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

Key Points

• Unusual options activity: Newmont saw 46,555 call options traded on Monday, an 83% jump above its average call volume, suggesting elevated investor interest.
• Insiders have been selling shares: Executives Peter Toth and David John Thornton recently sold stock, and insiders have sold 28,556 shares worth about $3.12 million over the last 90 days.
• Fundamentals and analyst sentiment remain fairly supportive: Newmont beat quarterly EPS and revenue estimates, and analysts currently rate the stock a Moderate Buy with an average price target of $140.50.

Newmont Corporation (NYSE:NEM - Get Free Report) was the recipient of some unusual options trading on Monday. Investors acquired 46,555 call options on the company. This represents an increase of 83% compared to the average volume of 25,399 call options.

Insiders Place Their Bets

In other news, EVP Peter Toth sold 3,000 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $105.32, for a total transaction of $315,960.00. Following the sale, the executive vice president owned 46,315 shares in the company, valued at approximately $4,877,895.80. This represents a 6.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David John Thornton sold 2,296 shares of the firm's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $110.11, for a total value of $252,812.56. Following the completion of the sale, the insider owned 23,163 shares of the company's stock, valued at approximately $2,550,477.93. This trade represents a 9.02% 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. Insiders have sold 28,556 shares of company stock valued at $3,120,276 in the last 90 days. Insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Newmont

Institutional investors have recently modified their holdings of the stock. Basecamp Wealth Advisors LLC raised its position in shares of Newmont by 37.4% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 842 shares of the basic materials company's stock valued at $91,000 after acquiring an additional 229 shares during the period. US Asset Management LLC increased its stake in Newmont by 32.8% in the first quarter. US Asset Management LLC now owns 4,154 shares of the basic materials company's stock valued at $450,000 after purchasing an additional 1,027 shares in the last quarter. FAS Wealth Partners Inc. increased its stake in Newmont by 3.8% in the first quarter. FAS Wealth Partners Inc. now owns 3,709 shares of the basic materials company's stock valued at $401,000 after purchasing an additional 137 shares in the last quarter. DV Trading LLC raised its holdings in Newmont by 33.4% in the first quarter. DV Trading LLC now owns 5,203 shares of the basic materials company's stock worth $563,000 after purchasing an additional 1,303 shares during the period. Finally, Parallel Advisors LLC raised its holdings in Newmont by 9.6% in the first quarter. Parallel Advisors LLC now owns 10,057 shares of the basic materials company's stock worth $1,089,000 after purchasing an additional 878 shares during the period. 68.85% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have weighed in on NEM. TD Cowen reaffirmed a "buy" rating on shares of Newmont in a research note on Monday, April 27th. Wall Street Zen lowered shares of Newmont from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 30th. TD upped their price objective on Newmont from $116.00 to $129.00 and gave the stock a "hold" rating in a report on Monday, April 27th. Argus increased their price objective on Newmont from $94.00 to $125.00 and gave the company a "buy" rating in a research report on Thursday, April 23rd. Finally, BMO Capital Markets lowered their target price on Newmont from $145.00 to $135.00 and set an "outperform" rating for the company in a research note on Tuesday, June 23rd. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $140.50.

Newmont Trading Down 1.6%

Shares of NEM traded down $1.58 on Monday, reaching $94.55. 4,791,743 shares of the company's stock were exchanged, compared to its average volume of 9,437,169. The business has a 50 day moving average price of $107.94 and a two-hundred day moving average price of $110.94. Newmont has a 12 month low of $55.37 and a 12 month high of $134.88. The stock has a market capitalization of $100.94 billion, a P/E ratio of 12.27, a price-to-earnings-growth ratio of 1.59 and a beta of 0.42. The company has a current ratio of 2.44, a quick ratio of 2.17 and a debt-to-equity ratio of 0.15.

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, topping analysts' consensus estimates of $2.07 by $0.83. The firm had revenue of $7.31 billion during the quarter, compared to analyst estimates of $6.83 billion. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The business's quarterly revenue was up 45.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.25 EPS. Research analysts anticipate that Newmont will post 9.91 earnings per share for the current year.

Newmont Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 22nd. Investors of record on Wednesday, May 27th were issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date was Wednesday, May 27th. Newmont's dividend payout ratio is currently 13.49%.

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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