Newmont (NYSE:NEM) Shares Gap Up on Better-Than-Expected Earnings

Shares of Newmont Co. (NYSE:NEM - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $38.60, but opened at $40.33. Newmont shares last traded at $41.51, with a volume of 8,001,837 shares.

The basic materials company reported $0.55 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.23. Newmont had a positive return on equity of 6.21% and a negative net margin of 20.95%. The company had revenue of $4.02 billion for the quarter, compared to analyst estimates of $3.66 billion. During the same quarter last year, the firm posted $0.40 earnings per share. Newmont's revenue was up 50.2% compared to the same quarter last year.

Newmont Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Tuesday, March 5th were paid a $0.25 dividend. The ex-dividend date was Monday, March 4th. This represents a $1.00 dividend on an annualized basis and a yield of 2.30%. Newmont's dividend payout ratio is -42.02%.

Analyst Ratings Changes

Several brokerages have recently commented on NEM. Scotiabank reduced their target price on Newmont from $50.00 to $43.50 and set a "sector perform" rating for the company in a research note on Wednesday, February 28th. TD Securities dropped their price target on Newmont from $40.00 to $36.00 and set a "hold" rating for the company in a report on Friday, February 23rd. Argus cut Newmont from a "buy" rating to a "hold" rating in a report on Monday, February 26th. National Bank Financial reaffirmed an "outperform overweight" rating on shares of Newmont in a report on Monday, April 8th. Finally, Jefferies Financial Group started coverage on Newmont in a report on Thursday, February 29th. They issued a "buy" rating and a $38.00 price objective for the company. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $50.89.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. State of Alaska Department of Revenue lifted its stake in Newmont by 27.5% in the fourth quarter. State of Alaska Department of Revenue now owns 170,138 shares of the basic materials company's stock worth $7,041,000 after purchasing an additional 36,645 shares during the last quarter. Janney Montgomery Scott LLC lifted its position in Newmont by 22.3% during the third quarter. Janney Montgomery Scott LLC now owns 145,639 shares of the basic materials company's stock valued at $5,382,000 after purchasing an additional 26,599 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its position in shares of Newmont by 13.5% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 795,517 shares of the basic materials company's stock worth $32,926,000 after acquiring an additional 94,692 shares during the period. KLCM Advisors Inc. increased its stake in shares of Newmont by 4.3% during the fourth quarter. KLCM Advisors Inc. now owns 427,826 shares of the basic materials company's stock worth $17,708,000 after purchasing an additional 17,791 shares in the last quarter. Finally, Pacer Advisors Inc. grew its stake in Newmont by 70.5% during the 4th quarter. Pacer Advisors Inc. now owns 85,401 shares of the basic materials company's stock valued at $3,535,000 after acquiring an additional 35,303 shares in the last quarter. Institutional investors own 68.85% of the company's stock.

Newmont Stock Performance

The company has a market cap of $50.04 billion, a PE ratio of -18.24, a PEG ratio of 1.05 and a beta of 0.50. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.98 and a current ratio of 1.25. The firm's 50 day moving average is $35.35 and its 200-day moving average is $36.92.

About Newmont

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.