Traders Buy Large Volume of Call Options on Newmont (NYSE:NEM)

Newmont Co. (NYSE:NEM) was the target of some unusual options trading on Thursday. Stock investors purchased 58,700 call options on the stock. This is an increase of approximately 17% compared to the average volume of 50,342 call options.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on NEM shares. StockNews.com lowered Newmont from a “hold” rating to a “sell” rating in a research note on Monday, February 26th. Jefferies Financial Group began coverage on Newmont in a research report on Thursday, February 29th. They set a “buy” rating and a $38.00 price target on the stock. Scotiabank decreased their price objective on Newmont from $50.00 to $43.50 and set a “sector perform” rating for the company in a report on Wednesday, February 28th. BMO Capital Markets decreased their price objective on Newmont from $57.00 to $56.00 and set an “outperform” rating for the company in a report on Thursday, February 15th. Finally, Citigroup decreased their price objective on Newmont from $60.00 to $45.00 and set a “buy” rating for the company in a report on Thursday, April 4th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and seven have issued a buy rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $50.89.

Newmont Stock Performance

Shares of NYSE NEM traded up $4.50 during midday trading on Thursday, hitting $43.10. 20,546,607 shares of the company’s stock were exchanged, compared to its average volume of 13,577,096. The firm has a market capitalization of $49.69 billion, a PE ratio of -17.44, a price-to-earnings-growth ratio of 1.05 and a beta of 0.50. The company’s 50 day moving average price is $35.14 and its 200 day moving average price is $36.87. The company has a quick ratio of 0.98, a current ratio of 1.25 and a debt-to-equity ratio of 0.25. Newmont has a 12 month low of $29.42 and a 12 month high of $50.18.

Newmont (NYSE:NEM) last released its quarterly earnings results on Thursday, April 25th. The basic materials company reported $0.55 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.23. The business had revenue of $4.02 billion during the quarter, compared to analysts’ expectations of $3.66 billion. Newmont had a positive return on equity of 6.21% and a negative net margin of 20.95%. The firm’s revenue for the quarter was up 50.2% compared to the same quarter last year. During the same period last year, the firm posted $0.40 EPS. As a group, analysts predict that Newmont will post 1.97 earnings per share for the current fiscal 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 issued a $0.25 dividend. The ex-dividend date of this dividend was Monday, March 4th. This represents a $1.00 annualized dividend and a yield of 2.32%. Newmont’s dividend payout ratio is presently -42.02%.

Hedge Funds Weigh In On Newmont

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NEM. Vanguard Group Inc. raised its holdings in Newmont by 43.8% in the 4th quarter. Vanguard Group Inc. now owns 118,749,923 shares of the basic materials company’s stock valued at $4,915,059,000 after acquiring an additional 36,170,995 shares in the last quarter. Van ECK Associates Corp increased its stake in shares of Newmont by 57.2% in the 4th quarter. Van ECK Associates Corp now owns 51,290,469 shares of the basic materials company’s stock valued at $2,122,913,000 after purchasing an additional 18,664,614 shares during the last quarter. Norges Bank bought a new position in shares of Newmont in the 4th quarter valued at $604,516,000. Charles Schwab Investment Management Inc. increased its stake in shares of Newmont by 44.9% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 24,639,109 shares of the basic materials company’s stock valued at $1,019,813,000 after purchasing an additional 7,635,657 shares during the last quarter. Finally, First Eagle Investment Management LLC increased its stake in shares of Newmont by 29.9% in the 4th quarter. First Eagle Investment Management LLC now owns 23,756,158 shares of the basic materials company’s stock valued at $983,267,000 after purchasing an additional 5,475,155 shares during the last quarter. 68.85% of the stock is owned by institutional investors and hedge funds.

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.