Newmont (NYSE:NEM) Shares Gap Up - Still a Buy?

Newmont Co. (NYSE:NEM - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $55.08, but opened at $57.00. Newmont shares last traded at $56.06, with a volume of 2,194,609 shares.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. National Bank Financial raised shares of Newmont to a "hold" rating in a research report on Friday, March 21st. UBS Group raised shares of Newmont from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $50.00 to $60.00 in a research report on Friday, April 11th. Royal Bank of Canada boosted their target price on Newmont from $51.00 to $52.00 and gave the company a "sector perform" rating in a research report on Friday, April 4th. The Goldman Sachs Group started coverage on Newmont in a research note on Monday, January 13th. They set a "buy" rating and a $47.20 price target on the stock. Finally, TD Securities dropped their price objective on Newmont from $46.00 to $45.00 and set a "hold" rating for the company in a research note on Wednesday, February 26th. One analyst has rated the stock with a sell rating, seven have issued a hold rating, eight have issued a buy rating and three have given a strong buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $55.02.

Newmont Stock Performance

The company has a market capitalization of $59.86 billion, a PE ratio of 18.12, a P/E/G ratio of 0.41 and a beta of 0.54. The stock's 50-day simple moving average is $47.58 and its 200 day simple moving average is $45.15. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.73 and a current ratio of 1.96.

Newmont (NYSE:NEM - Get Free Report) last posted its earnings results on Wednesday, April 23rd. The basic materials company reported $1.25 EPS for the quarter, beating the consensus estimate of $0.71 by $0.54. Newmont had a return on equity of 13.52% and a net margin of 17.92%. As a group, research analysts expect that Newmont Co. will post 3.45 earnings per share for the current fiscal year.

Newmont Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 27th. Investors of record on Tuesday, March 4th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.88%. The ex-dividend date was Tuesday, March 4th. Newmont's dividend payout ratio (DPR) is 34.13%.

Insiders Place Their Bets

In related news, EVP Peter Toth sold 3,000 shares of the firm's stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $42.89, for a total transaction of $128,670.00. Following the transaction, the executive vice president now owns 79,596 shares in the company, valued at $3,413,872.44. This trade represents a 3.63 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Natascha Viljoen sold 9,000 shares of Newmont stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $42.89, for a total value of $386,010.00. Following the transaction, the chief operating officer now directly owns 136,967 shares in the company, valued at approximately $5,874,514.63. This trade represents a 6.17 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 19,154 shares of company stock valued at $825,678. 0.05% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Newmont

A number of hedge funds have recently modified their holdings of NEM. SOA Wealth Advisors LLC. increased its stake in Newmont by 64.0% in the first quarter. SOA Wealth Advisors LLC. now owns 515 shares of the basic materials company's stock valued at $25,000 after purchasing an additional 201 shares during the period. Nexus Investment Management ULC purchased a new position in shares of Newmont during the first quarter worth about $31,000. Alpine Bank Wealth Management acquired a new position in Newmont in the 1st quarter valued at about $32,000. HHM Wealth Advisors LLC raised its stake in Newmont by 66.0% during the 4th quarter. HHM Wealth Advisors LLC now owns 880 shares of the basic materials company's stock valued at $33,000 after acquiring an additional 350 shares during the last quarter. Finally, Redwood Park Advisors LLC acquired a new stake in Newmont during the 4th quarter worth approximately $37,000. 68.85% of the stock is currently owned by hedge funds and other institutional investors.

Newmont Company Profile

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana.