Newmont Corporation [NYSE: NEM] gained 2.03% or 1.26 points to close at $63.33 with a heavy trading volume of 6175846 shares. The company report on January 14, 2021 that Newmont Announces $1.0 Billion Share Repurchase Program.
Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) announced its Board of Directors has approved a share repurchase program for up to $1.0 billion of common equity, to be completed over the next 18 months. The program will be executed at the Company’s discretion, utilizing open market repurchases to occur from time to time throughout the authorization period, and is in addition to Newmont’s industry-leading dividend framework.
Newmont’s capital allocation philosophy balances steady reinvestment in the business, maintaining financial strength and flexibility, and providing leading returns to shareholders. Recently, the Company announced an industry-leading dividend framework, which includes a sustainable base dividend and additional returns at higher gold prices. The share repurchase program builds on the $1.0 billion 2020 program, which retired 22 million shares at an average price of $45 per share.
It opened the trading session at $63.20, the shares rose to $63.675 and dropped to $62.12, the range by which the price of stock traded the whole day. The daily chart for NEM points out that the company has recorded 2.89% gains over the past six months. However, it is still -91.91% lower than its most recent low trading price.
If we look at the average trading volume of 6.09M shares, NEM reached to a volume of 6175846 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Newmont Corporation [NEM]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NEM shares is $81.04 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NEM stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Standpoint Research have made an estimate for Newmont Corporation shares, keeping their opinion on the stock as Hold, with their previous recommendation back on May 18, 2020. The new note on the price target was released on April 16, 2020, representing the official price target for Newmont Corporation stock. Previously, the target price had yet another raise to $61, while JP Morgan analysts kept a Overweight rating on NEM stock.
The Average True Range (ATR) for Newmont Corporation is set at 1.65, with the Price to Sales ratio for NEM stock in the period of the last 12 months amounting to 4.76. The Price to Book ratio for the last quarter was 2.24, with the Price to Cash per share for the same quarter was set at 6.17. Price to Free Cash Flow for NEM in the course of the last twelve months was 21.64 with Quick ratio for the last quarter at 2.50.
Trading performance analysis for NEM stock
Newmont Corporation [NEM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.78. With this latest performance, NEM shares gained by 10.02% in over the last four-week period, additionally plugging by 2.89% over the last 6 months – not to mention a rise of 45.52% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NEM stock in for the last two-week period is set at 56.22, with the RSI for the last a single of trading hit 58.00, and the three-weeks RSI is set at 54.39 for Newmont Corporation [NEM]. The present Moving Average for the last 50 days of trading for this stock 61.79, while it was recorded at 62.53 for the last single week of trading, and 62.07 for the last 200 days.
Newmont Corporation [NEM]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Newmont Corporation [NEM] shares currently have an operating margin of +15.67 and a Gross Margin at +20.80. Newmont Corporation’s Net Margin is presently recorded at +29.58.
Return on Total Capital for NEM is now 6.76, given the latest momentum, and Return on Invested Capital for the company is 13.60. Return on Equity for this stock inclined to 18.03, with Return on Assets sitting at 9.48. When it comes to the capital structure of this company, Newmont Corporation [NEM] has a Total Debt to Total Equity ratio set at 32.25. Additionally, NEM Total Debt to Total Capital is recorded at 24.39, with Total Debt to Total Assets ending up at 17.28. Long-Term Debt to Equity for the company is recorded at 31.66, with the Long-Term Debt to Total Capital now at 23.94.
Reflecting on the efficiency of the workforce at the company, Newmont Corporation [NEM] managed to generate an average of $91,044 per employee. Receivables Turnover for the company is 27.05 with a Total Asset Turnover recorded at a value of 0.32.Newmont Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.50 and a Current Ratio set at 2.80.
Newmont Corporation [NEM]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Newmont Corporation posted 0.5/share EPS, while the average EPS was predicted by analysts to be reported at 0.47/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 6.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NEM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Newmont Corporation go to 43.18%.
An analysis of insider ownership at Newmont Corporation [NEM]
There are presently around $40,439 million, or 84.20% of NEM stock, in the hands of institutional investors. The top three institutional holders of NEM stocks are: BLACKROCK INC. with ownership of 97,366,087, which is approximately 1.045% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 74,155,980 shares of the stock with an approximate value of $4.7 billion in NEM stocks shares; and STATE STREET CORP, currently with $2.29 billion in NEM stock with ownership of nearly -2.462% of the company’s market capitalization.
Positions in Newmont Corporation stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 481 institutional holders increased their position in Newmont Corporation [NYSE:NEM] by around 37,141,937 shares. Additionally, 418 investors decreased positions by around 39,895,737 shares, while 134 investors held positions by with 561,500,791 shares. The mentioned changes placed institutional holdings at 638,538,465 shares, according to the latest SEC report filing. NEM stock had 113 new institutional investments in for a total of 2,917,421 shares, while 84 institutional investors sold positions of 2,590,873 shares during the same period.