Newmont Target of Unusually Large Options Trading (NYSE:NEM)

Key Points

• Unusually heavy options activity hit Newmont, with traders buying 63,760 call options on Tuesday — about 127% above its typical daily volume.
• The stock rose to $111.10 and Newmont recently beat quarterly expectations, reporting $2.90 EPS versus the $2.07 estimate and revenue of $7.31 billion versus $6.83 billion expected.
• Newmont announced a quarterly dividend of $0.26 per share payable June 22, while analysts currently rate the stock a Moderate Buy with an average target price of $142.05.

Newmont Corporation (NYSE:NEM - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock traders acquired 63,760 call options on the stock. This represents an increase of approximately 127% compared to the typical daily volume of 28,060 call options.

Newmont Price Performance

NYSE NEM traded up $3.46 during trading on Tuesday, reaching $111.10. The company's stock had a trading volume of 3,489,550 shares, compared to its average volume of 9,465,099. The firm has a fifty day moving average of $110.90 and a 200 day moving average of $108.39. Newmont has a one year low of $51.80 and a one year high of $134.88. The stock has a market capitalization of $118.60 billion, a PE ratio of 14.41, a P/E/G ratio of 1.54 and a beta of 0.43. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.44 and a quick ratio of 2.17.

Newmont (NYSE:NEM - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The basic materials company reported $2.90 EPS for the quarter, topping the consensus estimate of $2.07 by $0.83. The company had revenue of $7.31 billion during the quarter, compared to analyst estimates of $6.83 billion. Newmont had a return on equity of 27.84% and a net margin of 33.87%.Newmont's revenue was up 45.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.25 earnings per share. Analysts expect that Newmont will post 9.47 EPS for the current fiscal year.

Newmont Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 22nd. Shareholders of record on Wednesday, May 27th will be given a dividend of $0.26 per share. The ex-dividend date is Wednesday, May 27th. This represents a $1.04 dividend on an annualized basis and a yield of 0.9%. Newmont's dividend payout ratio (DPR) is presently 13.49%.

Insider Buying and Selling

In other news, insider David John Thornton sold 2,296 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $110.11, for a total value of $252,812.56. Following the transaction, the insider owned 23,163 shares in the company, valued at $2,550,477.93. This trade represents a 9.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 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 the company's stock in a transaction on 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 sale, the executive vice president owned 67,865 shares of the company's stock, valued at $7,472,615.15. This trade represents a 16.47% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold a total of 43,068 shares of company stock worth $4,769,475 over the last 90 days. Company insiders own 0.06% of the company's stock.

Institutional Investors Weigh In On Newmont

A number of hedge funds have recently made changes to their positions in NEM. GoalVest Advisory LLC bought a new stake in Newmont in the 4th quarter worth $25,000. Pinnacle Bancorp Inc. purchased a new position in shares of Newmont during the first quarter valued at approximately $25,000. Cedar Mountain Advisors LLC bought a new position in shares of Newmont during the first quarter valued at approximately $25,000. Physician Wealth Advisors Inc. lifted its stake in Newmont by 327.8% in the third quarter. Physician Wealth Advisors Inc. now owns 308 shares of the basic materials company's stock worth $26,000 after acquiring an additional 236 shares during the period. Finally, Swiss RE Ltd. bought a new stake in Newmont in the fourth quarter valued at $26,000. 68.85% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. TD Securities reiterated a "hold" rating and issued a $129.00 target price on shares of Newmont in a research note on Monday, April 27th. Macquarie Infrastructure upped their price objective on Newmont from $130.00 to $133.00 and gave the company an "outperform" rating in a research note on Monday, April 27th. Jefferies Financial Group raised their target price on Newmont from $162.00 to $165.00 and gave the stock a "buy" rating in a research report on Friday, April 10th. Sanford C. Bernstein upgraded Newmont from a "market perform" rating to an "outperform" rating and boosted their target price for the company from $121.00 to $157.00 in a research note on Friday, February 27th. Finally, Citigroup upped their price target on Newmont from $118.00 to $150.00 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $142.05.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.