Newmont (NYSE:NEM) Shares Down 8% on Analyst Downgrade

Newmont Corporation (NYSE:NEM) shares dropped 8% during mid-day trading on Tuesday after TD Securities lowered their price target on the stock from $120.00 to $118.00. TD Securities currently has a hold rating on the stock. Newmont traded as low as $115.88 and last traded at $118.45. Approximately 13,954,958 shares were traded during trading, an increase of 38% from the average daily volume of 10,140,296 shares. The stock had previously closed at $128.73.

A number of other analysts have also recently weighed in on the company. Argus upped their price target on Newmont from $75.00 to $94.00 in a research report on Friday, November 21st. BMO Capital Markets reduced their target price on shares of Newmont from $145.00 to $140.00 and set an “outperform” rating on the stock in a research note on Friday, February 20th. Scotiabank increased their target price on shares of Newmont from $114.00 to $152.00 and gave the stock an “outperform” rating in a research report on Monday, January 26th. UBS Group cut their price target on shares of Newmont from $160.00 to $150.00 and set a “buy” rating for the company in a report on Monday, February 23rd. Finally, Zacks Research lowered shares of Newmont from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, November 18th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $133.68.

Key Headlines Impacting Newmont

Here are the key news stories impacting Newmont this week:

• Positive Sentiment: Strong fundamentals: Newmont reported a large Q4 beat, record free cash flow and raised shareholder returns (dividend increase), which underpins longer-term investor support. Markets Seek Shelter as Gold Shines Brightest
• Positive Sentiment: Bullish analyst action: Citigroup bumped its price target to $150 and kept a “buy” stance, adding a material upside scenario for the stock. Citigroup Raises PT to $150
• Positive Sentiment: Upgrade tailwind: Sanford C. Bernstein recently upgraded Newmont, supporting investor demand from momentum and institutional buyers. Newmont Upgraded at Sanford C. Bernstein
• Positive Sentiment: Options activity: Unusually heavy call buying suggests some traders were positioned for further upside ahead of today’s moves (can amplify volatility). (No article link)
• Neutral Sentiment: Small analyst trim: TD Securities trimmed its target slightly to $118 with a “hold” rating — a modest change that by itself is unlikely to cause a large move but adds to mixed signals. BayStreet.CA
• Negative Sentiment: Gold pullback / sector profit-taking: Reports point to a retreat in bullion that triggered broad selling across gold miners and forced short-term profit-taking after a recent rally — the most direct driver of today’s decline. Newmont slides as gold pulls back
• Negative Sentiment: Headline coverage of the drop: Market commentary (including The Motley Fool) highlights the sharp, short-term selling and frames the move as tied to shifting risk sentiment rather than company deterioration. Why Newmont Corporation Stock Just Dropped
• Negative Sentiment: Conflicting analyst views & institutional flows: Alongside upgrades, some firms (e.g., CIBC) have cut targets sharply and Quiver’s data shows sizeable institutional rebalancing and insider selling that can exacerbate downside on a weak metals tape. CIBC Cuts Newmont Price Target

Institutional Trading of Newmont

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in shares of Newmont by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 134,107,293 shares of the basic materials company’s stock valued at $13,390,613,000 after acquiring an additional 637,996 shares in the last quarter. State Street Corp grew its stake in Newmont by 1.0% in the fourth quarter. State Street Corp now owns 49,959,850 shares of the basic materials company’s stock valued at $4,988,491,000 after purchasing an additional 480,223 shares in the last quarter. Van ECK Associates Corp increased its position in shares of Newmont by 23.4% during the 4th quarter. Van ECK Associates Corp now owns 29,780,063 shares of the basic materials company’s stock worth $2,973,539,000 after purchasing an additional 5,643,496 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Newmont by 3.6% during the 4th quarter. Geode Capital Management LLC now owns 27,011,084 shares of the basic materials company’s stock worth $2,738,756,000 after purchasing an additional 946,824 shares in the last quarter. Finally, Norges Bank acquired a new stake in shares of Newmont in the 2nd quarter valued at approximately $919,170,000. 68.85% of the stock is owned by institutional investors.

Newmont Stock Down 8.0%

The firm has a market capitalization of $128.86 billion, a P/E ratio of 18.54, a PEG ratio of 1.08 and a beta of 0.39. The firm’s 50 day moving average is $116.52 and its two-hundred day moving average is $96.11. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.29 and a quick ratio of 2.02.

Newmont (NYSE:NEM) last announced its quarterly earnings results on Thursday, February 19th. The basic materials company reported $2.52 EPS for the quarter, beating analysts’ consensus estimates of $1.81 by $0.71. The firm had revenue of $6.82 billion during the quarter, compared to analysts’ expectations of $6.18 billion. Newmont had a net margin of 31.25% and a return on equity of 23.28%. The company’s revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter last year, the company posted $1.40 earnings per share. Research analysts predict that Newmont Corporation will post 3.45 EPS for the current year.

Newmont Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Tuesday, March 3rd will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Tuesday, March 3rd. This is a boost from Newmont’s previous quarterly dividend of $0.25. Newmont’s payout ratio is presently 15.65%.

Newmont Company Profile

Newmont Corporation (NYSE: NEM) is a leading global gold mining company engaged in the exploration, development, processing and reclamation of gold properties. The company’s core business centers on the production of gold, with additional byproduct metals produced from its operations. Newmont operates a portfolio of long‑lived mines and development projects, and its activities span the full mine life cycle from early-stage exploration through to mining, milling and closure.

Founded in 1921 and headquartered in Greenwood Village, Colorado, Newmont has grown through organic development and strategic acquisitions.