Royal Bank Of Canada Cuts Newmont (NYSE:NEM) Price Target to $140.00

Key Points

• Royal Bank of Canada lowered its price target on Newmont from $160 to $140 while keeping an outperform rating. The new target still implies about 29.8% upside from the current share price.
• Other analysts were mixed but generally positive, with several firms trimming targets and one or two raising them; MarketBeat reports Newmont’s consensus rating is Moderate Buy with an average price target of $142.20.
• Newmont recently reported better-than-expected quarterly results, including $2.90 EPS versus the $2.07 estimate and revenue of $7.31 billion, while shares were trading around $107.83 at the time of the report.

Newmont (NYSE:NEM - Get Free Report) had its price target decreased by analysts at Royal Bank Of Canada from $160.00 to $140.00 in a research report issued on Wednesday,MarketScreener reports. The brokerage currently has an "outperform" rating on the basic materials company's stock. Royal Bank Of Canada's price target indicates a potential upside of 29.83% from the company's current price.

A number of other research analysts have also commented on NEM. Jefferies Financial Group decreased their price objective on Newmont from $165.00 to $154.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. UBS Group cut their price target on Newmont from $150.00 to $140.00 and set a "buy" rating on the stock in a research note on Friday, March 27th. BMO Capital Markets raised their price target on Newmont from $140.00 to $145.00 and gave the company an "outperform" rating in a report on Friday, April 24th. Canadian Imperial Bank of Commerce set a $175.00 price objective on Newmont and gave the stock an "outperform" rating in a report on Monday. Finally, Weiss Ratings downgraded shares of Newmont from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Newmont presently has an average rating of "Moderate Buy" and a consensus price target of $142.20.

Newmont Price Performance

Shares of NEM stock traded down $1.67 during trading hours on Wednesday, hitting $107.83. 889,555 shares of the company's stock were exchanged, compared to its average volume of 9,369,452. The stock's 50-day moving average is $111.08 and its 200-day moving average is $109.23. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.44 and a quick ratio of 2.17. Newmont has a 52 week low of $52.08 and a 52 week high of $134.88. The stock has a market cap of $115.11 billion, a price-to-earnings ratio of 13.99 and a beta of 0.42.

Newmont (NYSE:NEM - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The basic materials company reported $2.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.07 by $0.83. The business had revenue of $7.31 billion for the quarter, compared to the consensus estimate of $6.83 billion. Newmont had a net margin of 33.87% and a return on equity of 27.84%. The firm's quarterly revenue was up 45.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.25 EPS. As a group, research analysts forecast that Newmont will post 9.72 EPS for the current year.

Insider Buying and Selling

In other news, insider David John Thornton sold 2,296 shares of the company's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $110.11, for a total value of $252,812.56. Following the completion of the sale, the insider directly owned 23,163 shares of the company's stock, valued at $2,550,477.93. This represents a 9.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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. Also, EVP Peter Toth sold 3,000 shares of Newmont stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $110.11, for a total transaction of $330,330.00. Following the transaction, the executive vice president directly owned 49,315 shares in the company, valued at $5,430,074.65. The trade was a 5.73% 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. Over the last ninety days, insiders have sold 43,068 shares of company stock worth $4,769,475. Company insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Newmont

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cedar Mountain Advisors LLC bought a new position in Newmont during the first quarter worth about $25,000. Pinnacle Bancorp Inc. acquired a new stake in shares of Newmont during the first quarter worth about $25,000. GoalVest Advisory LLC bought a new position in shares of Newmont during the 4th quarter valued at about $25,000. Swiss RE Ltd. acquired a new position in shares of Newmont in the 4th quarter valued at approximately $26,000. Finally, Cornerstone Planning Group LLC increased its stake in Newmont by 312.1% during the 4th 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 in the last quarter. 68.85% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.