Newmont (NYSE:NEM) Shares Cross Below 200-Day Moving Average – Should You Sell?

Newmont Co. (NYSE:NEM)’s share price crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $47.07 and traded as low as $36.86. Newmont shares last traded at $37.22, with a volume of 9,341,507 shares.

Wall Street Analyst Weigh In

A number of research firms have commented on NEM. CIBC cut Newmont from a “sector outperform” rating to a “neutral” rating in a report on Monday, October 28th. Cibc World Mkts cut Newmont from a “strong-buy” rating to a “hold” rating in a report on Monday, October 28th. CLSA initiated coverage on shares of Newmont in a report on Friday, November 29th. They set an “underperform” rating for the company. Scotiabank downgraded shares of Newmont from a “sector outperform” rating to a “sector perform” rating and lowered their target price for the stock from $59.00 to $55.00 in a report on Friday, October 25th. Finally, Veritas raised shares of Newmont to a “strong-buy” rating in a research note on Monday, September 30th. One research analyst has rated the stock with a sell rating, eight have given a hold rating, seven have assigned a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, Newmont presently has an average rating of “Moderate Buy” and an average target price of $54.31.

Newmont Trading Up 0.6 %

The company has a 50-day moving average price of $41.98 and a two-hundred day moving average price of $47.07. The stock has a market cap of $42.37 billion, a P/E ratio of -24.49, a P/E/G ratio of 0.35 and a beta of 0.49. The company has a current ratio of 1.96, a quick ratio of 1.73 and a debt-to-equity ratio of 0.30.

Newmont (NYSE:NEM) last posted its quarterly earnings data on Wednesday, October 23rd. The basic materials company reported $0.81 earnings per share for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.05). Newmont had a negative net margin of 7.03% and a positive return on equity of 9.80%. The firm had revenue of $4.61 billion for the quarter, compared to the consensus estimate of $4.67 billion. During the same quarter last year, the firm earned $0.36 EPS. The company’s revenue was up 84.7% on a year-over-year basis. On average, research analysts expect that Newmont Co. will post 3.08 EPS for the current fiscal year.

Newmont Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 23rd. Shareholders of record on Wednesday, November 27th were given a dividend of $0.25 per share. The ex-dividend date was Wednesday, November 27th. This represents a $1.00 annualized dividend and a dividend yield of 2.69%. Newmont’s dividend payout ratio (DPR) is presently -65.79%.

Insider Transactions at Newmont

In related news, Director Harry M. Iv Conger purchased 9,498 shares of Newmont stock in a transaction that occurred on Wednesday, November 27th. The shares were bought at an average price of $42.15 per share, with a total value of $400,340.70. Following the purchase, the director now directly owns 14,498 shares of the company’s stock, valued at approximately $611,090.70. This represents a 189.96 % increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.06% of the company’s stock.

Hedge Funds Weigh In On Newmont

Institutional investors have recently modified their holdings of the stock. Rothschild Investment LLC bought a new stake in Newmont during the 2nd quarter valued at $102,000. Commonwealth Equity Services LLC lifted its stake in Newmont by 5.4% in the second quarter. Commonwealth Equity Services LLC now owns 291,119 shares of the basic materials company’s stock worth $12,189,000 after acquiring an additional 14,912 shares during the period. Farther Finance Advisors LLC grew its holdings in Newmont by 80.7% during the 2nd quarter. Farther Finance Advisors LLC now owns 8,007 shares of the basic materials company’s stock worth $333,000 after acquiring an additional 3,575 shares in the last quarter. Summit Financial LLC purchased a new position in Newmont during the 2nd quarter valued at about $424,000. Finally, Natixis Advisors LLC raised its holdings in shares of Newmont by 70.3% in the 2nd quarter. Natixis Advisors LLC now owns 120,787 shares of the basic materials company’s stock valued at $5,057,000 after purchasing an additional 49,859 shares in the last quarter. 68.85% of the stock is owned by hedge funds and other institutional investors.

About Newmont

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana.