As of May 23, 2023, Newmont Co. (NYSE:NEM) has received a “Moderate Buy” rating from the fifteen research firms currently covering the company, according to Bloomberg reports. Out of those fifteen firms, three have given a hold rating while eight others have assigned a buy rating. The average target price in the next twelve months among analysts who have issued reports within the past year is $60.53.
Newmont recently reported its quarterly earnings data on April 27th, announcing earnings per share (EPS) of $0.40 for the quarter. This exceeded the expected EPS by $0.07 and pushed up the company’s stock prices. Despite a negative net margin of 4.55%, Newmont also showed a positive return on equity of 6.05%. However, despite beating EPS estimates and an overall growing market, Newmont’s revenue went down this quarter by nearly 11% compared to the same period last year.
Nonetheless, several well-known hedge funds and institutional investors recently bought shares of NEM stock in great amounts: for example, Norges Bank purchased a new stake in Newmont valued at approximately $332,897,000 during Q4 of last year alone, emphasizing their confidence in NEM as an strong investment option within basic materials companies.
In addition to Norges Bank’s purchase of Newmont shares worth billions in recent years are acquisitions made by other investors such as Van ECK Associates Corp with now over 36 million stocks held with them; BlackRock Inc., which holds more than any other investor with just under 100 million shares (by far); Neuberger Berman Group LLC who now holds over nine million stocks after buying two million additional shares last quarter; and Caisse DE Depot ET Placement DU Quebec joining them together above all owning nearly four-and-a-half-million shares worth nearly four-hundred-million dollars combined just between them.
With all of these purchases to date and estimates that Newmont will report EPS of 2.29 for the current fiscal year, Newmont remains on a steady course of growth, making it a likely good choice for investors in the basic materials industry.
[bs_forecast_slider ticker=”NEM”]
Newmont Receives Buy Rating and Increased Price Targets from Analysts
Newmont, the world’s premier gold company and largest gold producer in North America, has received a “buy” rating from Canaccord Genuity Group. The firm has also increased their target price for Newmont’s shares from $53 to $55. Barclays has similarly raised its target price to $62 and given the company an “equal weight” rating. Meanwhile, TD Securities has upgraded the basic materials company’s stock from a “hold” rating to a “buy.” However, UBS Group had downgraded shares of Newmont from a “buy” rating to a “neutral” rating due to the decreased target price for the stock.
Analysis also shows that many hedge funds and institutional investors have recently bought and sold shares of NEM; BlackRock Inc. now owns almost 95 million shares of the company’s stock worth around $4.6 billion – an increase of 3.1% in Q1. The company’s market cap stands at $34.43 billion with P/E ratio of -65.65 and beta of 0.33. Shares opened at $43.33 on May 23rd.
The increased focus on buying Newmont’s stocks comes after it was revealed that National Bank Financial boosted its price target on Newmont’s stock from C$91 ($67) to C$94 ($69) earlier this month, while the corporate CEO Thomas Ronald Palmer sold off 11k shares (worth over $530k) last April.
Investors must be cautious as recent history shows that Newmont suffered significant losses almost exactly five years ago; then trading at around $68 per share, it experienced considerable downturns despite good quarterly performances due to mild disruptions in Africa and excess supply levels.
The announcement of a quarterly dividend payment will however be welcomed by shareholders; investors who are presently registered will get paid out $0.40 per share come June 15th regardless of whether shares are sold before or after the payment is made. The yield sits at a healthy 3.69%. Insiders have been letting go of their holdings over the past few weeks – notably CEO Palmer and COO Robert Atkinson who on March 1st sold off 11,000 and 3000 shares respectively, though this should not overly concern investors as insiders own just around 0.07% of company stock.
