Newmont (NYSE:NEM) Sees Large Volume Increase – Should You Buy?

Newmont Co. (NYSE:NEM) shares saw an uptick in trading volume on Friday . 6,348,732 shares traded hands during mid-day trading, a decline of 38% from the previous session’s volume of 10,256,534 shares.The stock last traded at $47.35 and had previously closed at $49.25.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on NEM. UBS Group raised their price objective on shares of Newmont from $65.00 to $67.00 and gave the stock a “buy” rating in a research note on Tuesday, October 15th. CIBC upgraded Newmont from a “neutral” rating to a “sector outperform” rating and raised their target price for the company from $46.00 to $61.00 in a research report on Wednesday, July 10th. Cibc World Mkts raised Newmont from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 10th. BMO Capital Markets upped their target price on Newmont from $56.00 to $57.00 and gave the stock an “outperform” rating in a research note on Thursday, July 25th. Finally, Jefferies Financial Group boosted their price target on shares of Newmont from $54.00 to $63.00 and gave the stock a “buy” rating in a report on Friday, October 4th. Six investment analysts have rated the stock with a hold rating, nine have given a buy rating and three have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $54.15.

Newmont Stock Performance

The stock has a market cap of $55.93 billion, a price-to-earnings ratio of -23.23, a PEG ratio of 0.49 and a beta of 0.50. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.11 and a quick ratio of 1.85. The firm has a fifty day moving average of $53.43 and a 200 day moving average of $46.74.

Newmont (NYSE:NEM) last posted its quarterly earnings results on Wednesday, October 23rd. The basic materials company reported $0.81 EPS for the quarter, missing the consensus estimate of $0.86 by ($0.05). Newmont had a positive return on equity of 8.35% and a negative net margin of 13.16%. The company had revenue of $4.61 billion for the quarter, compared to analysts’ expectations of $4.67 billion. During the same quarter in the prior year, the firm earned $0.36 EPS. The firm’s revenue was up 84.7% on a year-over-year basis. As a group, sell-side analysts forecast that Newmont Co. will post 3.07 EPS for the current year.

Newmont Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, December 23rd. Stockholders of record on Wednesday, November 27th will be paid a $0.25 dividend. The ex-dividend date is Wednesday, November 27th. This represents a $1.00 annualized dividend and a dividend yield of 2.05%. Newmont’s dividend payout ratio (DPR) is -47.17%.

Insider Transactions at Newmont

In related news, EVP Peter Toth sold 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $52.47, for a total value of $157,410.00. Following the transaction, the executive vice president now directly owns 94,596 shares in the company, valued at approximately $4,963,452.12. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. In related news, CEO Thomas Ronald Palmer sold 20,000 shares of the stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $52.47, for a total transaction of $1,049,400.00. Following the completion of the transaction, the chief executive officer now owns 291,469 shares of the company’s stock, valued at approximately $15,293,378.43. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Peter Toth sold 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $52.47, for a total value of $157,410.00. Following the completion of the sale, the executive vice president now directly owns 94,596 shares in the company, valued at approximately $4,963,452.12. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 66,000 shares of company stock worth $3,434,640 in the last 90 days. Insiders own 0.06% of the company’s stock.

Institutional Investors Weigh In On Newmont

Several institutional investors and hedge funds have recently modified their holdings of the company. Hoese & Co LLP acquired a new position in Newmont in the 3rd quarter valued at about $27,000. Meeder Asset Management Inc. acquired a new position in shares of Newmont in the second quarter valued at approximately $27,000. LRI Investments LLC purchased a new stake in Newmont during the 1st quarter worth approximately $25,000. Northwest Investment Counselors LLC acquired a new stake in Newmont during the 3rd quarter worth approximately $48,000. Finally, Heritage Wealth Advisors boosted its position in Newmont by 1,310.4% in the 1st quarter. Heritage Wealth Advisors now owns 945 shares of the basic materials company’s stock valued at $34,000 after buying an additional 878 shares during the period. Hedge funds and other institutional investors own 68.85% of the company’s stock.

Newmont Company Profile

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana.