Newmont (NYSE:NEM) Trading 2% Higher – Still a Buy?
by Sarita Garza · The Markets DailyShares of Newmont Corporation (NYSE:NEM – Get Free Report) shot up 2% on Tuesday . The stock traded as high as $102.71 and last traded at $101.7970. 5,987,417 shares traded hands during mid-day trading, a decline of 48% from the average session volume of 11,431,961 shares. The stock had previously closed at $99.81.
More Newmont News
Here are the key news stories impacting Newmont this week:
- Positive Sentiment: Ahafo North has begun commercial production, adding ~5% of low‑cost gold volume to Newmont’s run‑rate; management cost cuts and potential additional synergies from majority control of Nevada Gold Mines should support margin expansion and free‑cash‑flow growth. Newmont: Average On The Cost Curve, But Above Average Upside Potential
- Positive Sentiment: Raymond James raised its price target to $111 from $99, signaling increased analyst confidence in upside versus prior estimates. That raises the near‑term valuation narrative for the stock. Newmont price target raised to $111 from $99 at Raymond James
- Positive Sentiment: Broader perspective: Newmont has rallied strongly this year (reported ~82% gain over six months in commentary), supported by higher gold prices, portfolio focus and strong cash flow — factors that make pullbacks buying opportunities for some investors. NEM Rallies 82% on Gold Price Upside and Strategic Strength
- Neutral Sentiment: Commodity stocks broadly bounced back after yesterday’s profit‑taking, a factor helping Newmont recover some losses; this is market‑driven rather than company‑specific. 2 Mining Giants Bouncing Back After Safe Haven Selloff
- Neutral Sentiment: Analysts remain mixed on NEM despite the price target lift — some see more upside, others warn of metal‑price sensitivity; expect divergent estimates to keep headline volatility. Analysts Have Mixed Views on Newmont (NEM)
- Negative Sentiment: Near‑term pressure came from a sharp slide in gold and especially silver after record highs; that metal pullback drove an intraday ~5% drop in Newmont shares as investors locked profits. Newmont Shares Drop 5% As Gold Slides From Record Highs
- Negative Sentiment: Coverage noted a sudden commodity profit‑taking episode that caused a steep one‑day selloff; volatility in silver (which fell double‑digits intraday after an all‑time high) amplified selling in precious‑metals names including Newmont. Why Newmont Corporation Stock Crashed Today
- Negative Sentiment: Marketwide risk‑off moves around metals prices (not specific to Newmont fundamentals) drove intraday weakness; if metal prices remain pressured, expect further headwinds to the stock. Stock Market Live December 29: S&P 500 (VOO) Falls to Start Second Holiday Week
Analyst Ratings Changes
A number of equities research analysts have recently commented on the stock. Zacks Research downgraded shares of Newmont from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 18th. Citigroup increased their price target on Newmont from $74.00 to $104.00 and gave the stock a “buy” rating in a research note on Wednesday, October 15th. UBS Group raised their price objective on Newmont from $105.50 to $125.00 and gave the stock a “buy” rating in a report on Monday, December 1st. TD Securities upped their target price on Newmont from $67.00 to $89.00 and gave the company a “hold” rating in a research note on Wednesday, October 8th. Finally, CIBC set a $112.00 price target on Newmont and gave the stock an “outperformer” rating in a research note on Friday, October 10th. Five investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, Newmont has a consensus rating of “Buy” and a consensus target price of $97.08.
Newmont Stock Up 2.0%
The firm’s 50 day moving average price is $90.48 and its two-hundred day moving average price is $77.97. The firm has a market capitalization of $111.09 billion, a PE ratio of 15.81, a P/E/G ratio of 0.74 and a beta of 0.41. The company has a quick ratio of 1.74, a current ratio of 2.04 and a debt-to-equity ratio of 0.17.
Newmont (NYSE:NEM – Get Free Report) last issued its quarterly earnings data on Thursday, October 23rd. The basic materials company reported $1.71 EPS for the quarter, topping analysts’ consensus estimates of $1.27 by $0.44. The firm had revenue of $5.52 billion for the quarter, compared to analyst estimates of $5.14 billion. Newmont had a net margin of 33.42% and a return on equity of 20.35%. The firm’s revenue was up 20.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.81 EPS. As a group, research analysts forecast that Newmont Corporation will post 3.45 EPS for the current fiscal year.
Newmont Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Monday, December 22nd. Investors of record on Wednesday, November 26th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Wednesday, November 26th. Newmont’s payout ratio is 15.53%.
Insider Buying and Selling at Newmont
In other Newmont news, Director Bruce R. Brook sold 2,080 shares of the stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $92.36, for a total transaction of $192,108.80. Following the transaction, the director owned 32,709 shares of the company’s stock, valued at $3,021,003.24. This trade represents a 5.98% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Thomas Ronald Palmer sold 5,000 shares of the business’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $81.34, for a total transaction of $406,700.00. Following the sale, the chief executive officer owned 279,923 shares of the company’s stock, valued at approximately $22,768,936.82. The trade was a 1.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 11,240 shares of company stock worth $943,985 over the last ninety days. 0.05% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Newmont
Institutional investors have recently modified their holdings of the business. Physician Wealth Advisors Inc. lifted its holdings in shares of Newmont by 327.8% in the third quarter. Physician Wealth Advisors Inc. now owns 308 shares of the basic materials company’s stock valued at $26,000 after buying an additional 236 shares during the period. Concord Wealth Partners lifted its holdings in shares of Newmont by 534.7% during the second quarter. Concord Wealth Partners now owns 457 shares of the basic materials company’s stock valued at $27,000 after purchasing an additional 385 shares during the last quarter. JPL Wealth Management LLC acquired a new position in shares of Newmont in the 3rd quarter valued at $27,000. Evermay Wealth Management LLC increased its stake in Newmont by 408.2% in the 2nd quarter. Evermay Wealth Management LLC now owns 498 shares of the basic materials company’s stock worth $29,000 after purchasing an additional 400 shares in the last quarter. Finally, Capital A Wealth Management LLC raised its holdings in Newmont by 1,648.3% during the 2nd quarter. Capital A Wealth Management LLC now owns 507 shares of the basic materials company’s stock worth $30,000 after buying an additional 478 shares during the period. Institutional investors own 68.85% of the company’s stock.
Newmont Company Profile
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.