Zacks Investment Research Lowers Newmont Goldcorp (NEM) to Hold
According to Zacks, “Newmont Goldcorp’s profits declined year over year in first-quarter 2019. Adjusted earnings beat the Zacks Consensus Estimate, while sales trailed the same. The company is making notable progress with growth projects. We are also impressed with its efforts to reduce debt and improve efficiency. The acquisition of CC&V also marks a significant opportunity. Moreover, the recently completed merger with Goldcorp is expected to be value-accretive to the company's cash flow. It should also generate significant synergies. However, Newmont Goldcorp has underperformed the industry it belongs to in the past year. It faces headwinds from high production costs on year over year comparison basis. It is also exposed to a highly volatile gold price environment. Lack of growth in the company’s gold reserves is another concern.”
Other analysts have also recently issued research reports about the company. Deutsche Bank restated a hold rating and issued a $36.00 price target (up previously from $35.00) on shares of Newmont Goldcorp in a report on Wednesday, April 10th. Raymond James set a $47.00 price objective on Newmont Goldcorp and gave the company an outperform rating in a research note on Tuesday, March 26th. TheStreet lowered Newmont Goldcorp from a b- rating to a c rating in a research note on Wednesday, May 1st. Royal Bank of Canada reduced their price objective on Newmont Goldcorp to $39.00 and set an underperform rating on the stock in a research note on Monday, April 8th. Finally, Barclays reaffirmed a buy rating and issued a $39.00 price objective on shares of Newmont Goldcorp in a research note on Thursday, March 28th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and nine have assigned a buy rating to the company’s stock. The company presently has an average rating of Hold and a consensus target price of $40.96.
Newmont Goldcorp (NYSE:NEM) last posted its quarterly earnings results on Thursday, April 25th. The basic materials company reported $0.33 EPS for the quarter, beating the consensus estimate of $0.26 by $0.07. The company had revenue of $1.80 billion during the quarter, compared to analysts’ expectations of $1.81 billion. Newmont Goldcorp had a return on equity of 6.13% and a net margin of 3.26%. The firm’s revenue was down .8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.35 EPS. Equities research analysts anticipate that Newmont Goldcorp will post 1.39 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 20th. Shareholders of record on Thursday, June 6th will be given a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.82%. The ex-dividend date of this dividend is Wednesday, June 5th. Newmont Goldcorp’s payout ratio is 41.48%.
In other Newmont Goldcorp news, EVP Elaine J. Dorward-King sold 3,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 1st. The stock was sold at an average price of $30.90, for a total value of $92,700.00. Following the transaction, the executive vice president now directly owns 142,122 shares of the company’s stock, valued at approximately $4,391,569.80. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Thomas Ronald Palmer sold 1,250 shares of the company’s stock in a transaction that occurred on Friday, March 1st. The shares were sold at an average price of $33.90, for a total value of $42,375.00. Following the completion of the transaction, the chief operating officer now directly owns 277,823 shares in the company, valued at $9,418,199.70. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 43,850 shares of company stock worth $1,544,937. 0.44% of the stock is currently owned by corporate insiders.
Several large investors have recently added to or reduced their stakes in NEM. BlackRock Inc. increased its holdings in shares of Newmont Goldcorp by 8.4% during the 1st quarter. BlackRock Inc. now owns 85,829,069 shares of the basic materials company’s stock valued at $3,070,105,000 after acquiring an additional 6,653,939 shares during the last quarter. Vanguard Group Inc lifted its position in shares of Newmont Goldcorp by 1.1% during the 3rd quarter. Vanguard Group Inc now owns 57,312,640 shares of the basic materials company’s stock worth $1,730,842,000 after buying an additional 620,141 shares during the period. Flossbach Von Storch AG increased its holdings in Newmont Goldcorp by 7.8% during the 1st quarter. Flossbach Von Storch AG now owns 15,289,352 shares of the basic materials company’s stock valued at $546,900,000 after purchasing an additional 1,107,490 shares in the last quarter. First Eagle Investment Management LLC increased its holdings in Newmont Goldcorp by 2.6% during the 1st quarter. First Eagle Investment Management LLC now owns 12,020,757 shares of the basic materials company’s stock valued at $429,982,000 after purchasing an additional 299,684 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in Newmont Goldcorp by 10.4% during the 4th quarter. Bank of New York Mellon Corp now owns 8,602,670 shares of the basic materials company’s stock valued at $298,082,000 after purchasing an additional 812,109 shares in the last quarter. 87.57% of the stock is owned by institutional investors.
Newmont Goldcorp Company Profile
Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold, copper, and silver. Its operations and/or assets are located in the United States, Australia, Peru, Ghana, and Suriname. As of December 31, 2018, the company had proven and probable gold reserves of 65.4 million ounces and an aggregate land position of approximately 24,000 square miles.
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