Newmont (NYSE:NEM) Hits New 12-Month High - Time to Buy?

Key Points

• Newmont shares reached a new 52-week high of $135.09 and last traded near $135.23, putting the stock above its average analyst price target of $132.73.
• Analysts maintain a “Moderate Buy” consensus, with two Strong Buy, 18 Buy and four Hold ratings, although several brokerages recently lowered their price targets.
• Newmont beat quarterly EPS estimates with $2.10 versus $2.05 expected, but revenue of $6.12 billion fell short of the $6.35 billion consensus. The company also declared a quarterly dividend of $0.26, representing a 0.8% annualized yield.

Newmont Corporation (NYSE:NEM - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $135.09 and last traded at $135.2280, with a volume of 4969026 shares changing hands. The stock had previously closed at $131.84.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on NEM. BNP Paribas Exane dropped their price target on Newmont from $111.00 to $102.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 21st. Citigroup reduced their target price on Newmont from $150.00 to $125.00 and set a "buy" rating for the company in a research note on Monday, July 20th. TD Securities upgraded Newmont from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 14th. Macquarie Infrastructure cut their price objective on shares of Newmont from $133.00 to $123.00 and set an "outperform" rating on the stock in a research note on Monday, June 15th. Finally, Canaccord Genuity Group reduced their target price on shares of Newmont from $160.00 to $130.00 and set a "buy" rating for the company in a report on Thursday, July 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Newmont currently has an average rating of "Moderate Buy" and an average target price of $132.73.

Newmont Price Performance

The company has a 50-day moving average of $102.12 and a 200 day moving average of $109.03. The company has a quick ratio of 2.26, a current ratio of 2.55 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $142.49 billion, a PE ratio of 17.07, a PEG ratio of 1.36 and a beta of 0.47.

Newmont (NYSE:NEM - Get Free Report) last released 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 company had revenue of $6.12 billion during the quarter, compared to the consensus estimate of $6.35 billion. During the same quarter in the prior year, the firm earned $1.43 EPS. Sell-side analysts predict that Newmont Corporation will post 9.01 EPS 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 issued a $0.26 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $1.04 dividend on an annualized basis and a yield of 0.8%. Newmont's dividend payout ratio (DPR) is 13.13%.

Insider Buying and Selling at Newmont

In other news, EVP Peter Toth sold 3,000 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $93.45, for a total transaction 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. The trade was a 6.93% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Natascha Viljoen sold 7,764 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $104.00, for a total transaction of $807,456.00. Following the completion of the transaction, the chief executive officer owned 135,235 shares of the company's stock, valued at approximately $14,064,440. The trade was a 5.43% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 32,091 shares of company stock valued at $3,292,513. Insiders own 0.06% of the company's stock.

Institutional Investors Weigh In On Newmont

Large investors have recently modified their holdings of the company. Cedar Mountain Advisors LLC acquired a new stake in Newmont during the 1st quarter worth approximately $25,000. Pinnacle Bancorp Inc. acquired a new position in shares of Newmont in the first quarter valued at approximately $25,000. Swiss RE Ltd. purchased a new stake in shares of Newmont during the fourth quarter worth approximately $26,000. Clearstead Trust LLC purchased a new stake in shares of Newmont during the second quarter worth approximately $25,000. Finally, Cornerstone Planning Group LLC lifted its holdings in shares of Newmont by 312.1% during the fourth quarter. Cornerstone Planning Group LLC now owns 272 shares of the basic materials company's stock worth $27,000 after purchasing an additional 206 shares during the period. 68.85% of the stock is owned by institutional investors and hedge funds.

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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