Newmont (NYSE:NEM) Trading Down 5.3% After Earnings Miss

Newmont Co. (NYSE:NEMGet Free Report) dropped 5.3% during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $31.63 and last traded at $31.67. Approximately 8,182,466 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 10,385,585 shares. The stock had previously closed at $33.43.

The basic materials company reported $0.50 EPS for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.01). The business had revenue of $3.96 billion for the quarter, compared to the consensus estimate of $3.44 billion. Newmont had a negative net margin of 20.95% and a positive return on equity of 6.21%. The company’s revenue for the quarter was up 23.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.44 EPS.

Newmont Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 28th. Shareholders of record on Tuesday, March 5th will be issued a dividend of $0.25 per share. The ex-dividend date is Monday, March 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 3.20%. Newmont’s dividend payout ratio (DPR) is -67.23%.

Analysts Set New Price Targets

A number of research analysts have weighed in on NEM shares. Raymond James reduced their target price on Newmont from $59.00 to $57.00 and set an “outperform” rating on the stock in a report on Friday, October 27th. Macquarie started coverage on Newmont in a report on Tuesday, November 21st. They set an “outperform” rating and a $45.00 target price on the stock. TD Securities cut their price target on Newmont from $40.00 to $36.00 and set a “hold” rating on the stock in a research note on Friday. Royal Bank of Canada cut their price target on 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, National Bank Financial restated an “outperform overweight” rating on shares of Newmont in a research note on Wednesday, January 3rd. Six equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $53.62.

Check Out Our Latest Stock Report on Newmont

Insider Buying and Selling

In related news, COO Robert D. Atkinson sold 5,500 shares of the firm’s stock in a transaction on Friday, December 1st. The stock was sold at an average price of $40.25, for a total value of $221,375.00. Following the transaction, the chief operating officer now directly owns 59,751 shares of the company’s stock, valued at approximately $2,404,977.75. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.07% of the stock is owned by insiders.

Institutional Investors Weigh In On Newmont

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in Newmont by 43.8% in the 4th quarter. Vanguard Group Inc. now owns 118,749,913 shares of the basic materials company’s stock worth $4,915,059,000 after buying an additional 36,170,985 shares in the last quarter. BlackRock Inc. grew its position in shares of Newmont by 4.6% during the second quarter. BlackRock Inc. now owns 99,433,731 shares of the basic materials company’s stock valued at $4,241,843,000 after purchasing an additional 4,409,771 shares in the last quarter. Van ECK Associates Corp grew its position in shares of Newmont by 57.2% during the fourth 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 in the last quarter. State Street Corp grew its position in Newmont by 0.3% in the second quarter. State Street Corp now owns 40,353,343 shares of the basic materials company’s stock worth $1,721,474,000 after acquiring an additional 121,393 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in Newmont by 44.9% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 24,639,109 shares of the basic materials company’s stock worth $1,019,813,000 after acquiring an additional 7,635,657 shares in the last quarter. Hedge funds and other institutional investors own 79.53% of the company’s stock.

Newmont Trading Up 1.3 %

The company has a market cap of $24.86 billion, a PE ratio of -13.14, a price-to-earnings-growth ratio of 2.28 and a beta of 0.52. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.25 and a quick ratio of 1.72. The company has a 50-day moving average of $36.59 and a 200 day moving average of $37.87.

Newmont Company Profile

(Get Free Report)

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, and Ghana. As of December 31, 2022, it had proven and probable gold reserves of 96.1 million ounces and land position of 61,500 square kilometers.

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