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

On December 2, 2024, CLSA initiated coverage on Newmont Corporation (NYSE:NEM) by issuing an underperform rating for the company’s stock. This assessment comes from analysts noting challenges that Newmont may face in the near future.

In addition to CLSA's stance, various other financial institutions have weighed in on Newmont's stock performance. For instance, UBS Group downgraded Newmont from a "buy" rating to a "neutral" rating and reduced the price target from $67.00 to $54.00 in a research note dated October 30. Similarly, Cibc World Markets also adjusted their rating, shifting from a "strong-buy" to a "hold" on October 28.

Conversely, Veritas issued a "strong-buy" rating on Newmont on September 30, while Bernstein Bank raised their price target from $55.00 to $58.00 in a report released on November 11. Moreover, Jefferies Financial Group provided a positive outlook, increasing their price objective on Newmont shares from $54.00 to $63.00 on October 4 and maintaining a "buy" recommendation.

The collective sentiment from analysts shows a diverse range of opinions on Newmont's stock. Currently, one analyst has given the stock a sell rating, whereas eight have issued holds, seven assigned buy ratings, and two analysts have classified it as a strong buy. MarketBeat reports that the consensus rating for Newmont is "Moderate Buy" with an average price target set at $54.31.

Newmont's Stock Overview

Newmont's stock opened at $41.94 on December 2, reflecting the current market conditions. The company maintains a debt-to-equity ratio of 0.30, quick ratio of 1.73, and a current ratio of 1.96. Over the past year, Newmont’s stock has shown significant fluctuations, reaching a low of $29.42 and a high of $58.72. As of now, Newmont has a market cap of $47.75 billion, a price-to-earnings ratio of -27.59, and a PEG ratio of 0.36. The stock's fifty-day and 200-day moving averages sit at $49.09 and $47.49, respectively.

In its most recent earnings report released on October 23, Newmont reported earnings of $0.81 per share, falling short of the consensus estimate of $0.86. The company's revenue also came in slightly below expectations at $4.61 billion, compared to forecasts of $4.67 billion. Year-over-year, Newmont saw a significant revenue increase of 84.7%, with earnings per share improving from $0.36 in the same quarter last year. Analysts project that Newmont will achieve an EPS of 3.08 for the current fiscal year.

Dividend Announcements

Newmont has announced a quarterly dividend of $0.25 per share, scheduled for payment on December 23, 2024, to shareholders recorded as of November 27. This establishes an annual dividend of $1.00, translating to a yield of 2.38%. Currently, Newmont's dividend payout ratio stands at -65.79%, reflecting its investment reinvestment strategies, which may influence its market perception.

Insider Trading Activity

Recent insider transactions indicate notable activity, with EVP Peter Toth having sold 3,000 shares on October 1 at an average price of $53.81, totaling approximately $161,430. Following this transaction, Toth holds 91,596 shares of Newmont valued at about $4.93 million. CEO Thomas Ronald Palmer also sold 20,000 shares on the same day for $1.08 million. Insider ownership continues to be limited, with insiders collectively owning only about 0.06% of the company’s equity.

Institutional Investor Movements

Institutional investors have recently altered their stakes in Newmont. Waverton Investment Management Ltd boosted its holdings by 14% during the third quarter, acquiring additional shares worth approximately $28.38 million. Other notable adjustments include Red Cedar Investment Management's new position worth about $1.26 million during the same period. According to reports, around 68.85% of Newmont’s stock is currently held by institutional investors, emphasizing significant institutional interest.

Company Profile

Newmont Corporation is primarily involved in the production and exploration of gold, alongside other minerals such as copper, silver, zinc, and lead. The company operates in several countries, including the United States, Canada, Mexico, and various locations across South America, Australia, and Africa.

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