Newmont Corporation (NYSE: NEM): The Best-Of-Breed For Investing?


Van Eck Associates Corp. recently announced the acquisition of new stake in Newmont Corporation (NYSE:NEM). The institutional investor has increased its shareholding in the Basic Materials company by 4.20% to 39.36 million shares with purchase of 1.59 million shares. This fresh investment now brings its stake to 4.90% valued currently at $2.72 billion. In addition, BlackRock Investment Management (.. raised its holdings by 0.92 million to 28.66 million shares. And Fidelity Management & Research Co.. has lifted its position by 12.33% or 2.21 million shares – to 20.11 million shares.

With over 6.14 million Newmont Corporation (NEM) shares trading Tuesday and a closing price of $67.02 on the day, the dollar volume was approximately $411.64 million. The shares have shown a positive weekly performance of 3.33% and its price on 09/01/20 lost nearly -0.39%. Currently, there are 803.00M common shares owned by the public and among those 800.80M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for NEM have a consensus price objective of $77.50. The analysts have set the share’s price value over the next 12 months at a high of $90.00 and a low of $61.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Newmont Corporation stock is 2.00 for the next 12 months. The average price target is 12.56% above its last price level and an upside to the estimated low will see the stock lose -9.87% over that period. But an upside of 25.53% will see the stock hit the forecast high price target while mean target price for the stock is $78.50.

Insiders at the company have transacted a total of 138 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 29 of these insider trades were purchases, accounting for 375,189 shares. Insider sales of the common stock occurred on 109 occasions, with total insider shares sold totaling 501,709 shares.

The top 3 mutual fund holders in Newmont Corporation are VanEck Vectors – Gold Miners ETF, Vanguard Total Stock Market Index, and Vanguard 500 Index Fund. VanEck Vectors – Gold Miners ETF owns 34.68 million shares of the company’s stock, all valued at over $2.4 billion. The company bought an additional 0.11 million shares recently to bring their total holdings to about 4.32% of the shares outstanding. Vanguard Total Stock Market Index sold 52095.0 shares to see its total holdings shrink to 22.82 million shares valued at over $1.58 billion and representing 2.84% of the shares outstanding. Vanguard 500 Index Fund sold -0.1 million shares to bring its total holdings to over 16.55 million shares at a value of $1.15 billion. Vanguard 500 Index Fund now owns shares totaling to 2.06% of the shares outstanding.

Shares of Newmont Corporation (NYSE: NEM) opened at $68.49, up $1.21 from a prior closing price of $67.28. However, the script later closed the day at $67.02, down -0.39%. The company’s stock has a 5-day price change of 3.33% and 19.64% over the past three months. NEM shares are trading 54.25% year to date (YTD), with the 12-month market performance up to 65.93% higher. It has a 12-month low price of $33.00 and touched a high of $72.22 over the same period. Currently, 6.14 million shares have been traded, compared to an average intraday trading volume of 8.50 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.73%, 3.99%, and 26.29% respectively.

Institutional ownership of Newmont Corporation (NYSE: NEM) shares accounts for 83.80% of the company’s 803.00M shares outstanding. Mutual fund holders own 31.28%, while other institutional holders and individual stakeholders account for 52.54% and 0.61% respectively.

It has a market capitalization of $52.25B and a beta (3y monthly) value of 0.35. The stock’s trailing 12-month PE ratio is 13.65, while the earnings-per-share (ttm) stands at $4.91. The company has a PEG of 0.33 and a Quick Ratio of 2.40 with the debt-to-equity ratio at 0.30. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.36% over the week and 3.26% over the month.

Analysts forecast that Newmont Corporation (NEM) will achieve an EPS of $0.77 for the current quarter, $0.89 for the next quarter and $3.91 for 2021. The lowest estimate earnings-per-share for the quarter is $0.56 while analysts give the company a high EPS estimate of $0.98. Comparatively, EPS for the current quarter was $0.36 a year ago. Earnings per share for the fiscal year are expected to increase by 800.20%, and 65.38% over the next financial year. EPS should grow at an annualized rate of 40.86% over the next five years, compared to 24.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate Newmont Corporation (NEM) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 5 of the 20 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the NEM, a number of firms have released research notes about the stock. Standpoint Research stated their Hold rating for the stock in a research note on May 18, 2020, with the firm’s price target at. Barclays coverage for the Newmont Corporation (NEM) stock in a research note released on April 16, 2020 offered a Equal Weight rating with a price target of $58. JP Morgan was of a view on April 09, 2020 that the stock is Overweight, while CIBC gave the stock Sector Outperform rating on February 24, 2020, issuing a price target of. UBS on their part issued Neutral rating on February 06, 2020.


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