Newmont (NYSE:NEM) Shares Gap Up – Should You Buy?

Shares of Newmont Corporation (NYSE:NEM) gapped up before the market opened on Wednesday . The stock had previously closed at $115.98, but opened at $123.83. Newmont shares last traded at $125.0810, with a volume of 1,458,082 shares.

Analysts Set New Price Targets

Several research firms have issued reports on NEM. Wall Street Zen downgraded Newmont from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Macquarie Infrastructure dropped their target price on Newmont from $133.00 to $123.00 and set an “outperform” rating for the company in a research report on Monday, June 15th. National Bank Financial cut their price target on Newmont from $140.00 to $125.00 and set a “sector perform” rating on the stock in a research note on Tuesday, July 14th. BNP Paribas Exane lowered their price objective on Newmont from $111.00 to $102.00 and set a “neutral” rating for the company in a research report on Tuesday, July 21st. Finally, BMO Capital Markets reduced their target price on shares of Newmont from $145.00 to $135.00 and set an “outperform” rating on the stock in a research note on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $132.59.

Newmont Stock Up 8.5%

The company has a debt-to-equity ratio of 0.15, a current ratio of 2.55 and a quick ratio of 2.26. The stock has a market cap of $132.62 billion, a price-to-earnings ratio of 15.89, a price-to-earnings-growth ratio of 1.31 and a beta of 0.47. The firm has a 50 day simple moving average of $99.71 and a two-hundred day simple moving average of $108.70.

Newmont (NYSE:NEM) last posted its earnings results on Thursday, July 23rd. The basic materials company reported $2.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.05 by $0.05. The company had revenue of $6.12 billion during the quarter, compared to analyst estimates of $6.35 billion. Newmont had a return on equity of 29.10% and a net margin of 33.36%.During the same period in the previous year, the company earned $1.43 EPS. As a group, sell-side analysts expect that Newmont Corporation will post 9 EPS for the current year.

Newmont Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Thursday, September 3rd will be issued a $0.26 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $1.04 annualized dividend and a yield of 0.8%. Newmont’s dividend payout ratio (DPR) is 13.13%.

Insider Activity

In related news, CFO Brian Tabolt sold 11,445 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $105.09, for a total transaction of $1,202,755.05. Following the sale, the chief financial officer owned 29,324 shares of the company’s stock, valued at approximately $3,081,659.16. This trade represents a 28.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Natascha Viljoen sold 7,764 shares of Newmont stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $104.00, for a total transaction of $807,456.00. Following the completion of the transaction, the chief executive officer directly owned 135,235 shares in the company, valued at approximately $14,064,440. The trade was a 5.43% 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. Insiders sold 32,091 shares of company stock valued at $3,292,513 in the last quarter. Company insiders own 0.06% of the company’s stock.

Institutional Investors Weigh In On Newmont

Institutional investors have recently bought and sold shares of the company. Leonteq Securities AG bought a new stake in Newmont in the fourth quarter valued at $9,018,000. ARS Investment Partners LLC lifted its position in shares of Newmont by 3.6% in the 4th quarter. ARS Investment Partners LLC now owns 697,063 shares of the basic materials company’s stock worth $69,602,000 after purchasing an additional 23,900 shares during the period. Private Advisory Group LLC purchased a new position in shares of Newmont during the second quarter valued at about $10,430,000. Thrivent Financial for Lutherans increased its position in shares of Newmont by 37.7% during the fourth quarter. Thrivent Financial for Lutherans now owns 214,282 shares of the basic materials company’s stock valued at $21,440,000 after buying an additional 58,690 shares during the period. Finally, iA Global Asset Management Inc. raised its stake in Newmont by 156.9% in the fourth quarter. iA Global Asset Management Inc. now owns 221,790 shares of the basic materials company’s stock worth $22,146,000 after buying an additional 135,446 shares in the last quarter. 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.