Newmont Sees Unusually High Options Volume (NYSE:NEM)

Newmont Co. (NYSE:NEM) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 68,812 put options on the company. This is an increase of approximately 72% compared to the average daily volume of 39,937 put options.

Newmont Price Performance

NEM traded up $0.04 during trading on Wednesday, hitting $42.04. The stock had a trading volume of 6,896,574 shares, compared to its average volume of 10,520,733. Newmont has a twelve month low of $29.42 and a twelve month high of $58.72. The company’s 50-day moving average price is $49.80 and its 200 day moving average price is $47.50. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.73 and a current ratio of 1.96.

Newmont (NYSE:NEM) last announced its 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). The company had revenue of $4.61 billion for the quarter, compared to analysts’ expectations of $4.67 billion. Newmont had a negative net margin of 7.03% and a positive return on equity of 9.80%. The company’s revenue for the quarter was up 84.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.36 earnings per share. As a group, equities research analysts forecast that Newmont will post 3.08 earnings per share for the current fiscal year.

Newmont Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 23rd. Investors of record on Wednesday, November 27th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.38%. The ex-dividend date of this dividend is Wednesday, November 27th. Newmont’s payout ratio is -65.79%.

Insider Activity at Newmont

In other news, EVP Peter Toth sold 3,000 shares of the stock in a transaction that occurred on Tuesday, October 1st. The stock was sold at an average price of $53.81, for a total transaction of $161,430.00. Following the transaction, the executive vice president now owns 91,596 shares in the company, valued at $4,928,780.76. This trade represents a 3.17 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Thomas Ronald Palmer sold 20,000 shares of the stock in a transaction that occurred on Tuesday, October 1st. The shares were sold at an average price of $53.81, for a total value of $1,076,200.00. Following the transaction, the chief executive officer now owns 271,469 shares in the company, valued at $14,607,746.89. This trade represents a 6.86 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 46,000 shares of company stock valued at $2,444,440. Corporate insiders own 0.06% of the company’s stock.

Institutional Investors Weigh In On Newmont

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Avior Wealth Management LLC lifted its holdings in Newmont by 191.8% during the 3rd quarter. Avior Wealth Management LLC now owns 496 shares of the basic materials company’s stock worth $27,000 after buying an additional 326 shares during the last quarter. Hoese & Co LLP acquired a new stake in Newmont in the 3rd quarter valued at $27,000. Prospera Private Wealth LLC purchased a new position in Newmont during the third quarter worth about $28,000. Highline Wealth Partners LLC bought a new stake in Newmont during the third quarter worth about $32,000. Finally, Meeder Asset Management Inc. purchased a new stake in Newmont during the 2nd quarter valued at approximately $27,000. 68.85% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

NEM has been the topic of a number of research reports. Jefferies Financial Group upped their price target on Newmont from $54.00 to $63.00 and gave the stock a “buy” rating in a research note on Friday, October 4th. Argus raised shares of Newmont from a “hold” rating to a “buy” rating and set a $58.00 price target on the stock in a research report on Thursday, August 29th. UBS Group lowered Newmont from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $67.00 to $54.00 in a report on Wednesday, October 30th. Cibc World Mkts downgraded shares of Newmont from a “strong-buy” rating to a “hold” rating in a report on Monday, October 28th. Finally, CIBC lowered shares of Newmont from a “sector outperform” rating to a “neutral” rating in a research report on Monday, October 28th. Eight analysts have rated the stock with a hold rating, seven have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $54.31.

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.