Newmont (NYSE:NEM) Trading Up 2.2% – Should You Buy?

Shares of Newmont Corporation (NYSE:NEM) shot up 2.2% during mid-day trading on Monday . The company traded as high as $100.61 and last traded at $97.9440. 17,733,896 shares were traded during mid-day trading, an increase of 64% from the average session volume of 10,799,077 shares. The stock had previously closed at $95.80.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on NEM. Canaccord Genuity Group lifted their price objective on shares of Newmont from $115.00 to $140.00 and gave the company a “buy” rating in a report on Friday, January 23rd. Wall Street Zen upgraded Newmont from a “hold” rating to a “buy” rating in a research note on Sunday, March 8th. Citigroup boosted their target price on Newmont from $118.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, March 3rd. Macquarie Infrastructure increased their price target on Newmont from $115.00 to $126.00 and gave the company an “outperform” rating in a research report on Friday, February 6th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Newmont in a research report on Monday, December 29th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $134.10.

Newmont Price Performance

The stock has a fifty day simple moving average of $117.82 and a 200-day simple moving average of $100.06. The company has a market capitalization of $110.50 billion, a PE ratio of 15.90, a P/E/G ratio of 0.76 and a beta of 0.39. The company has a current ratio of 2.29, a quick ratio of 2.02 and a debt-to-equity ratio of 0.16.

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

Newmont Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Tuesday, March 3rd will be given a $0.26 dividend. This is a boost from Newmont’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $1.04 dividend on an annualized basis and a dividend yield of 1.0%. Newmont’s payout ratio is currently 16.28%.

Insider Activity at Newmont

In other news, EVP Peter Toth sold 3,000 shares of Newmont stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $108.00, for a total value of $324,000.00. Following the transaction, the executive vice president directly owned 55,315 shares of the company’s stock, valued at $5,974,020. The trade was a 5.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider David James Fry sold 18,394 shares of the company’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $111.45, for a total transaction of $2,050,011.30. Following the completion of the sale, the insider owned 17,147 shares of the company’s stock, valued at approximately $1,911,033.15. This trade represents a 51.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.05% of the company’s stock.

Hedge Funds Weigh In On Newmont

Several institutional investors have recently added to or reduced their stakes in the stock. GoalVest Advisory LLC acquired a new position in shares of Newmont in the fourth quarter valued at approximately $25,000. Swiss RE Ltd. acquired a new position in Newmont in the 4th quarter valued at $26,000. Cornerstone Planning Group LLC raised its position in Newmont by 312.1% during the 4th quarter. Cornerstone Planning Group LLC now owns 272 shares of the basic materials company’s stock worth $27,000 after buying an additional 206 shares during the last quarter. Lodestone Wealth Management LLC acquired a new stake in shares of Newmont in the 4th quarter worth $28,000. Finally, Laurel Wealth Advisors LLC purchased a new stake in shares of Newmont in the fourth quarter valued at about $30,000. Institutional investors and hedge funds 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.