Newmont Co. to Issue Quarterly Dividend of $0.25 (NYSE:NEM)

Newmont Co. (NYSE:NEM) declared a quarterly dividend on Thursday, February 20th, Wall Street Journal reports. Stockholders of record on Tuesday, March 4th will be paid a dividend of 0.25 per share by the basic materials company on Thursday, March 27th. This represents a $1.00 annualized dividend and a dividend yield of 2.21%. The ex-dividend date is Tuesday, March 4th.

Newmont has decreased its dividend by an average of 23.1% annually over the last three years. Newmont has a dividend payout ratio of 26.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect Newmont to earn $3.45 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 29.0%.

Newmont Stock Performance

Shares of NYSE NEM traded down $2.84 during midday trading on Friday, hitting $45.25. 17,229,932 shares of the company’s stock were exchanged, compared to its average volume of 9,447,639. The company has a quick ratio of 1.73, a current ratio of 1.96 and a debt-to-equity ratio of 0.30. Newmont has a 12 month low of $29.42 and a 12 month high of $58.72. The company’s 50 day moving average price is $41.46 and its 200 day moving average price is $46.47. The firm has a market capitalization of $51.52 billion, a PE ratio of -29.77, a price-to-earnings-growth ratio of 0.40 and a beta of 0.52.

Newmont (NYSE:NEM) last issued its earnings results on Thursday, February 20th. The basic materials company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.11 by $0.29. The company had revenue of $5.65 billion during the quarter, compared to the consensus estimate of $5.32 billion. Newmont had a positive return on equity of 9.80% and a negative net margin of 7.03%. As a group, analysts predict that Newmont will post 3.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Bruce R. Brook sold 2,077 shares of the company’s stock in a transaction on Friday, January 10th. The stock was sold at an average price of $40.00, for a total transaction of $83,080.00. Following the completion of the sale, the director now directly owns 52,070 shares in the company, valued at $2,082,800. This represents a 3.84 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Peter Toth sold 3,000 shares of the company’s stock in a transaction on Friday, January 10th. The stock was sold at an average price of $40.00, for a total value of $120,000.00. Following the sale, the executive vice president now owns 82,596 shares of the company’s stock, valued at approximately $3,303,840. This represents a 3.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 28,154 shares of company stock worth $1,166,843 in the last ninety days. 0.06% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on NEM shares. Royal Bank of Canada boosted their price target on Newmont from $47.00 to $52.00 and gave the company a “sector perform” rating in a research note on Tuesday, February 11th. CLSA started coverage on Newmont in a research note on Friday, November 29th. They issued an “underperform” rating for the company. Cibc World Mkts downgraded Newmont from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 28th. Scotiabank reduced their price target on Newmont from $52.00 to $50.00 and set a “sector perform” rating for the company in a research note on Tuesday, January 21st. Finally, CIBC downgraded Newmont from a “sector outperform” rating to a “neutral” rating in a research note on Monday, October 28th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, eight have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, Newmont currently has an average rating of “Moderate Buy” and a consensus target price of $53.37.

About Newmont

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.