Newmont (NYSE:NEM) Trading Down 5.8% – Here’s Why

Shares of Newmont Corporation (NYSE:NEM) were down 5.8% during trading on Monday . The company traded as low as $97.67 and last traded at $99.6580. Approximately 9,515,628 shares were traded during mid-day trading, a decline of 17% from the average daily volume of 11,456,684 shares. The stock had previously closed at $105.78.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Citigroup raised their target price on shares of Newmont from $74.00 to $104.00 and gave the company a “buy” rating in a research report on Wednesday, October 15th. UBS Group increased their price objective on shares of Newmont from $105.50 to $125.00 and gave the stock a “buy” rating in a research note on Monday, December 1st. Bank of America increased their price target on Newmont from $105.00 to $115.00 and gave the company a “buy” rating in a research report on Thursday, October 16th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Newmont in a research note on Monday. Finally, BNP Paribas lowered shares of Newmont from an “outperform” rating to a “hold” rating and set a $97.00 price target on the stock. in a research report on Friday, December 5th. Five investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $97.08.

Newmont Stock Up 2.0%

The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.74 and a current ratio of 2.04. The firm has a fifty day simple moving average of $90.79 and a 200-day simple moving average of $78.28. The firm has a market cap of $111.09 billion, a price-to-earnings ratio of 15.81, a P/E/G ratio of 0.69 and a beta of 0.41.

Newmont (NYSE:NEM) last posted its earnings results on Thursday, October 23rd. The basic materials company reported $1.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.27 by $0.44. Newmont had a net margin of 33.42% and a return on equity of 20.35%. The company had revenue of $5.52 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same quarter last year, the company posted $0.81 EPS. Newmont’s quarterly revenue was up 20.0% compared to the same quarter last year. As a group, sell-side analysts expect that Newmont Corporation will post 3.45 EPS for the current year.

Newmont Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, December 22nd. Investors of record on Wednesday, November 26th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Wednesday, November 26th. Newmont’s dividend payout ratio (DPR) is presently 15.53%.

Insiders Place Their Bets

In other news, Director Bruce R. Brook sold 2,080 shares of Newmont stock in a transaction on Monday, December 1st. The stock was sold at an average price of $92.36, for a total transaction of $192,108.80. Following the completion of the sale, the director owned 32,709 shares of the company’s stock, valued at approximately $3,021,003.24. This trade represents a 5.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Thomas Ronald Palmer sold 5,000 shares of the firm’s stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $81.34, for a total transaction of $406,700.00. Following the transaction, the chief executive officer directly owned 279,923 shares in the company, valued at approximately $22,768,936.82. This represents a 1.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 9,160 shares of company stock worth $767,206. Insiders own 0.05% of the company’s stock.

Institutional Investors Weigh In On Newmont

A number of large investors have recently bought and sold shares of the company. Triumph Capital Management acquired a new stake in shares of Newmont during the 3rd quarter worth approximately $128,000. Sherman Porfolios LLC acquired a new stake in shares of Newmont in the 3rd quarter valued at $971,000. AIA Group Ltd increased its stake in shares of Newmont by 38.7% in the 3rd quarter. AIA Group Ltd now owns 114,828 shares of the basic materials company’s stock valued at $9,681,000 after purchasing an additional 32,050 shares during the last quarter. Keel Point LLC raised its holdings in shares of Newmont by 4.0% during the 3rd quarter. Keel Point LLC now owns 14,138 shares of the basic materials company’s stock worth $1,192,000 after buying an additional 548 shares in the last quarter. Finally, Mirabella Financial Services LLP acquired a new stake in Newmont in the third quarter valued at about $1,291,000. 68.85% of the stock is currently owned by institutional investors and hedge funds.

Newmont Company Profile

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.