Analysts Set Price Target for Newmont Corporation at $92.59

Newmont Corporation (NYSE:NEM) has received an average recommendation of “Moderate Buy” from twenty-one research firms covering its stock, according to Marketbeat.com. The consensus includes five analysts who have assigned a hold rating, twelve who have given a buy rating, and four who have indicated a strong buy. The average price target among these analysts is currently set at $93.22 for the next twelve months.

Several analysts have recently commented on Newmont’s stock performance. On October 23, 2023, Scotiabank upgraded Newmont from a “sector perform” rating to “sector outperform,” raising their price objective from $71.50 to $114.00. Similarly, Argus increased their price target from $75.00 to $94.00 in a research note dated November 21, 2023. Citigroup also raised its price objective from $74.00 to $104.00 and maintained a “buy” rating in a report published on October 15, 2023. National Bankshares reaffirmed an “outperform” rating on September 22, 2023, while The Goldman Sachs Group set a price target of $104.30 with a “buy” rating on October 12, 2023.

Recent Financial Performance

Newmont released its earnings results on October 23, 2023, reporting earnings per share (EPS) of $1.71 for the quarter. This figure surpassed the consensus estimate of $1.27 by $0.44. The company’s return on equity stood at 20.35%, with a net margin of 33.42%. Newmont’s revenue for the quarter reached $5.52 billion, exceeding the consensus estimate of $5.14 billion. This represents a significant increase of 20.0% compared to the same quarter last year, when the company reported an EPS of $0.81. Analysts anticipate that Newmont will achieve an EPS of $3.45 for the current year.

The company also announced a quarterly dividend, scheduled for payment on December 22, 2023. Shareholders of record as of November 26, 2023 will receive a dividend of $0.25, equating to an annualized dividend of $1.00 and a yield of 1.1%. The ex-dividend date is set for November 26, 2023, with a current payout ratio of 15.53%.

Insider Transactions and Institutional Holdings

In recent insider trading news, Director Bruce R. Brook sold 2,080 shares of Newmont on December 1, 2023, at an average price of $92.36, totaling $192,108.80. Following this transaction, Brook retains 32,709 shares valued at approximately $3,021,003.24, reflecting a 5.98% decrease in ownership. CEO Thomas Ronald Palmer also sold 5,000 shares on November 3, 2023, at an average price of $81.34, generating a total of $406,700.00. After this sale, Palmer holds 279,923 shares, valued at around $22,768,936.82, which represents a 1.75% ownership reduction.

In the past ninety days, insiders have sold a total of 11,240 shares worth $943,985. Currently, insiders hold 0.05% of Newmont’s stock.

Numerous hedge funds have also adjusted their stakes in the company. Norges Bank acquired a new stake in Newmont during the second quarter, valued at approximately $919.17 million. Invesco Ltd. increased its holdings in Newmont by 45.0% during the same period, owning 15,587,917 shares now worth about $908.15 million. Northern Trust Corp and Amundi both raised their positions in Newmont by 1.5% and 2.8% respectively in the first quarter. Dimensional Fund Advisors LP also expanded its holdings by 15.9% during this quarter.

Institutional investors currently own 68.85% of Newmont Corporation’s stock, reflecting significant confidence in the company’s ongoing operations in gold production and exploration, as well as its activities in copper, silver, zinc, and lead across various global locations including the United States, Canada, and Australia.