Newmont (NYSE:NEM) Shares Gap Up – Should You Buy?

Shares of Newmont Co. (NYSE:NEM) gapped up prior to trading on Monday . The stock had previously closed at $55.08, but opened at $57.00. Newmont shares last traded at $56.06, with a volume of 2,194,609 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on NEM shares. UBS Group raised Newmont from a “neutral” rating to a “buy” rating and upped their target price for the stock from $50.00 to $60.00 in a research report on Friday, April 11th. Royal Bank of Canada raised their target price on shares of Newmont from $51.00 to $52.00 and gave the company a “sector perform” rating in a research note on Friday, April 4th. TD Securities dropped their target price on shares of Newmont from $46.00 to $45.00 and set a “hold” rating on the stock in a report on Wednesday, February 26th. National Bank Financial upgraded shares of Newmont to a “hold” rating in a report on Friday, March 21st. Finally, Raymond James lifted their price objective on Newmont from $54.00 to $63.00 and gave the stock an “outperform” rating in a research note on Friday, April 4th. One research analyst has rated the stock with a sell rating, seven have given a hold rating, eight have issued a buy rating and three have issued a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $55.02.

Newmont Trading Down 1.0 %

The company has a market cap of $61.49 billion, a price-to-earnings ratio of 18.62, a price-to-earnings-growth ratio of 0.41 and a beta of 0.54. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.96 and a quick ratio of 1.73. The business has a 50 day simple moving average of $47.14 and a 200 day simple moving average of $45.02.

Newmont (NYSE:NEM) last issued its quarterly earnings data on Thursday, February 20th. The basic materials company reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.11 by $0.29. Newmont had a net margin of 17.92% and a return on equity of 13.52%. The firm had revenue of $5.65 billion for the quarter, compared to analyst estimates of $5.32 billion. As a group, equities analysts forecast that Newmont Co. will post 3.45 EPS for the current year.

Newmont Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 27th. Shareholders of record on Tuesday, March 4th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.83%. The ex-dividend date of this dividend was Tuesday, March 4th. Newmont’s dividend payout ratio is 34.13%.

Insider Activity

In other Newmont news, COO Natascha Viljoen sold 9,000 shares of the company’s stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $42.89, for a total transaction of $386,010.00. Following the completion of the sale, the chief operating officer now owns 136,967 shares in the company, valued at approximately $5,874,514.63. The trade was a 6.17 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Peter Toth sold 3,000 shares of the firm’s stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $43.71, for a total value of $131,130.00. Following the completion of the transaction, the executive vice president now owns 86,526 shares in the company, valued at $3,782,051.46. This represents a 3.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 19,154 shares of company stock valued at $825,678. Company insiders own 0.05% of the company’s stock.

Hedge Funds Weigh In On Newmont

Institutional investors have recently modified their holdings of the stock. SOA Wealth Advisors LLC. grew its holdings in Newmont by 64.0% during the first quarter. SOA Wealth Advisors LLC. now owns 515 shares of the basic materials company’s stock valued at $25,000 after purchasing an additional 201 shares during the period. Nexus Investment Management ULC bought a new stake in shares of Newmont in the 1st quarter valued at $31,000. PSI Advisors LLC raised its stake in Newmont by 195.5% during the 1st quarter. PSI Advisors LLC now owns 795 shares of the basic materials company’s stock worth $38,000 after buying an additional 526 shares during the period. McIlrath & Eck LLC lifted its holdings in Newmont by 80.6% during the third quarter. McIlrath & Eck LLC now owns 809 shares of the basic materials company’s stock worth $43,000 after acquiring an additional 361 shares in the last quarter. Finally, HHM Wealth Advisors LLC grew its stake in Newmont by 66.0% in the fourth quarter. HHM Wealth Advisors LLC now owns 880 shares of the basic materials company’s stock valued at $33,000 after acquiring an additional 350 shares during the period. 68.85% of the stock is currently owned by institutional investors and hedge funds.

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.