM)

Key Points

• Newmont Corporation experienced a remarkable 757% increase in call options trading, with 310,074 call options acquired on a recent Wednesday.
• The company's stock price fell to $75.43, with a trading volume lower than its average, as the firm reported a 30.5% net margin for its last quarter.
• Newmont declared a quarterly dividend of $0.25, which translates to an annualized dividend of $1.00 and a yield of 1.3%, with a payout ratio of 17.95%.

Newmont Corporation (NYSE:NEM - Get Free Report) saw some unusual options trading activity on Wednesday. Traders acquired 310,074 call options on the company. Thisisanincreaseof757% compared to the typical volume of 36,180 call options.

Newmont Stock Performance

Shares of NEM stock traded down $0.43 during trading hours on Wednesday, reaching $75.43. The stock had a trading volume of 8,877,439 shares, compared to its average volume of 11,714,016. The firm has a market capitalization of $82.86 billion, a PE ratio of 13.54, a price-to-earnings-growth ratio of 0.88 and a beta of 0.34. The firm has a 50-day simple moving average of $64.56 and a 200-day simple moving average of $55.41. Newmont has a twelve month low of $36.86 and a twelve month high of $76.52. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.23 and a quick ratio of 1.91.

Newmont (NYSE:NEM - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The basic materials company reported $1.43 EPS for the quarter, beating the consensus estimate 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%. Newmont's revenue was up 20.8% compared to the same quarter last year. During the same quarter last year, the business earned $0.72 earnings per share. As a group, equities analysts forecast that Newmont will post 3.45 earnings per share for the current year.

Newmont Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Stockholders of record on Thursday, September 4th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 4th. This represents a $1.00 annualized dividend and a dividend yield of 1.3%. Newmont's dividend payout ratio is presently 17.95%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Macquarie lowered Newmont from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $60.90 price objective on shares of Newmont in a report on Tuesday, July 8th. Stifel Canada raised shares of Newmont to a "strong-buy" rating in a report on Tuesday, July 8th. UBS Group raised their price target on shares of Newmont from $60.00 to $68.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Finally, Wall Street Zen raised shares of Newmont from a "hold" rating to a "buy" rating in a research report on Friday, May 30th. Four investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $65.15.

Insider Activity

In other Newmont news, Director Bruce R. Brook sold 2,077 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $63.66, for a total transaction of $132,221.82. Following the completion of the sale, the director owned 41,026 shares in the company, valued at $2,611,715.16. This trade represents a 4.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Peter Toth sold 3,000 shares of the company's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $63.66, for a total value of $190,980.00. Following the completion of the transaction, the executive vice president directly owned 58,736 shares in the company, valued at approximately $3,739,133.76. The trade was a 4.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 17,169 shares of company stock worth $1,098,636 over the last ninety days. Corporate insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Q3 Asset Management bought a new position in Newmont during the 2nd quarter valued at $3,242,000. Orion Porfolio Solutions LLC lifted its holdings in shares of Newmont by 160.1% in the second quarter. Orion Porfolio Solutions LLC now owns 49,040 shares of the basic materials company's stock valued at $2,857,000 after buying an additional 30,189 shares during the period. MASTERINVEST Kapitalanlage GmbH acquired a new stake in shares of Newmont in the second quarter valued at $2,511,000. Stance Capital LLC bought a new position in Newmont during the second quarter valued at about $1,308,000. Finally, Cim Investment Management Inc. grew its holdings in Newmont by 99.6% during the second quarter. Cim Investment Management Inc. now owns 38,742 shares of the basic materials company's stock worth $2,257,000 after acquiring an additional 19,335 shares during the period. 68.85% of the stock is owned by institutional investors and hedge funds.

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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