Newmont (NYSE:NEM) Shares Gap Up Following Better-Than-Expected Earnings

Newmont Co. (NYSE:NEM)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $38.60, but opened at $40.33. Newmont shares last traded at $41.51, with a volume of 8,001,837 shares traded.

The basic materials company reported $0.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.20. Newmont had a positive return on equity of 6.21% and a negative net margin of 20.95%. The firm had revenue of $4.02 billion for the quarter, compared to analysts’ expectations of $3.66 billion. During the same period in the previous year, the firm posted $0.40 earnings per share. The business’s revenue was up 50.2% compared to the same quarter last year.

Newmont Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 27th. Stockholders of record on Tuesday, June 4th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 2.34%. Newmont’s dividend payout ratio (DPR) is -42.02%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the company. TD Securities lifted their target price on Newmont from $43.00 to $48.00 and gave the stock a “hold” rating in a report on Friday. StockNews.com raised Newmont from a “sell” rating to a “hold” rating in a research note on Friday. Jefferies Financial Group assumed coverage on Newmont in a research note on Thursday, February 29th. They set a “buy” rating and a $38.00 price objective on the stock. Argus cut Newmont from a “buy” rating to a “hold” rating in a research note on Monday, February 26th. Finally, Citigroup reduced their price objective on Newmont from $60.00 to $45.00 and set a “buy” rating on the stock in a research note on Thursday, April 4th. Seven analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $51.75.

Institutional Trading of Newmont

A number of large investors have recently modified their holdings of NEM. TFC Financial Management Inc. boosted its holdings in shares of Newmont by 242.2% in the third quarter. TFC Financial Management Inc. now owns 705 shares of the basic materials company’s stock valued at $26,000 after purchasing an additional 499 shares during the period. Mizuho Securities Co. Ltd. purchased a new stake in shares of Newmont in the third quarter valued at approximately $26,000. Life Planning Partners Inc purchased a new stake in shares of Newmont in the fourth quarter valued at approximately $26,000. Manchester Capital Management LLC boosted its holdings in shares of Newmont by 171.9% in the fourth quarter. Manchester Capital Management LLC now owns 628 shares of the basic materials company’s stock valued at $26,000 after purchasing an additional 397 shares during the period. Finally, OFI Invest Asset Management bought a new position in Newmont in the third quarter worth approximately $30,000. Hedge funds and other institutional investors own 68.85% of the company’s stock.

Newmont Stock Down 1.6 %

The company has a market cap of $49.26 billion, a P/E ratio of -17.95, a P/E/G ratio of 1.07 and a beta of 0.50. The company has a quick ratio of 0.98, a current ratio of 1.25 and a debt-to-equity ratio of 0.25. The business’s 50 day moving average is $35.54 and its 200 day moving average is $36.95.

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.