Newmont (NYSE:NEM) Stock Crosses Above 200-Day Moving Average Following Insider Selling

Key Points

• Newmont shares rose above their 200-day moving average, trading as high as $118.38 against the average of $112.44.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $137.20; individual targets ranged from $131 to $154.
• Newmont beat quarterly earnings and revenue estimates, with revenue up 15.2% year over year. Reports of insider sales may affect sentiment, though the article says transactions were under pre-arranged plans and some related to tax withholding.

Shares of Newmont Corporation (NYSE:NEM - Get Free Report) passed above its two hundred day moving average during trading on Wednesday following insider buying activity. The stock has a two hundred day moving average of $112.44 and traded as high as $118.38. Newmont shares last traded at $118.22, with a volume of 10,954,406 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have commented on NEM shares. Bank of America lifted their target price on Newmont from $135.00 to $145.00 in a research report on Monday, August 17th. National Bank Financial lowered their price target on Newmont from $140.00 to $135.00 and set a "sector perform" rating for the company in a report on Tuesday, October 20th. Weiss Ratings raised Newmont from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, October 16th. Canadian Imperial Bank of Commerce set a $154.00 target price on shares of Newmont in a report on Friday, October 16th. Finally, TD Cowen cut their target price on Newmont from $133.00 to $131.00 in a research report on Tuesday, October 20th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $137.20.

Newmont News Roundup

Here are the key news stories impacting Newmont this week:

• Positive Sentiment: Newmont’s strong free-cash-flow momentum is supporting investment in growth projects and additional shareholder returns, a potential fundamental tailwind. Article: Can Newmont's Strong Free Cash Flow Momentum Carry Into Q4?
• Positive Sentiment: Recent quarterly results also provide support: Newmont beat analyst expectations for earnings and revenue, with revenue up year over year. Newmont company information
• Negative Sentiment: Insider-sale reports may weigh modestly on sentiment. EVP Peter Toth sold 3,000 shares, while the reported executive transactions were made under pre-arranged plans; the CEO’s sale was described as covering tax withholding on vested awards, which reduces their significance as a signal about the company’s outlook. Article: Insider Selling: Newmont EVP Sells 3,000 Shares

Newmont Price Performance

The company has a market capitalization of $122.85 billion, a PE ratio of 13.75, a price-to-earnings-growth ratio of 1.96 and a beta of 0.56. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.45 and a quick ratio of 2.16. The stock's 50 day simple moving average is $119.34 and its 200-day simple moving average is $112.44.

Newmont (NYSE:NEM - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The basic materials company reported $2.20 earnings per share for the quarter, beating analysts' consensus estimates of $1.94 by $0.26. The firm had revenue of $6.36 billion during the quarter, compared to analysts' expectations of $6.27 billion. Newmont had a net margin of 34.73% and a return on equity of 29.81%. The business's quarterly revenue was up 15.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.71 earnings per share. As a group, equities analysts forecast that Newmont Corporation will post 9.11 earnings per share for the current fiscal year.

Newmont Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Wednesday, November 25th will be paid a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Wednesday, November 25th. Newmont's dividend payout ratio (DPR) is presently 12.09%.

Institutional Investors Weigh In On Newmont

Several large investors have recently bought and sold shares of the stock. Cedar Mountain Advisors LLC purchased a new stake in shares of Newmont during the first quarter worth approximately $25,000. Clearstead Trust LLC purchased a new position in Newmont in the second quarter worth approximately $25,000. Kilter Group LLC purchased a new position in Newmont in the second quarter worth approximately $26,000. GoalVest Advisory LLC purchased a new position in Newmont in the third quarter worth approximately $28,000. Finally, Financial Management Professionals Inc. acquired a new position in Newmont during the 3rd quarter worth approximately $30,000. Hedge funds and other institutional investors own 68.85% of the company's stock.

About Newmont

Newmont Corporation NYSE: NEM is a global mining company primarily engaged in the exploration, development, and production of gold. The company also produces copper, silver, zinc, and lead as byproducts of its mining operations. Its activities span the full mining life cycle, including resource discovery, project development, mine operations, processing, reclamation, and closure.

Founded in 1921, Newmont has grown into one of the world's largest gold producers. The company operates and develops mines across several regions, including North America, South America, Australia, Africa, and Papua New Guinea.

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