The Goldman Sachs Group Lowers Newmont (NYSE:NEM) Price Target to $122.50

Key Points

• Goldman Sachs lowered its price target on Newmont to $122.50 from $125.10, while keeping a buy rating. The new target still implies about 11.6% upside from the previous close.
• Analyst sentiment remains broadly positive: Newmont has an average Moderate Buy rating and a consensus price target of $142.07, even as some firms have recently adjusted targets up or down.
• Newmont shares rose 2.1% to $109.74, and the company’s latest earnings beat expectations with $2.90 EPS on $7.31 billion in revenue, both above analyst forecasts.

Newmont (NYSE:NEM - Get Free Report) had its price objective cut by analysts at The Goldman Sachs Group from $125.10 to $122.50 in a research report issued to clients and investors on Thursday,MarketScreener reports. The brokerage presently has a "buy" rating on the basic materials company's stock. The Goldman Sachs Group's price objective would indicate a potential upside of 11.63% from the stock's previous close.

A number of other analysts also recently issued reports on NEM. BNP Paribas Exane lifted their price objective on shares of Newmont from $123.00 to $128.00 and gave the company a "neutral" rating in a report on Monday, March 2nd. Sanford C. Bernstein raised shares of Newmont from a "market perform" rating to an "outperform" rating and raised their target price for the company from $121.00 to $157.00 in a research report on Friday, February 27th. Royal Bank Of Canada lowered their price target on shares of Newmont from $160.00 to $140.00 and set an "outperform" rating on the stock in a research note on Wednesday. Citigroup boosted their price target on shares of Newmont from $118.00 to $150.00 and gave the stock a "buy" rating in a research report on Tuesday, March 3rd. Finally, National Bank Financial increased their price objective on shares of Newmont from $130.00 to $140.00 and gave the stock a "sector perform" rating in a research note on Friday, April 24th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $142.07.

Newmont Stock Up 2.1%

Shares of Newmont stock traded up $2.27 during trading on Thursday, reaching $109.74. The stock had a trading volume of 1,870,148 shares, compared to its average volume of 9,347,098. The company has a current ratio of 2.44, a quick ratio of 2.17 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $117.15 billion, a price-to-earnings ratio of 14.23, a P/E/G ratio of 1.82 and a beta of 0.42. The stock has a fifty day moving average price of $111.55 and a two-hundred day moving average price of $109.47. Newmont has a 52 week low of $52.08 and a 52 week high of $134.88.

Newmont (NYSE:NEM - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The basic materials company reported $2.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.07 by $0.83. The business had revenue of $7.31 billion during the quarter, compared to the consensus estimate of $6.83 billion. Newmont had a return on equity of 27.84% and a net margin of 33.87%.Newmont's quarterly revenue was up 45.8% on a year-over-year basis. During the same period last year, the company earned $1.25 earnings per share. Sell-side analysts predict that Newmont will post 9.91 EPS for the current fiscal year.

Insiders Place Their Bets

In other Newmont news, EVP Peter Toth sold 3,000 shares of the firm's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $105.32, for a total value of $315,960.00. Following the transaction, the executive vice president directly owned 46,315 shares of the company's stock, valued at $4,877,895.80. This trade represents a 6.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Peter Wexler sold 13,378 shares of the firm's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $110.11, for a total value of $1,473,051.58. Following the completion of the sale, the executive vice president directly owned 67,865 shares in the company, valued at approximately $7,472,615.15. This represents a 16.47% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders sold a total of 49,950 shares of company stock worth $5,494,288 over the last three months. 0.06% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Newmont

Hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in shares of Newmont during the 4th quarter valued at $1,443,128,000. Van ECK Associates Corp increased its holdings in Newmont by 23.4% in the 4th quarter. Van ECK Associates Corp now owns 29,780,063 shares of the basic materials company's stock worth $2,973,539,000 after purchasing an additional 5,643,496 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in Newmont by 110.4% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 8,743,228 shares of the basic materials company's stock valued at $873,011,000 after purchasing an additional 4,588,018 shares during the last quarter. AQR Capital Management LLC boosted its stake in shares of Newmont by 82.5% during the fourth quarter. AQR Capital Management LLC now owns 7,402,278 shares of the basic materials company's stock valued at $739,117,000 after purchasing an additional 3,345,543 shares in the last quarter. Finally, Assetmark Inc. grew its holdings in shares of Newmont by 398.3% during the fourth quarter. Assetmark Inc. now owns 2,870,495 shares of the basic materials company's stock worth $286,619,000 after purchasing an additional 2,294,396 shares during the last quarter. 68.85% of the stock is currently owned by institutional investors and hedge funds.

More Newmont News

Here are the key news stories impacting Newmont this week:

• Positive Sentiment: RBC Capital kept an outperform view on Newmont and still sees roughly 30% upside, even after trimming its price target to $140 from $160. RBC price target update
• Positive Sentiment: Seeking Alpha highlighted Newmont’s strong cash generation, a new $6 billion buyback authorization, and long-term gold tailwinds, reinforcing the bullish case for the stock. Newmont: Gold's Volatility Creates A Long-Term Opportunity
• Neutral Sentiment: Newmont’s stock is drawing more investor attention, with recent coverage noting it remains a trending name, but that is more a sign of interest than a new catalyst. Newmont Corporation (NEM) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Both CEO Natascha Viljoen and EVP Peter Toth sold shares, but the sales were made under pre-arranged 10b5-1 plans, which makes them less likely to signal concern about the business. Peter Toth Sells 3,000 Shares of Newmont NYSE: NEM Stock
• Neutral Sentiment: Some market commentary says Newmont is trading near fair value after a very large one-year gain, suggesting investors may be reassessing how much upside remains. A Look At Newmont (NEM) Valuation As Shares Trade Near Estimated Fair Value
• Negative Sentiment: One recent article warned that Newmont may have already priced in much of its recent rally, which could cap near-term gains if gold sentiment cools. Is It Too Late To Reassess Newmont (NEM) After Its 1 Year 96% Surge?

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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