Newmont (NYSE:NEM) Shares Down 2.7% – Here’s Why

Newmont Corporation (NYSE:NEM)’s share price dropped 2.7% on Thursday . The stock traded as low as $114.11 and last traded at $116.14. Approximately 10,794,151 shares changed hands during mid-day trading, an increase of 8% from the average daily volume of 10,028,750 shares. The stock had previously closed at $119.37.

Analysts Set New Price Targets

A number of research firms recently issued reports on NEM. UBS Group lowered their target price on Newmont from $160.00 to $150.00 and set a “buy” rating on the stock in a report on Monday, February 23rd. Zacks Research downgraded shares of Newmont from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 18th. Bank of America increased their target price on shares of Newmont from $134.00 to $151.00 and gave the company a “buy” rating in a research note on Thursday, February 26th. BMO Capital Markets decreased their price target on shares of Newmont from $145.00 to $140.00 and set an “outperform” rating on the stock in a research report on Friday, February 20th. Finally, Canadian Imperial Bank of Commerce dropped their price target on Newmont from $71.00 to $67.00 in a report on Friday, February 27th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $133.68.

Newmont Stock Down 2.7%

The firm has a market cap of $126.35 billion, a PE ratio of 18.18, a P/E/G ratio of 0.96 and a beta of 0.39. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.29 and a quick ratio of 2.02. The business has a fifty day moving average price of $116.81 and a two-hundred day moving average price of $96.27.

Newmont (NYSE:NEM) last released its earnings results on Thursday, February 19th. The basic materials company reported $2.52 earnings per share for the quarter, beating the consensus estimate of $1.81 by $0.71. The company had revenue of $6.82 billion for the quarter, compared to analysts’ expectations of $6.18 billion. Newmont had a return on equity of 23.28% and a net margin of 31.25%.The business’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.40 EPS. On average, analysts anticipate that Newmont Corporation will post 3.45 EPS for the current fiscal year.

Newmont Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Shareholders of record on Tuesday, March 3rd will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Tuesday, March 3rd. This is a positive change from Newmont’s previous quarterly dividend of $0.25. Newmont’s payout ratio is currently 16.28%.

Hedge Funds Weigh In On Newmont

A number of hedge funds have recently modified their holdings of NEM. GoalVest Advisory LLC acquired a new position in Newmont in the 4th quarter worth about $25,000. Physician Wealth Advisors Inc. grew its stake 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 valued at $26,000 after buying an additional 236 shares in the last quarter. Swiss RE Ltd. acquired a new position in Newmont in the fourth quarter worth approximately $26,000. Cornerstone Planning Group LLC raised its position in Newmont by 312.1% during the fourth quarter. Cornerstone Planning Group LLC now owns 272 shares of the basic materials company’s stock valued at $27,000 after acquiring an additional 206 shares in the last quarter. Finally, JPL Wealth Management LLC acquired a new stake in Newmont in the third quarter valued at approximately $27,000. 68.85% of the stock is owned by institutional investors and hedge funds.

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.