Newmont (NYSE:NEM) Trading Down 8% After Analyst Downgrade

Newmont Corporation (NYSE:NEM) traded down 8% on Tuesday after TD Securities lowered their price target on the stock from $120.00 to $118.00. TD Securities currently has a hold rating on the stock. Newmont traded as low as $115.88 and last traded at $118.45. 13,954,958 shares changed hands during trading, an increase of 38% from the average session volume of 10,140,296 shares. The stock had previously closed at $128.73.

NEM has been the subject of a number of other reports. Weiss Ratings reiterated a “buy (b-)” rating on shares of Newmont in a research report on Monday, December 29th. UBS Group dropped their target price on shares of Newmont from $160.00 to $150.00 and set a “buy” rating for the company in a report on Monday, February 23rd. Citigroup raised their price target on Newmont from $118.00 to $150.00 and gave the stock a “buy” rating in a research report on Tuesday. BNP Paribas Exane boosted their price objective on Newmont from $97.00 to $123.00 and gave the company a “neutral” rating in a report on Thursday, February 12th. Finally, Macquarie Infrastructure lifted their target price on Newmont from $115.00 to $126.00 and gave the company an “outperform” rating in a research report on Friday, February 6th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $133.68.

Key Stories Impacting Newmont

Here are the key news stories impacting Newmont this week:

• Positive Sentiment: Citigroup raised its price target sharply (from $118 to $150) and put a “buy” rating on NEM, highlighting upside for the stock and supporting demand from growth-oriented investors. Citigroup raise — Benzinga
• Positive Sentiment: Macro flight-to-safety and bullion strength remain a tailwind: coverage noting that geopolitical risk is boosting gold demand and that Newmont’s recent earnings, record free cash flow and higher dividend make it a preferred sector beneficiary. This supports longer-term flows into NEM. MarketBeat: Markets Seek Shelter as Gold Shines Brightest
• Positive Sentiment: Zacks highlights NEM as a strong momentum stock, which can attract technical and momentum-driven buyers while momentum remains intact. Zacks momentum piece
• Neutral Sentiment: Valuation is getting more attention after a large multi-quarter rally (one-year returns >200%); some coverage asks whether shares are priced for perfection — this raises debate but is not an immediate catalyst. Yahoo Finance: Is it too late?
• Negative Sentiment: Gold prices pulled back after a recent run-up, prompting profit-taking across miners and a sharp intraday slide in NEM; sector correlation to bullion makes Newmont sensitive to short-term metal moves. QuiverQuant: Newmont slides as gold pulls back
• Negative Sentiment: TD Securities trimmed its price target to $118 and moved to a “hold,” adding near-term caution for some investors and potentially weighing on sentiment. BayStreet.CA: TD Securities downgrade
• Negative Sentiment: Coverage and intraday analysis point to technical/flow-driven selling (including ex-/record-date dividend flows and reported insider sales cited in market writeups), which can amplify short-term volatility even with strong fundamentals. The Motley Fool: Why NEM dropped

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Apella Capital LLC lifted its position in shares of Newmont by 4.1% during the 4th quarter. Apella Capital LLC now owns 2,198 shares of the basic materials company’s stock worth $219,000 after purchasing an additional 86 shares during the last quarter. New Wave Wealth Advisors LLC lifted its holdings in Newmont by 1.3% during the 4th quarter. New Wave Wealth Advisors LLC now owns 6,849 shares of the basic materials company’s stock worth $684,000 after buying an additional 88 shares during the last quarter. Novem Group lifted its holdings in Newmont by 3.7% during the 4th quarter. Novem Group now owns 2,487 shares of the basic materials company’s stock worth $248,000 after buying an additional 88 shares during the last quarter. Norden Group LLC boosted its position in shares of Newmont by 0.7% during the 4th quarter. Norden Group LLC now owns 12,367 shares of the basic materials company’s stock worth $1,235,000 after acquiring an additional 90 shares in the last quarter. Finally, Parkside Financial Bank & Trust increased its holdings in shares of Newmont by 1.4% in the 4th quarter. Parkside Financial Bank & Trust now owns 7,153 shares of the basic materials company’s stock valued at $714,000 after acquiring an additional 96 shares during the last quarter. Hedge funds and other institutional investors own 68.85% of the company’s stock.

Newmont Stock Up 0.6%

The firm has a 50-day moving average price of $116.81 and a two-hundred day moving average price of $96.27. The firm has a market cap of $129.67 billion, a price-to-earnings ratio of 18.65, a price-to-earnings-growth ratio of 0.96 and a beta of 0.39. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.02 and a current ratio of 2.29.

Newmont (NYSE:NEM) last announced its quarterly earnings results on Thursday, February 19th. The basic materials company reported $2.52 EPS for the quarter, beating the consensus estimate of $1.81 by $0.71. Newmont had a net margin of 31.25% and a return on equity of 23.28%. The company had revenue of $6.82 billion for the quarter, compared to analyst estimates of $6.18 billion. During the same period in the prior year, the firm posted $1.40 earnings per share. The firm’s revenue was up 20.6% on a year-over-year basis. On average, sell-side analysts forecast that Newmont Corporation will post 3.45 earnings per share for the current year.

Newmont Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Tuesday, March 3rd will be paid a dividend of $0.26 per share. The ex-dividend date is Tuesday, March 3rd. This represents a $1.04 annualized dividend and a yield of 0.9%. This is an increase from Newmont’s previous quarterly dividend of $0.25. Newmont’s dividend payout ratio (DPR) is 16.28%.

About Newmont

Newmont Corporation (NYSE: NEM) is a leading global gold mining company engaged in the exploration, development, processing and reclamation of gold properties. The company’s core business centers on the production of gold, with additional byproduct metals produced from its operations. Newmont operates a portfolio of long‑lived mines and development projects, and its activities span the full mine life cycle from early-stage exploration through to mining, milling and closure.

Founded in 1921 and headquartered in Greenwood Village, Colorado, Newmont has grown through organic development and strategic acquisitions.