Newmont (NYSE:NEM) Shares Gap Up Following Strong Earnings

Newmont Co. (NYSE:NEM) gapped up prior to trading on Thursday following a stronger than expected earnings report. 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 changing hands.

The basic materials company reported $0.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.23. Newmont had a positive return on equity of 6.21% and a negative net margin of 20.95%. The business had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $3.66 billion. During the same quarter in the previous year, the company posted $0.40 EPS. The company’s revenue was up 50.2% compared to the same quarter last year.

Newmont Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Tuesday, March 5th were paid a dividend of $0.25 per share. The ex-dividend date was Monday, March 4th. This represents a $1.00 annualized dividend and a yield of 2.41%. Newmont’s payout ratio is currently -42.02%.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on NEM. BMO Capital Markets decreased their price target on Newmont from $57.00 to $56.00 and set an “outperform” rating for the company in a research note on Thursday, February 15th. TD Securities reduced their price target on shares of Newmont from $40.00 to $36.00 and set a “hold” rating on the stock in a research note on Friday, February 23rd. National Bank Financial reissued an “outperform overweight” rating on shares of Newmont in a research report on Monday, April 8th. Argus downgraded shares of 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 report on Thursday, April 4th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $50.89.

Institutional Investors Weigh In On Newmont

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. TFC Financial Management Inc. raised its stake in shares of Newmont by 242.2% during the 3rd quarter. TFC Financial Management Inc. now owns 705 shares of the basic materials company’s stock worth $26,000 after buying an additional 499 shares during the period. Mizuho Securities Co. Ltd. purchased a new position in Newmont during the third quarter valued at $26,000. Life Planning Partners Inc purchased a new stake in shares of Newmont during the fourth quarter worth about $26,000. Manchester Capital Management LLC raised its position in shares of Newmont by 171.9% during the 4th quarter. Manchester Capital Management LLC now owns 628 shares of the basic materials company’s stock worth $26,000 after purchasing an additional 397 shares during the last quarter. Finally, OFI Invest Asset Management acquired a new stake in Newmont in the 3rd quarter worth about $30,000. Institutional investors and hedge funds own 68.85% of the company’s stock.

Newmont Trading Up 7.5 %

The company has a market capitalization of $47.85 billion, a PE ratio of -17.44, a price-to-earnings-growth ratio of 1.05 and a beta of 0.50. The company has a 50 day simple moving average of $35.14 and a 200 day simple moving average of $36.87. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.98 and a current ratio of 1.25.

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.