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

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.

The basic materials company reported $0.55 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.23. The firm had revenue of $4.02 billion for the quarter, compared to the consensus estimate 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 in the prior year, the business posted $0.40 earnings per share.

Newmont Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Investors of record on Tuesday, March 5th were given a $0.25 dividend. The ex-dividend date of this dividend was Monday, March 4th. This represents a $1.00 annualized dividend and a dividend yield of 2.30%. Newmont’s dividend payout ratio is presently -42.02%.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on NEM shares. StockNews.com downgraded shares of Newmont from a “hold” rating to a “sell” rating in a research note on Monday, February 26th. Scotiabank reduced their target price on Newmont from $50.00 to $43.50 and set a “sector perform” rating on the stock in a report on Wednesday, February 28th. National Bank Financial reissued an “outperform overweight” rating on shares of Newmont in a research report on Monday, April 8th. Argus downgraded Newmont from a “buy” rating to a “hold” rating in a report on Monday, February 26th. Finally, BMO Capital Markets decreased their target price on Newmont from $57.00 to $56.00 and set an “outperform” rating for the company in a report on Thursday, February 15th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $50.89.

Institutional Investors Weigh In On Newmont

Large investors have recently added to or reduced their stakes in the company. Life Planning Partners Inc acquired a new stake in Newmont during the 4th quarter valued at approximately $26,000. Manchester Capital Management LLC boosted its stake 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 valued at $26,000 after buying an additional 397 shares during the last quarter. TFC Financial Management Inc. grew its position in shares of Newmont by 242.2% during 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 in the last quarter. Mizuho Securities Co. Ltd. bought a new stake in shares of Newmont in the third quarter worth $26,000. Finally, CVA Family Office LLC acquired a new stake in Newmont in the fourth quarter valued at $34,000. 68.85% of the stock is owned by institutional investors and hedge funds.

Newmont Stock Up 12.5 %

The stock has a market capitalization of $50.04 billion, a P/E ratio of -18.24, a P/E/G ratio of 1.05 and a beta of 0.50. The company has a current ratio of 1.25, a quick ratio of 0.98 and a debt-to-equity ratio of 0.25. The stock’s 50 day simple moving average is $35.35 and its 200 day simple moving average is $36.92.

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.