Zacks Investment Research Downgrades Newmont Mining (NEM) to Hold

Newmont Mining (NYSE:NEM) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued on Friday.

According to Zacks, “Newmont’s shares have outperformed the industry it belongs to in the past six months. The company is making notable progress with its growth projects. We are also impressed with its  efforts to reduce debt and improve efficiency. Moreover, the acquisition of CC&V represents a significant opportunity. However, the company is exposed to a highly volatile gold price environment. It also faces headwinds from high production costs. The company's falling gold reserve base is another concern.”

Several other research firms have also recently issued reports on NEM. Deutsche Bank cut Newmont Mining from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $42.00 to $40.00 in a report on Tuesday. Scotiabank set a $48.00 target price on Newmont Mining and gave the stock a “buy” rating in a research report on Monday. TheStreet raised Newmont Mining from a “c+” rating to a “b” rating in a research report on Wednesday, October 11th. TD Securities set a $42.00 target price on Newmont Mining and gave the stock a “hold” rating in a research report on Thursday, October 19th. Finally, BMO Capital Markets reaffirmed a “buy” rating and issued a $43.00 target price on shares of Newmont Mining in a research report on Wednesday, December 20th. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Newmont Mining presently has an average rating of “Hold” and an average target price of $41.95.

Newmont Mining (NYSE:NEM) traded down $0.21 during mid-day trading on Friday, hitting $39.24. The stock had a trading volume of 4,669,400 shares, compared to its average volume of 4,612,591. Newmont Mining has a 1-year low of $31.42 and a 1-year high of $40.25. The company has a quick ratio of 3.58, a current ratio of 4.18 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $21,030.00, a PE ratio of 56.06 and a beta of 0.10.

Newmont Mining (NYSE:NEM) last posted its quarterly earnings data on Thursday, October 26th. The basic materials company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.02. Newmont Mining had a return on equity of 6.20% and a net margin of 1.18%. The business had revenue of $1.88 billion for the quarter, compared to analysts’ expectations of $1.86 billion. During the same quarter last year, the firm earned $0.38 earnings per share. The business’s revenue was up 4.9% on a year-over-year basis. sell-side analysts forecast that Newmont Mining will post 1.47 EPS for the current year.

In other Newmont Mining news, COO Thomas Ronald Palmer sold 1,250 shares of the firm’s stock in a transaction dated Wednesday, November 1st. The stock was sold at an average price of $36.44, for a total value of $45,550.00. Following the transaction, the chief operating officer now directly owns 86,862 shares of the company’s stock, valued at $3,165,251.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Gary J. Goldberg sold 1,000 shares of the firm’s stock in a transaction dated Friday, December 1st. The shares were sold at an average price of $36.98, for a total value of $36,980.00. Following the completion of the transaction, the insider now directly owns 334,730 shares in the company, valued at $12,378,315.40. The disclosure for this sale can be found here. Insiders sold 27,700 shares of company stock worth $1,020,676 over the last three months. 0.32% of the stock is currently owned by corporate insiders.

Large investors have recently added to or reduced their stakes in the business. Timber Hill LLC purchased a new position in Newmont Mining in the third quarter valued at about $260,000. Deane Retirement Strategies Inc. purchased a new position in Newmont Mining in the third quarter valued at about $1,513,000. Commonwealth Bank of Australia raised its position in Newmont Mining by 5.7% in the third quarter. Commonwealth Bank of Australia now owns 433,082 shares of the basic materials company’s stock valued at $16,239,000 after purchasing an additional 23,286 shares during the period. Saratoga Research & Investment Management purchased a new position in Newmont Mining in the third quarter valued at about $382,000. Finally, Gabelli Funds LLC grew its stake in shares of Newmont Mining by 3.7% during the third quarter. Gabelli Funds LLC now owns 2,731,471 shares of the basic materials company’s stock valued at $102,457,000 after acquiring an additional 97,300 shares in the last quarter. 81.86% of the stock is currently owned by institutional investors.

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Newmont Mining Company Profile

Newmont Mining Corporation is a mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Ghana and Suriname. The Company’s segments include North America, South America, Asia Pacific and Africa.

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