Traders Purchase High Volume of Call Options on Newmont (NYSE:NEM)

Newmont Corporation (NYSE:NEM) was the target of some unusual options trading activity on Wednesday. Investors acquired 37,951 call options on the stock. This is an increase of approximately 71% compared to the average volume of 22,130 call options.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on NEM shares. Royal Bank Of Canada decreased their target price on Newmont from $140.00 to $135.00 and set an “outperform” rating on the stock in a research note on Thursday, July 9th. TD Cowen reiterated a “buy” rating on shares of Newmont in a research report on Monday, April 27th. Scotiabank decreased their price target on shares of Newmont from $151.00 to $147.00 and set a “sector outperform” rating on the stock in a report on Tuesday, July 14th. UBS Group cut their target price on shares of Newmont from $140.00 to $120.00 and set a “buy” rating for the company in a research report on Tuesday, June 30th. Finally, Raymond James Financial lowered their price target on Newmont from $139.00 to $137.00 and set an “outperform” rating on the stock in a research report on Tuesday, June 30th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $132.83.

Newmont Trading Down 0.9%

Shares of Newmont stock traded down $0.81 during midday trading on Wednesday, reaching $90.71. 2,468,123 shares of the company’s stock traded hands, compared to its average volume of 9,137,052. The stock has a 50 day moving average of $99.34 and a 200-day moving average of $109.76. Newmont has a 12 month low of $61.76 and a 12 month high of $134.88. The company has a market cap of $95.58 billion, a PE ratio of 11.45, a price-to-earnings-growth ratio of 1.11 and a beta of 0.46. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.26 and a current ratio of 2.55.

Newmont (NYSE:NEM) last posted its quarterly earnings data on Thursday, July 23rd. The basic materials company reported $2.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.05 by $0.05. Newmont had a return on equity of 29.10% and a net margin of 33.36%.The business had revenue of $6.12 billion during the quarter, compared to the consensus estimate of $6.35 billion. During the same quarter in the prior year, the company earned $1.43 earnings per share. As a group, equities analysts expect that Newmont will post 8.92 EPS for the current fiscal year.

Newmont Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 28th. Shareholders of record on Thursday, September 3rd will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, September 3rd. Newmont’s dividend payout ratio is currently 13.13%.

Insider Buying and Selling

In other Newmont news, CEO Natascha Viljoen sold 3,882 shares of the company’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $105.32, for a total value of $408,852.24. Following the completion of the sale, the chief executive officer directly owned 142,999 shares of the company’s stock, valued at approximately $15,060,654.68. This represents a 2.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Peter Wexler sold 13,378 shares of Newmont stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $110.11, for a total transaction of $1,473,051.58. Following the completion of the sale, the executive vice president directly owned 67,865 shares in the company, valued at approximately $7,472,615.15. This represents a 16.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 28,556 shares of company stock worth $3,058,146 over the last three months. Company insiders own 0.06% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of NEM. Accel Wealth Management increased its stake in Newmont by 0.8% in the 2nd quarter. Accel Wealth Management now owns 14,744 shares of the basic materials company’s stock worth $1,377,000 after acquiring an additional 115 shares during the last quarter. Tema ETFs LLC lifted its stake in shares of Newmont by 10.1% during the 2nd quarter. Tema ETFs LLC now owns 19,015 shares of the basic materials company’s stock worth $1,776,000 after acquiring an additional 1,740 shares during the last quarter. E. Ohman J or Asset Management AB lifted its position in shares of Newmont by 4.5% during the second quarter. E. Ohman J or Asset Management AB now owns 37,498 shares of the basic materials company’s stock worth $3,502,000 after purchasing an additional 1,600 shares during the last quarter. Fulcrum Equity Management boosted its position in Newmont by 30.1% in the 2nd quarter. Fulcrum Equity Management now owns 2,599 shares of the basic materials company’s stock valued at $243,000 after buying an additional 601 shares during the period. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors purchased a new stake in shares of Newmont in the second quarter valued at approximately $381,000. Institutional investors own 68.85% of the company’s stock.

Newmont Company Profile

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.