Investors Purchase High Volume of Call Options on Newmont (NYSE:NEM)

Newmont Corporation (NYSE:NEM) was the target of unusually large options trading activity on Tuesday. Stock investors acquired 71,740 call options on the company. This represents an increase of approximately 71% compared to the typical volume of 41,915 call options.

Analyst Ratings Changes

Several research analysts recently commented on the company. UBS Group increased their price objective on Newmont from $60.00 to $68.00 and gave the company a “buy” rating in a research note on Thursday, July 3rd. CIBC increased their target price on shares of Newmont from $60.00 to $74.00 and gave the company a “neutral” rating in a research report on Tuesday. The Goldman Sachs Group reissued a “neutral” rating and issued a $60.90 price target on shares of Newmont in a research note on Tuesday, July 8th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Newmont in a research note on Thursday, April 24th. Finally, Wall Street Zen upgraded shares of Newmont from a “hold” rating to a “buy” rating in a report on Friday, May 30th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, eight have given a buy rating and three have issued a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $62.49.

Insider Transactions at Newmont

In related news, Director Bruce R. Brook sold 2,077 shares of Newmont stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $58.75, for a total value of $122,023.75. Following the sale, the director owned 43,103 shares of the company’s stock, valued at approximately $2,532,301.25. This trade represents a 4.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Peter Toth sold 3,000 shares of the stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $54.09, for a total transaction of $162,270.00. Following the transaction, the executive vice president directly owned 77,526 shares in the company, valued at approximately $4,193,381.34. The trade was a 3.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 12,231 shares of company stock valued at $679,813. Insiders own 0.05% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. SOA Wealth Advisors LLC. boosted its position in shares of Newmont by 64.0% during the 1st quarter. SOA Wealth Advisors LLC. now owns 515 shares of the basic materials company’s stock worth $25,000 after purchasing an additional 201 shares during the period. Cloud Capital Management LLC acquired a new stake in shares of Newmont in the first quarter valued at $26,000. Colonial Trust Advisors raised its holdings in shares of Newmont by 315.4% in the 1st quarter. Colonial Trust Advisors now owns 565 shares of the basic materials company’s stock valued at $27,000 after buying an additional 429 shares during the period. Financial Management Professionals Inc. raised its holdings in shares of Newmont by 274.1% in the 2nd quarter. Financial Management Professionals Inc. now owns 606 shares of the basic materials company’s stock valued at $35,000 after buying an additional 444 shares during the period. Finally, Private Trust Co. NA lifted its stake in Newmont by 122.6% during the 1st quarter. Private Trust Co. NA now owns 630 shares of the basic materials company’s stock worth $30,000 after acquiring an additional 347 shares in the last quarter. Hedge funds and other institutional investors own 68.85% of the company’s stock.

Newmont Trading Down 5.6%

NEM opened at $57.39 on Wednesday. The stock has a market capitalization of $63.87 billion, a PE ratio of 12.87, a P/E/G ratio of 0.69 and a beta of 0.33. Newmont has a one year low of $36.86 and a one year high of $61.17. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.70 and a current ratio of 1.98. The business’s 50 day moving average price is $55.55 and its 200 day moving average price is $49.28.

Newmont (NYSE:NEM) last announced its quarterly earnings results on Wednesday, April 23rd. The basic materials company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.71 by $0.54. The business had revenue of $5.01 billion for the quarter, compared to analyst estimates of $4.82 billion. Newmont had a return on equity of 15.75% and a net margin of 25.77%. During the same quarter in the prior year, the company posted $0.55 EPS. As a group, equities research analysts expect that Newmont will post 3.45 EPS for the current year.

Newmont Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 20th. Shareholders of record on Tuesday, May 27th were given a $0.25 dividend. The ex-dividend date of this dividend was Tuesday, May 27th. This represents a $1.00 dividend on an annualized basis and a yield of 1.74%. Newmont’s payout ratio is currently 22.42%.

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.