Newmont Mining (NEM) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Newmont Mining (NYSE:NEM) from a strong-buy rating to a hold rating in a report published on Friday morning.

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 analysts have also commented on the stock. Royal Bank of Canada reiterated a hold rating and set a $43.00 price objective on shares of Newmont Mining in a research note on Tuesday, December 5th. TheStreet upgraded shares of Newmont Mining from a c+ rating to a b rating in a research note on Wednesday, October 11th. FBR & Co set a $40.00 price objective on shares of Newmont Mining and gave the stock a hold rating in a research note on Tuesday, October 31st. BMO Capital Markets reiterated a buy rating and set a $43.00 price objective on shares of Newmont Mining in a research note on Wednesday, December 20th. Finally, TD Securities set a $42.00 price objective on shares of Newmont Mining and gave the stock a hold rating in a research note on Thursday, October 19th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. Newmont Mining has a consensus rating of Hold and a consensus target price of $41.95.

Newmont Mining (NYSE:NEM) traded up $0.23 during trading hours on Friday, hitting $39.47. 3,960,445 shares of the stock traded hands, compared to its average volume of 4,810,000. Newmont Mining has a twelve month low of $31.42 and a twelve month high of $40.25. The company has a debt-to-equity ratio of 0.33, a quick ratio of 3.58 and a current ratio of 4.18. The company has a market cap of $21,050.00, a price-to-earnings ratio of 56.39 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 EPS for the quarter, topping the consensus estimate of $0.33 by $0.02. The firm had revenue of $1.88 billion during the quarter, compared to analyst estimates of $1.86 billion. Newmont Mining had a net margin of 1.18% and a return on equity of 6.20%. Newmont Mining’s revenue was up 4.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.38 EPS. sell-side analysts expect that Newmont Mining will post 1.47 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, December 28th. Shareholders of record on Friday, December 8th were given a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a yield of 0.76%. The ex-dividend date was Thursday, December 7th. Newmont Mining’s dividend payout ratio is presently 42.86%.

In other Newmont Mining news, insider Gary J. Goldberg sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 2nd. The shares were sold at an average price of $37.89, for a total transaction of $37,890.00. Following the sale, the insider now owns 156,096 shares of the company’s stock, valued at approximately $5,914,477.44. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, COO Thomas Ronald Palmer sold 1,250 shares of the business’s stock in a transaction that occurred on Wednesday, November 1st. The stock was sold at an average price of $36.44, for a total transaction of $45,550.00. Following the sale, the chief operating officer now directly owns 86,862 shares in the company, valued at approximately $3,165,251.28. The disclosure for this sale can be found here. In the last three months, insiders have sold 27,700 shares of company stock worth $1,020,676. 0.32% of the stock is owned by insiders.

Large investors have recently added to or reduced their stakes in the business. Timber Hill LLC purchased a new stake in Newmont Mining during the 3rd quarter worth approximately $260,000. Deane Retirement Strategies Inc. purchased a new stake in Newmont Mining during the 3rd quarter worth approximately $1,513,000. Commonwealth Bank of Australia grew its position in Newmont Mining by 5.7% during the 3rd quarter. Commonwealth Bank of Australia now owns 433,082 shares of the basic materials company’s stock worth $16,239,000 after purchasing an additional 23,286 shares during the last quarter. Saratoga Research & Investment Management purchased a new stake in shares of Newmont Mining in the 3rd quarter valued at $382,000. Finally, Gabelli Funds LLC boosted its holdings in shares of Newmont Mining by 3.7% in the 3rd 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 during the last quarter. 81.86% of the stock is currently owned by institutional investors.

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About Newmont Mining

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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