why Newmont Corporation [NEM] is a Good Choice for Investors After New Price Target of $61.87

Newmont Corporation [NYSE: NEM] loss -2.94% or -1.25 points to close at $41.25 with a heavy trading volume of 11640721 shares. The company report on September 23, 2022 that Glencore to Acquire Newmont’s Stake In MARA Project.

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Today, Glencore International AG (GIAG) and Newmont Corporation (NYSE: NEM, TSX: NGT) announced they have reached an agreement in which Glencore will acquire Newmont’s 18.75% shareholding in the MARA Project (MARA). Following completion of the transaction, Glencore will own 43.75% of MARA.

Under the terms of the agreement, Glencore will pay $124.9 million upon closing and a $30 million deferred payment upon commercial production subject to an annual interest charge of 6%. Total deferred consideration is capped at $50 million.

It opened the trading session at $41.49, the shares rose to $41.62 and dropped to $40.50, the range by which the price of stock traded the whole day. The daily chart for NEM points out that the company has recorded -47.27% loss over the past six months. However, it is still -2.43% lower than its most recent low trading price.

If we look at the average trading volume of 9.60M shares, NEM reached to a volume of 11640721 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 $61.87 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.

Goldman have made an estimate for Newmont Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 12, 2022. The new note on the price target was released on September 06, 2022, representing the official price target for Newmont Corporation stock. On July 27, 2022, analysts decreased their price target for NEM shares from 66 to 60.

The Average True Range (ATR) for Newmont Corporation is set at 1.39, with the Price to Sales ratio for NEM stock in the period of the last 12 months amounting to 2.73. The Price to Book ratio for the last quarter was 1.53, with the Price to Cash per share for the same quarter was set at 5.33. Price to Free Cash Flow for NEM in the course of the last twelve months was 53.04 with Quick ratio for the last quarter at 2.10.

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 -5.63. With this latest performance, NEM shares dropped by -7.92% in over the last four-week period, additionally sinking by -47.27% over the last 6 months – not to mention a drop of -23.68% 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 36.60, with the RSI for the last a single of trading hit 35.29, and the three-weeks RSI is set at 35.92 for Newmont Corporation [NEM]. The present Moving Average for the last 50 days of trading for this stock 45.07, while it was recorded at 42.64 for the last single week of trading, and 61.79 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 +15.72 and a Gross Margin at +19.49. Newmont Corporation’s Net Margin is presently recorded at +9.10.

Return on Equity for this stock inclined to 4.93, with Return on Assets sitting at 2.71.

Newmont Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.10 and a Current Ratio set at 2.80.

An analysis of insider ownership at Newmont Corporation [NEM]

There are presently around $26,913 million, or 85.00% of NEM stock, in the hands of institutional investors. The top three institutional holders of NEM stocks are: BLACKROCK INC. with ownership of 93,952,017, which is approximately 1.747% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 67,874,259 shares of the stock with an approximate value of $2.8 billion in NEM stocks shares; and STATE STREET CORP, currently with $1.67 billion in NEM stock with ownership of nearly -0.363% of the company’s market capitalization.

Positions in Newmont Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 554 institutional holders increased their position in Newmont Corporation [NYSE:NEM] by around 50,073,254 shares. Additionally, 535 investors decreased positions by around 34,114,469 shares, while 164 investors held positions by with 568,242,691 shares. The mentioned changes placed institutional holdings at 652,430,414 shares, according to the latest SEC report filing. NEM stock had 111 new institutional investments in for a total of 7,391,262 shares, while 151 institutional investors sold positions of 5,197,997 shares during the same period.


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