Newmont Mining (NEM) Rating Lowered to Strong Sell at Zacks Investment Research

Zacks Investment Research cut shares of Newmont Mining (NYSE:NEM) from a hold rating to a strong sell rating in a research note published on Tuesday morning.

According to Zacks, “Newmont's fourth-quarter 2018 loss narrowed on a year-over-year basis. Adjusted earnings and sales beat their respective Zacks Consensus Estimate. Newmont faces headwinds from high production costs on year over year comparison basis. The company is also exposed to a highly volatile gold price environment. Lack of growth in the company’s gold reserves is another concern.  It has also underperformed the industry it belongs to over the past one year.”

Several other equities analysts have also issued reports on NEM. ValuEngine lowered Newmont Mining from a buy rating to a hold rating in a report on Saturday, December 1st. Deutsche Bank set a $36.00 target price on Newmont Mining and gave the company a hold rating in a report on Friday, December 7th. Raymond James set a $46.00 target price on Newmont Mining and gave the company an outperform rating in a report on Friday, December 7th. Royal Bank of Canada set a $41.00 target price on Newmont Mining and gave the company a sell rating in a report on Wednesday, December 12th. Finally, CIBC lowered Newmont Mining from an outperform rating to a neutral rating and reduced their target price for the company from $48.00 to $41.00 in a report on Tuesday, January 15th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and seven have given a buy rating to the company. Newmont Mining has an average rating of Hold and an average target price of $39.96.

NEM stock opened at $34.50 on Tuesday. The company has a market capitalization of $18.29 billion, a PE ratio of 25.56 and a beta of 0.01. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.95 and a quick ratio of 2.60. Newmont Mining has a 12-month low of $29.06 and a 12-month high of $41.98.

Newmont Mining (NYSE:NEM) last released its earnings results on Thursday, February 21st. The basic materials company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.17. The company had revenue of $2.05 billion during the quarter, compared to analyst estimates of $1.88 billion. Newmont Mining had a return on equity of 6.19% and a net margin of 4.70%. Newmont Mining’s quarterly revenue was up 5.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.39 earnings per share. Analysts anticipate that Newmont Mining will post 1.2 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 21st. Shareholders of record on Thursday, March 7th were issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.62%. The ex-dividend date of this dividend was Wednesday, March 6th. Newmont Mining’s dividend payout ratio (DPR) is 41.48%.

In other Newmont Mining news, COO Thomas Ronald Palmer sold 1,250 shares of the stock in a transaction on Friday, February 1st. The stock was sold at an average price of $34.13, for a total transaction of $42,662.50. Following the completion of the transaction, the chief operating officer now directly owns 126,610 shares of the company’s stock, valued at $4,321,199.30. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Gary J. Goldberg sold 4,000 shares of the stock in a transaction on Wednesday, January 2nd. The shares were sold at an average price of $34.43, for a total value of $137,720.00. Following the transaction, the chief executive officer now directly owns 137,797 shares of the company’s stock, valued at $4,744,350.71. The disclosure for this sale can be found here. Over the last three months, insiders have sold 44,350 shares of company stock valued at $1,576,609. 0.36% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in NEM. BlackRock Inc. grew its holdings in Newmont Mining by 9.2% during the fourth quarter. BlackRock Inc. now owns 79,175,130 shares of the basic materials company’s stock valued at $2,743,419,000 after purchasing an additional 6,689,349 shares during the period. Oregon Public Employees Retirement Fund boosted its holdings in shares of Newmont Mining by 3,384.4% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 4,808,727 shares of the basic materials company’s stock worth $139,000 after acquiring an additional 4,670,718 shares during the period. Norges Bank bought a new position in shares of Newmont Mining in the fourth quarter worth $131,587,000. FMR LLC boosted its holdings in shares of Newmont Mining by 31.9% in the third quarter. FMR LLC now owns 9,763,576 shares of the basic materials company’s stock worth $294,860,000 after acquiring an additional 2,359,109 shares during the period. Finally, First Eagle Investment Management LLC boosted its holdings in shares of Newmont Mining by 22.5% in the third quarter. First Eagle Investment Management LLC now owns 11,705,007 shares of the basic materials company’s stock worth $353,491,000 after acquiring an additional 2,153,531 shares during the period. 86.12% of the stock is owned by institutional investors and hedge funds.

Newmont Mining Company Profile

Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold, copper, and silver. Its operations and/or assets are located in the United States, Australia, Peru, Ghana, and Suriname. As of February 22, 2018, the company had proven and probable gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles.

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