Newmont (NYSE:NEM) Hits New 1-Year High – Should You Buy?

Newmont Corporation (NYSE:NEM) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $107.37 and last traded at $107.0290, with a volume of 1550663 shares changing hands. The stock had previously closed at $103.53.

Wall Street Analyst Weigh In

NEM has been the topic of a number of recent research reports. The Goldman Sachs Group set a $104.30 price objective on Newmont and gave the company a “buy” rating in a research report on Sunday, October 12th. Scotiabank upgraded Newmont from a “sector perform” rating to a “sector outperform” rating and increased their price target for the company from $71.50 to $114.00 in a report on Thursday, October 23rd. BNP Paribas downgraded Newmont from an “outperform” rating to a “hold” rating and set a $97.00 price target for the company. in a research report on Friday, December 5th. Raymond James Financial reaffirmed an “outperform” rating and set a $111.00 price objective on shares of Newmont in a research note on Monday, December 29th. Finally, Jefferies Financial Group reissued a “buy” rating and issued a $120.00 target price on shares of Newmont in a research note on Sunday, December 7th. Five equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $97.08.

Newmont Trading Down 1.0%

The stock’s 50-day moving average price is $93.29 and its 200 day moving average price is $80.04. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.04 and a quick ratio of 1.74. The firm has a market capitalization of $116.66 billion, a PE ratio of 16.60, a price-to-earnings-growth ratio of 0.84 and a beta of 0.41.

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

Newmont Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 22nd. Stockholders of record on Wednesday, November 26th were paid a dividend of $0.25 per share. The ex-dividend date was Wednesday, November 26th. This represents a $1.00 annualized dividend and a dividend yield of 0.9%. Newmont’s dividend payout ratio (DPR) is currently 15.53%.

Insider Activity

In related news, CEO Thomas Ronald Palmer sold 5,000 shares of the company’s stock in a transaction dated Monday, November 3rd. The shares were 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 $22,768,936.82. This represents a 1.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Bruce R. Brook sold 2,080 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $92.36, for a total transaction of $192,108.80. Following the transaction, the director directly owned 32,709 shares in the company, valued at $3,021,003.24. This trade represents a 5.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 9,160 shares of company stock valued at $767,206 over the last 90 days. 0.05% of the stock is currently owned by corporate insiders.

Institutional Trading of Newmont

A number of hedge funds have recently bought and sold shares of the stock. GoalVest Advisory LLC bought a new position in shares of Newmont in the 4th quarter worth $25,000. Physician Wealth Advisors Inc. grew its position in shares of Newmont by 327.8% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 308 shares of the basic materials company’s stock worth $26,000 after buying an additional 236 shares during the last quarter. Concord Wealth Partners grew its position in shares of Newmont by 534.7% in the 2nd quarter. Concord Wealth Partners now owns 457 shares of the basic materials company’s stock worth $27,000 after buying an additional 385 shares during the last quarter. JPL Wealth Management LLC bought a new position in shares of Newmont during the 3rd quarter worth approximately $27,000. Finally, Evermay Wealth Management LLC lifted its position in Newmont by 408.2% during the second quarter. Evermay Wealth Management LLC now owns 498 shares of the basic materials company’s stock valued at $29,000 after acquiring an additional 400 shares during the last quarter. Hedge funds and other institutional investors own 68.85% of the company’s stock.

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.