Newmont (NYSE:NEM) Shares Gap Down Following Weak Earnings

Newmont Co. (NYSE:NEM) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $57.74, but opened at $55.74. Newmont shares last traded at $53.47, with a volume of 4,955,806 shares trading hands.

The basic materials company reported $0.81 earnings per share for the quarter, missing analysts’ consensus estimates 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 analyst estimates of $4.67 billion. During the same period in the previous year, the business posted $0.36 EPS. The firm’s revenue for the quarter was up 84.7% compared to the same quarter last year.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. BMO Capital Markets raised their price objective on shares of Newmont from $56.00 to $57.00 and gave the stock an “outperform” rating in a report on Thursday, July 25th. JPMorgan Chase & Co. cut shares of Newmont from an “overweight” rating to a “neutral” rating in a report on Monday, July 8th. CIBC raised shares of Newmont from a “neutral” rating to a “sector outperform” rating and lifted their target price for the company from $46.00 to $61.00 in a report on Wednesday, July 10th. Jefferies Financial Group lifted their target price on shares of Newmont from $54.00 to $63.00 and gave the company a “buy” rating in a report on Friday, October 4th. Finally, Scotiabank raised shares of Newmont from a “sector perform” rating to a “sector outperform” rating and lifted their target price for the company from $48.00 to $59.00 in a report on Monday, August 19th. Five research analysts have rated the stock with a hold rating, ten have issued a buy rating and three have issued a strong buy rating to the company’s stock. Based on data from MarketBeat, Newmont currently has an average rating of “Moderate Buy” and a consensus target price of $53.46.

Insider Activity at Newmont

In related news, CEO Thomas Ronald Palmer sold 20,000 shares of the business’s stock in a transaction dated Thursday, August 1st. The shares were sold at an average price of $49.51, for a total value of $990,200.00. Following the completion of the transaction, the chief executive officer now owns 311,469 shares of the company’s stock, valued at approximately $15,420,830.19. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, EVP Peter Toth sold 3,000 shares of the company’s stock in a transaction dated Tuesday, October 1st. The shares were sold at an average price of $53.81, for a total transaction of $161,430.00. Following the completion of the transaction, the executive vice president now owns 91,596 shares of the company’s stock, valued at $4,928,780.76. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Thomas Ronald Palmer sold 20,000 shares of the company’s stock in a transaction dated Thursday, August 1st. The shares were sold at an average price of $49.51, for a total transaction of $990,200.00. Following the transaction, the chief executive officer now directly owns 311,469 shares of the company’s stock, valued at approximately $15,420,830.19. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 66,000 shares of company stock valued at $3,434,640. 0.06% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Hoese & Co LLP acquired a new position in shares of Newmont during the 3rd quarter valued at about $27,000. Meeder Asset Management Inc. acquired a new stake in Newmont during the 2nd quarter worth approximately $27,000. LRI Investments LLC acquired 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 holdings in Newmont by 1,310.4% in the 1st quarter. Heritage Wealth Advisors now owns 945 shares of the basic materials company’s stock worth $34,000 after acquiring an additional 878 shares during the period. Institutional investors and hedge funds own 68.85% of the company’s stock.

Newmont Price Performance

The firm has a market cap of $61.14 billion, a price-to-earnings ratio of -20.22, a P/E/G ratio of 0.43 and a beta of 0.50. The business’s 50-day moving average price is $53.43 and its two-hundred day moving average price is $46.74. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.11 and a quick ratio of 1.85.

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.