Newmont (NYSE:NEM) Receives Underperform Rating from CLSA Analysts

On December 2nd, 2024, CLSA initiated coverage on Newmont (NYSE:NEM), a major player in the basic materials sector, with an underperform rating for its stock. This rating highlights concerns about the company's future performance.

Other analysts have also commented on Newmont's stock recently. For instance, UBS Group downgraded Newmont from a "buy" to a "neutral" rating while lowering their price target from $67.00 to $54.00 in a note released on October 30th. In contrast, Veritas upgraded Newmont to a "strong-buy" rating as of September 30th. Meanwhile, Bernstein Bank adjusted its target price for Newmont shares from $55.00 to $58.00 on November 11th. On the other hand, Cibc World Markets changed their stance, reducing Newmont from a "strong-buy" to a "hold" rating on October 28th, and Jefferies Financial Group increased their price target from $54.00 to $63.00, maintaining a "buy" rating on October 4th. Overall, one analyst has issued a sell rating, eight have rated it as hold, seven labeled it as buy, and two gave it a strong buy rating, leading to an average rating of "Moderate Buy" with a consensus price target of $54.31.

Newmont's Stock Performance Overview

On the trading floor, NYSE:NEM opened at $41.94. The company exhibits a debt-to-equity ratio of 0.30, with a quick ratio of 1.73 and a current ratio of 1.96. Newmont's stock has seen a low of $29.42 and a high of $58.72 over the past year. As of now, it boasts a market capitalization of $47.75 billion, with a price-to-earnings ratio of -27.59 and a PEG ratio of 0.36. Notably, Newmont's beta stands at 0.51, suggesting lower volatility relative to the market. Its fifty-day moving average price is $49.09 and the 200-day moving average price is $47.49.

Newmont last released its quarterly earnings on October 23rd, reporting earnings per share (EPS) of $0.81, which was below market expectations of $0.86 by $0.05. The firm's quarterly revenue reached $4.61 billion, slightly under the anticipated $4.67 billion. In the report, Newmont noted a positive return on equity of 9.80%, accompanied by a negative net margin of 7.03%. Year-over-year, the company's revenue for the quarter rose by 84.7%, compared to the same quarter last year when it reported an EPS of $0.36. Analysts forecast that Newmont will record an EPS of 3.08 for the current fiscal year.

Dividend Announcement from Newmont

In related news, Newmont has announced a quarterly dividend of $0.25, which is set to be paid to shareholders on December 23rd. The ex-dividend date was on November 27th. This dividend reflects an annualized payout of $1.00, translating to a yield of 2.38%. Currently, Newmont's dividend payout ratio (DPR) is at -65.79%.

Insider Transactions at Newmont

In other developments, Newmont's EVP Peter Toth sold 3,000 shares on October 1st at an average price of $53.81, totaling $161,430. Following this sale, Toth owns 91,596 shares valued at approximately $4.93 million, indicating a 3.17% decrease in ownership. Furthermore, CEO Thomas Ronald Palmer sold 20,000 shares on the same day, totaling $1,076,200, which reduced his ownership by 6.86%. In total, insiders have sold 46,000 shares of company stock valued at $2.44 million over the past three months, with insiders holding only 0.06% of the company's stock.

Institutional Investors' Involvement with Newmont

Recently, several hedge funds and institutional investors have adjusted their stakes in Newmont. Waverton Investment Management Ltd increased its holdings by 14.0% in the third quarter, owning 531,041 shares valued at $28.38 million after acquiring an additional 65,075 shares. Red Cedar Investment Management bought a new stake worth about $1.26 million during the same quarter. Meanwhile, Bridgewater Associates LP significantly raised their stake by 1,947.6%, owning 711,591 shares valued at $38.03 million after purchasing an extra 676,838 shares. Other investors include Herr Investment Group, which bought a new stake valued at approximately $419,000, and Truist Financial Corp, which grew its stake by 8.1% to 150,352 shares worth $6.3 million. Currently, 68.85% of Newmont's stock is owned by institutional investors.

About Newmont Corporation

Newmont Corporation is engaged in the production and exploration of gold, along with copper, silver, zinc, and lead. The company has operations and assets spread across several countries, including the United States, Canada, Mexico, Peru, Ghana, and various others around the world.

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