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

Key Points

• Unusually heavy options activity targeted Newmont, with investors purchasing 47,733 call options—about 119% above average volume—indicating elevated bullish interest.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and average price target of $132.59; TD recently raised its target to $133.
• Newmont shares rose to $117.76, while the company reported quarterly EPS of $2.10, exceeding estimates, and announced a quarterly dividend of $0.26 per share. However, insiders sold $3.29 million of stock over the past three months.

Newmont Corporation (NYSE:NEM - Get Free Report) was the target of some unusual options trading on Friday. Stock traders purchased 47,733 call options on the company. This is an increase of approximately 119% compared to the average volume of 21,839 call options.

Analyst Ratings Changes

Several equities analysts have issued reports on NEM shares. TD boosted their target price on Newmont from $127.00 to $133.00 and gave the stock a "buy" rating in a research report on Wednesday. National Bank Financial decreased their price target on Newmont from $140.00 to $125.00 and set a "sector perform" rating on the stock in a research note on Tuesday, July 14th. TD Cowen reaffirmed a "buy" rating on shares of Newmont in a report on Monday, April 27th. Bank of America reduced their target price on Newmont from $157.00 to $132.00 and set a "buy" rating for the company in a report on Thursday, July 9th. Finally, Royal Bank Of Canada decreased their target price on shares of Newmont from $140.00 to $135.00 and set an "outperform" rating on the stock in a research report on Thursday, July 9th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $132.59.

Insider Buying and Selling

In other news, EVP Peter Toth sold 3,000 shares of the firm's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $93.45, for a total value of $280,350.00. Following the completion of the sale, the executive vice president owned 40,315 shares in the company, valued at approximately $3,767,436.75. This trade represents a 6.93% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian Tabolt sold 11,445 shares of Newmont stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $105.09, for a total transaction of $1,202,755.05. Following the completion of the sale, the chief financial officer directly owned 29,324 shares in the company, valued at approximately $3,081,659.16. The trade was a 28.07% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 32,091 shares of company stock valued at $3,292,513 over the last three months. 0.06% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Newmont

A number of institutional investors have recently made changes to their positions in the stock. CWM LLC boosted its stake in Newmont by 64.6% in the fourth quarter. CWM LLC now owns 202,892 shares of the basic materials company's stock valued at $20,259,000 after acquiring an additional 79,617 shares during the period. Leonteq Securities AG acquired a new stake in shares of Newmont during the 4th quarter valued at $9,018,000. ARS Investment Partners LLC boosted its stake in shares of Newmont by 3.6% during the 4th quarter. ARS Investment Partners LLC now owns 697,063 shares of the basic materials company's stock worth $69,602,000 after acquiring an additional 23,900 shares in the last quarter. KBC Group NV grew its holdings in shares of Newmont by 8.8% in the 4th quarter. KBC Group NV now owns 235,271 shares of the basic materials company's stock worth $23,492,000 after acquiring an additional 18,940 shares during the last quarter. Finally, Thrivent Financial for Lutherans raised its position in shares of Newmont by 37.7% during the fourth quarter. Thrivent Financial for Lutherans now owns 214,282 shares of the basic materials company's stock worth $21,440,000 after purchasing an additional 58,690 shares during the period. 68.85% of the stock is owned by institutional investors and hedge funds.

Newmont Price Performance

Shares of NEM stock traded up $3.57 during mid-day trading on Friday, reaching $117.76. The stock had a trading volume of 2,689,097 shares, compared to its average volume of 9,013,753. The company has a market cap of $124.08 billion, a P/E ratio of 14.89, a price-to-earnings-growth ratio of 1.31 and a beta of 0.47. The company has a current ratio of 2.55, a quick ratio of 2.26 and a debt-to-equity ratio of 0.15. Newmont has a 12-month low of $67.20 and a 12-month high of $134.88. The business has a 50-day simple moving average of $98.57 and a 200 day simple moving average of $108.92.

Newmont (NYSE:NEM - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The basic materials company reported $2.10 EPS for the quarter, beating analysts' consensus estimates of $2.05 by $0.05. Newmont had a net margin of 33.36% and a return on equity of 29.10%. The firm had revenue of $6.12 billion for the quarter, compared to analysts' expectations of $6.35 billion. During the same period in the prior year, the company earned $1.43 EPS. On average, sell-side analysts anticipate that Newmont will post 9 earnings per share for the current year.

Newmont Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Investors of record on Thursday, September 3rd will be paid a $0.26 dividend. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $1.04 dividend on an annualized basis and a yield of 0.9%. Newmont's dividend payout ratio is presently 13.13%.

Key Newmont News

Here are the key news stories impacting Newmont this week:

• Positive Sentiment: Unusually heavy call-option activity points to elevated bullish positioning. Investors bought 47,733 call options, roughly 119% above typical volume, suggesting expectations for additional upside, although options activity alone does not guarantee a price increase.
• Positive Sentiment: New Nevada exploration agreements strengthen Newmont’s growth pipeline. The company entered an earn-in agreement on Headwater Gold’s Jupiter Project and formalized a joint venture at Spring Peak. An external analysis estimates Newmont could be about 19% undervalued following these deals. Newmont Could Be 19% Undervalued Following Its New Nevada Gold Deals
• Positive Sentiment: Analysts remain constructive. TD raised its Newmont price target to $133 from $127 while maintaining a Buy rating. Scotiabank also forecast strong appreciation, and the median target among recently tracked analysts was $145.50. TD Raises Newmont Price Target
• Positive Sentiment: Firm gold prices are supporting the rally. Newmont has benefited from gold trading near record levels, contributing to a gain of more than 20% over the past month and strengthening investor interest in gold producers. Newmont in Focus as Gold Nears Record Highs
• Neutral Sentiment: Institutional positioning is mixed. JPMorgan and VanEck increased their holdings, while BlackRock and other institutions reduced exposure. This indicates strong but uneven professional-investor conviction.
• Negative Sentiment: Operational risks could limit further gains. Recent analysis cited lower production, rising costs and potentially weaker estimates despite stronger bullion prices. Investors are also monitoring uncertainty involving Nevada Gold Mines, Barrick’s Fourmile project and the economics and oversight of the joint venture. Newmont Slips as Investors Weigh Nevada Joint Venture Uncertainty
• Negative Sentiment: Insider selling is a cautionary signal. Company insiders reported 15 sales and no purchases during the past six months, including transactions by senior executives. This may reinforce profit-taking concerns after the sharp recent rally.

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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