Newmont (NYSE:NEM) Shares Gap Up on Earnings Beat

Newmont Co. (NYSE:NEM)’s share price gapped up prior to trading 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 trading hands.

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

Newmont Cuts Dividend

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

Analyst Ratings Changes

NEM has been the subject of a number of research reports. Citigroup dropped their target price on Newmont from $60.00 to $45.00 and set a “buy” rating for the company in a report on Thursday, April 4th. Royal Bank of Canada cut their price target on Newmont from $45.00 to $40.00 and set a “sector perform” rating for the company in a research note on Thursday, February 8th. Argus cut Newmont from a “buy” rating to a “hold” rating in a report on Monday, February 26th. StockNews.com lowered Newmont from a “hold” rating to a “sell” rating in a report on Monday, February 26th. Finally, Scotiabank cut their price objective on shares of Newmont from $50.00 to $43.50 and set a “sector perform” rating for the company in a research report on Wednesday, February 28th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $50.89.

Institutional Trading of Newmont

Several institutional investors and hedge funds have recently made changes to their positions in NEM. TFC Financial Management Inc. increased 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 worth $26,000 after buying an additional 499 shares during the period. Mizuho Securities Co. Ltd. bought a new stake in Newmont in the third quarter valued at approximately $26,000. Life Planning Partners Inc purchased a new stake in shares of Newmont during the fourth quarter valued at approximately $26,000. Manchester Capital Management LLC grew 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 worth $26,000 after purchasing an additional 397 shares during the last quarter. Finally, OFI Invest Asset Management purchased a new position in shares of Newmont in the third quarter worth $30,000. Hedge funds and other institutional investors own 68.85% of the company’s stock.

Newmont Stock Up 7.5 %

The company’s 50-day simple moving average is $35.14 and its two-hundred day simple moving average is $36.87. The firm has a market cap of $47.85 billion, a PE ratio of -17.44, a PEG ratio of 1.05 and a beta of 0.50. 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.