Newmont (NYSE:NEM) Hits New 1-Year High – Here’s Why

Shares of Newmont Corporation (NYSE:NEM) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $105.99 and last traded at $105.2260, with a volume of 38934 shares trading hands. The stock had previously closed at $104.73.

Analyst Ratings Changes

NEM has been the subject of a number of research reports. Bank of America raised their price objective on shares of Newmont from $105.00 to $115.00 and gave the company a “buy” rating in a report on Thursday, October 16th. BNP Paribas Exane downgraded shares of Newmont from an “outperform” rating to a “neutral” rating and set a $97.00 price objective on the stock. in a report on Friday, December 5th. UBS Group raised their price objective on Newmont from $105.50 to $125.00 and gave the company a “buy” rating in a research note on Monday, December 1st. Citigroup boosted their price objective on Newmont from $74.00 to $104.00 and gave the stock a “buy” rating in a research report on Wednesday, October 15th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Newmont in a research note on Monday. Five research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $96.37.

Newmont Stock Performance

The business’s fifty day simple moving average is $90.08 and its 200-day simple moving average is $76.95. The firm has a market cap of $114.87 billion, a P/E ratio of 16.35, a price-to-earnings-growth ratio of 0.73 and a beta of 0.41. The company has a current ratio of 2.04, a quick ratio of 1.74 and a debt-to-equity ratio of 0.17.

Newmont (NYSE:NEM) last posted its earnings results on Thursday, October 23rd. The basic materials company reported $1.71 EPS for the quarter, topping the consensus estimate of $1.27 by $0.44. Newmont had a net margin of 33.42% and a return on equity of 20.35%. The firm had revenue of $5.52 billion during the quarter, compared to analysts’ expectations of $5.14 billion. During the same period last year, the company posted $0.81 EPS. The company’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 earnings per share for the current year.

Newmont Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, December 22nd. Stockholders of record on Wednesday, November 26th were given a $0.25 dividend. The ex-dividend date of this dividend was Wednesday, November 26th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.9%. Newmont’s dividend payout ratio is currently 15.53%.

Insider Activity at Newmont

In other news, Director Bruce R. Brook sold 2,080 shares of the company’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $92.36, for a total value of $192,108.80. Following the transaction, the director owned 32,709 shares in the company, valued at approximately $3,021,003.24. This represents a 5.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Thomas Ronald Palmer sold 5,000 shares of Newmont stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $81.34, for a total value of $406,700.00. Following the completion of the sale, the chief executive officer directly owned 279,923 shares of the company’s stock, valued at approximately $22,768,936.82. The trade was a 1.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 11,240 shares of company stock worth $943,985 in the last 90 days. 0.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Newmont

A number of large investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in Newmont in the 2nd quarter worth approximately $919,170,000. Invesco Ltd. increased its position in Newmont by 45.0% during the second quarter. Invesco Ltd. now owns 15,587,917 shares of the basic materials company’s stock valued at $908,152,000 after acquiring an additional 4,839,447 shares during the last quarter. Boston Partners raised its stake in shares of Newmont by 4,090.7% in the second quarter. Boston Partners now owns 4,643,057 shares of the basic materials company’s stock valued at $272,558,000 after acquiring an additional 4,532,263 shares during the period. Assenagon Asset Management S.A. lifted its holdings in shares of Newmont by 1,502.5% in the 2nd quarter. Assenagon Asset Management S.A. now owns 4,692,606 shares of the basic materials company’s stock worth $273,391,000 after acquiring an additional 4,399,778 shares during the last quarter. Finally, LSV Asset Management purchased a new position in shares of Newmont during the 2nd quarter worth about $187,206,000. Institutional investors own 68.85% of the company’s stock.

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.