Newmont Corporation (NEM) looking to reclaim success with recent performance

Newmont Corporation (NYSE: NEM) stock fell -0.22% on Friday to $44.84 against a previous-day closing price of $44.94. With 14.3 million shares changed hands, the volume of the stock remained heavier than its average volume of 7.77 million shares. During the session, the Gold company that operates in wider Basic Materials sector, reached to the highest price of $46.65 whereas the lowest price it dropped to was $44.80. The 52-week range on NEM shows that it touched its highest point at $86.37 and its lowest point at $44.00 during that stretch. It currently has a 1-year price target of $66.01. With its current market cap of 35.85 billion, NEM has annualized dividend of $2.20 while the current yield stands at 4.91%. Beta for the stock currently stands at 0.30.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NEM was down-trending over the past week, with a drop of -2.82%, but this was down by -26.70% over a month. Three-month performance dropped to -37.99% while six-month performance fell -26.70%. The stock lost -27.65% in the past year, while it has lost -27.70% so far this year. A look at the trailing 12-month EPS for NEM yields 0.93 with Next year EPS estimates of 2.54. For the next quarter, that number is 0.73. This implies an EPS growth rate of -58.10% for this year and -0.24% for next year.

Float and Shares Shorts:

At present, 794.00 million NEM shares are outstanding with a float of 792.46 million shares on hand for trading. On Jul 14, 2022, short shares totaled 11.32 million, which was 1.43% higher than short shares on Jun 14, 2022. In addition to Mr. Thomas Ronald Palmer as the firm’s Pres, CEO & Director, Ms. Nancy K. Buese CPA serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 83.79% of NEM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.71% of NEM, in contrast to 30.12% held by mutual funds. Shares owned by individuals account for 0.63%. As the largest shareholder in NEM with 8.02% of the stake, The Vanguard Group, Inc. holds 63,662,979 shares worth 63,662,979. A second-largest stockholder of NEM, BlackRock Fund Advisors, holds 47,414,771 shares, controlling over 5.97% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in NEM, holding 40,619,717 shares or 5.12% stake. With a 3.55% stake in NEM, the VanEck Gold Miners ETF is the largest stakeholder. A total of 28,168,350 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of NEM stock, is the second-largest Mutual Fund holder. It holds 23,411,643 shares valued at 1.4 billion. Vanguard 500 Index Fund holds 2.21% of the stake in NEM, owning 17,565,106 shares worth 1.05 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, NEM reported revenue of $3.06B and operating income of $562.00M. It generated $387.00M net income for the quarter, which came to $792.00M over the last twelve months. The EBITDA in the recently reported quarter was $1.15B and diluted EPS was $0.49. EBITDA for the full year was $3.84B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NEM since 21 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NEM analysts setting a high price target of $79.52 and a low target of $52.00, the average target price over the next 12 months is $64.49. Based on these targets, NEM could surge 77.34% to reach the target high and rise by 15.97% to reach the target low. Reaching the average price target will result in a growth of 43.82% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. NEM will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $3.60 being high and $2.12 being low. For NEM, this leads to a yearly average estimate of $2.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Newmont Corporation surprised analysts by -$0.20 when it reported $0.46 EPS against a consensus estimate of $0.66. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $1.13 and the low estimate is $0.50. The average estimate for the next quarter is thus $0.74.

Summary of Insider Activity:

Insiders traded NEM stock several times over the past three months with 0 Buys and 7 Sells. In these transactions, 0 shares were bought while 46,000 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 75 over the past year. The total number of shares bought during that period was 475,481 while 422,486 shares were sold.

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