Investors Buy High Volume of Call Options on Newmont (NYSE:NEM)

Newmont Corporation (NYSE:NEM) was the target of some unusual options trading on Wednesday. Stock investors bought 42,737 call options on the stock. This represents an increase of 63% compared to the average volume of 26,197 call options.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. BMO Capital Markets raised their price target on Newmont from $140.00 to $145.00 and gave the stock an “outperform” rating in a research note on Friday, April 24th. Argus raised their price target on Newmont from $94.00 to $125.00 and gave the stock a “buy” rating in a research note on Thursday, April 23rd. National Bank Financial raised their price target on Newmont from $130.00 to $140.00 and gave the stock a “sector perform” rating in a research note on Friday, April 24th. Barclays assumed coverage on Newmont in a research note on Thursday, May 21st. They issued an “overweight” rating and a $133.00 price target on the stock. Finally, UBS Group dropped 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. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Newmont has a consensus rating of “Moderate Buy” and an average price target of $142.26.

Insider Activity

In other news, insider David John Thornton sold 2,296 shares of the company’s stock in a transaction on Friday, May 1st. The stock was sold at an average price of $110.11, for a total transaction of $252,812.56. Following the transaction, 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 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 Wexler sold 13,378 shares of the company’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 transaction, the executive vice president directly owned 67,865 shares in the company, valued at approximately $7,472,615.15. The trade was a 16.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last 90 days, insiders sold 49,950 shares of company stock valued at $5,494,288. Corporate insiders own 0.06% of the company’s stock.

Hedge Funds Weigh In On Newmont

A number of institutional investors have recently bought and sold shares of NEM. GoalVest Advisory LLC bought a new position in Newmont in the 4th quarter worth $25,000. Pinnacle Bancorp Inc. bought a new position in Newmont in the 1st quarter worth $25,000. Cedar Mountain Advisors LLC bought a new position in Newmont in the 1st quarter worth $25,000. Swiss RE Ltd. bought a new position in Newmont in the 4th quarter worth $26,000. Finally, Cornerstone Planning Group LLC raised its holdings in Newmont by 312.1% in 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 during the period. 68.85% of the stock is owned by institutional investors.

Newmont Stock Performance

Shares of NEM stock traded down $5.78 on Wednesday, reaching $92.76. The stock had a trading volume of 10,148,117 shares, compared to its average volume of 9,401,561. Newmont has a 1 year low of $52.42 and a 1 year high of $134.88. The company has a 50 day simple moving average of $111.63 and a 200 day simple moving average of $109.87. The stock has a market cap of $99.02 billion, a P/E ratio of 12.03, a price-to-earnings-growth ratio of 1.64 and a beta of 0.42. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.17 and a current ratio of 2.44.

Newmont (NYSE:NEM) last announced its earnings results on Thursday, April 23rd. The basic materials company reported $2.90 EPS for the quarter, topping analysts’ consensus estimates of $2.07 by $0.83. Newmont had a return on equity of 27.84% and a net margin of 33.87%.The company had revenue of $7.31 billion for the quarter, compared to analysts’ expectations of $6.83 billion. During the same period last year, the firm earned $1.25 EPS. Newmont’s revenue for the quarter was up 45.8% compared to the same quarter last year. Equities research analysts expect that Newmont will post 9.91 EPS for the current year.

Newmont Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 22nd. Investors of record on Wednesday, May 27th will be issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Wednesday, May 27th. Newmont’s dividend payout ratio (DPR) is currently 13.49%.

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.