Newmont (NYSE:NEM) Shares Gap Up Following Better-Than-Expected Earnings

Newmont Co. (NYSE:NEM) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. 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 trading hands.

The basic materials company reported $0.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.20. The business had revenue of $4.02 billion during the quarter, compared to the consensus estimate of $3.66 billion. Newmont had a negative net margin of 20.95% and a positive return on equity of 6.21%. The business’s revenue was up 50.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.40 EPS.

Newmont Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 27th. Stockholders of record on Tuesday, June 4th will be issued a dividend of $0.25 per share. The ex-dividend date is Tuesday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.34%. Newmont’s dividend payout ratio is currently -42.02%.

Analyst Ratings Changes

A number of equities analysts recently weighed in on NEM shares. BMO Capital Markets lowered their price objective on shares of Newmont from $57.00 to $56.00 and set an “outperform” rating for the company in a research report on Thursday, February 15th. Citigroup lowered their price objective on shares of Newmont from $60.00 to $45.00 and set a “buy” rating for the company in a research report on Thursday, April 4th. StockNews.com raised shares of Newmont from a “sell” rating to a “hold” rating in a research report on Friday. Scotiabank lowered their price objective on shares of Newmont from $50.00 to $43.50 and set a “sector perform” rating for the company in a research report on Wednesday, February 28th. Finally, Royal Bank of Canada lowered their price objective on shares of Newmont from $45.00 to $40.00 and set a “sector perform” rating for the company in a research report on Thursday, February 8th. Seven research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $51.75.

Institutional Investors Weigh In On Newmont

Several institutional investors have recently modified their holdings of the company. Sage Rhino Capital LLC lifted its position in shares of Newmont by 77.4% during the 1st quarter. Sage Rhino Capital LLC now owns 16,931 shares of the basic materials company’s stock worth $607,000 after purchasing an additional 7,386 shares during the last quarter. First Personal Financial Services raised its stake in Newmont by 3.0% during the 1st quarter. First Personal Financial Services now owns 46,774 shares of the basic materials company’s stock worth $1,676,000 after acquiring an additional 1,354 shares in the last quarter. Mesirow Financial Investment Management Inc. acquired a new stake in Newmont during the 1st quarter worth $261,000. KG&L Capital Management LLC raised its stake in Newmont by 47.7% during the 1st quarter. KG&L Capital Management LLC now owns 14,581 shares of the basic materials company’s stock worth $523,000 after acquiring an additional 4,710 shares in the last quarter. Finally, Meridian Wealth Management LLC raised its stake in Newmont by 29.5% during the 1st quarter. Meridian Wealth Management LLC now owns 11,773 shares of the basic materials company’s stock worth $422,000 after acquiring an additional 2,684 shares in the last quarter. 68.85% of the stock is owned by hedge funds and other institutional investors.

Newmont Price Performance

The company’s 50 day moving average is $35.54 and its 200 day moving average is $36.95. 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 has a market capitalization of $49.26 billion, a price-to-earnings ratio of -17.95, a price-to-earnings-growth ratio of 1.07 and a beta of 0.50.

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.