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

Newmont Co. (NYSE:NEM) gapped up before the market opened 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 EPS for the quarter, topping 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 business 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 company’s quarterly revenue was up 50.2% on a year-over-year basis.

Newmont Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Shareholders of record on Tuesday, March 5th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Monday, March 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.30%. Newmont’s payout ratio is currently -42.02%.

Analyst Upgrades and Downgrades

Several analysts recently commented on NEM shares. Scotiabank dropped their price target on Newmont from $50.00 to $43.50 and set a “sector perform” rating for the company in a research report on Wednesday, February 28th. Citigroup decreased their price target on shares of Newmont from $60.00 to $45.00 and set a “buy” rating on the stock in a research note on Thursday, April 4th. National Bank Financial reaffirmed an “outperform overweight” rating on shares of Newmont in a research note on Monday, April 8th. Royal Bank of Canada decreased their target price on shares of Newmont from $45.00 to $40.00 and set a “sector perform” rating on the stock in a research note on Thursday, February 8th. Finally, StockNews.com lowered Newmont from a “hold” rating to a “sell” rating in a research report on Monday, February 26th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat.com, Newmont currently has an average rating of “Hold” and an average target price of $50.89.

Institutional Trading of Newmont

Hedge funds and other institutional investors have recently modified their holdings of the business. AE Wealth Management LLC lifted its holdings in shares of Newmont by 2.5% in the 3rd quarter. AE Wealth Management LLC now owns 30,989 shares of the basic materials company’s stock worth $1,145,000 after acquiring an additional 767 shares during the last quarter. Meridian Wealth Management LLC boosted its position in shares of Newmont by 81.8% during the third quarter. Meridian Wealth Management LLC now owns 18,084 shares of the basic materials company’s stock worth $668,000 after buying an additional 8,139 shares during the period. Czech National Bank grew its stake in shares of Newmont by 47.6% in the third quarter. Czech National Bank now owns 138,902 shares of the basic materials company’s stock valued at $5,132,000 after buying an additional 44,824 shares in the last quarter. Asset Management One Co. Ltd. raised its holdings in shares of Newmont by 1.6% in the 3rd quarter. Asset Management One Co. Ltd. now owns 470,097 shares of the basic materials company’s stock valued at $17,370,000 after buying an additional 7,512 shares during the period. Finally, Handelsbanken Fonder AB lifted its stake in Newmont by 4.1% during the 3rd quarter. Handelsbanken Fonder AB now owns 215,555 shares of the basic materials company’s stock worth $7,965,000 after acquiring an additional 8,444 shares in the last quarter. 68.85% of the stock is owned by institutional investors and hedge funds.

Newmont Trading Up 12.5 %

The stock has a market cap of $50.04 billion, a price-to-earnings ratio of -18.24, a price-to-earnings-growth 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. The company has a 50 day moving average of $35.35 and a 200-day moving average of $36.92.

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.