Newmont (NYSE:NEM) Announces Strong Earnings Results

Newmont (NYSE:NEM) released its earnings results on Thursday, showcasing a solid performance in the last quarter. The basic materials company reported earnings per share (EPS) of $1.40, exceeding analysts' expectations of $1.11 by $0.29, according to Zacks. Despite achieving this impressive EPS, Newmont experienced a negative net margin of 7.03%, though it also reported a positive return on equity of 9.80%.

Stock Performance

Following the earnings announcement, shares of Newmont increased by 1.4%, rising by $0.69 to reach $48.10 during trading hours on Thursday. The trading volume was substantial, with 13,572,647 shares changing hands compared to the average volume of 9,208,329. Newmont has a fifty-day moving average of $41.33 and a 200-day moving average of $46.46. Currently, the company holds a debt-to-equity ratio of 0.30, a current ratio of 1.96, and a quick ratio of 1.73. The stock's performance over the past year has seen a low of $29.42 and a high of $58.72. With a market capitalization of $54.75 billion, Newmont's price-to-earnings ratio stands at -31.64, and its price-to-earnings-growth ratio is 0.40.

Analyst Ratings and Comments

Several analysts have provided insights into Newmont's stock. Recently, JPMorgan Chase & Co. upgraded their rating from "neutral" to "overweight". Additionally, Bernstein Bank raised their price target from $55.00 to $58.00. Conversely, UBS Group downgraded Newmont from a "buy" to a "neutral" rating and adjusted their price target down from $67.00 to $54.00. CIBC also cut their rating from "sector outperform" to "neutral". As a result, investment analysts' ratings are as follows: one analyst recommends selling, eight suggest holding, eight endorse buying, and two rate it as a strong buy. Overall, the average rating for Newmont shares is "Moderate Buy", with a target price averaging $53.37.

Insider Transactions

In addition to earnings, insider activities have occurred at Newmont. Director Harry M. Iv Conger purchased 9,498 shares at an average price of $42.15 per share, totaling about $400,340.70. Following this acquisition, he owns 14,498 shares now worth approximately $611,090.70. This transaction represented an increase in ownership of nearly 190%. Meanwhile, COO Natascha Viljoen sold 9,000 shares for a total of $360,000 at an average price of $40.00 per share. Following this sale, her holdings now consist of 145,967 shares valued at about $5,838,680, representing a decline of 5.81% in ownership. Over the past three months, insiders have sold 28,154 shares worth $1,166,843, with insiders currently owning just 0.06% of the company's stock.

Company Overview

Newmont Corporation is primarily engaged in gold production and exploration, and it also seeks opportunities in copper, silver, zinc, and lead. The company operates in multiple regions, including the United States, Canada, Mexico, and various countries across South America, Australia, Africa, and the Pacific.

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