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

Newmont Co. (NYSE:NEM) was the target of unusually large options trading on Friday. Traders acquired 57,822 call options on the stock. This represents an increase of 61% compared to the average daily volume of 35,925 call options.

Newmont Stock Down 1.0 %

Shares of NEM stock traded down $0.47 during mid-day trading on Friday, hitting $48.78. The stock had a trading volume of 19,926,394 shares, compared to its average volume of 10,319,217. The firm has a market capitalization of $55.97 billion, a P/E ratio of -23.23, a price-to-earnings-growth ratio of 0.49 and a beta of 0.50. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.11 and a quick ratio of 1.85. Newmont has a 12-month low of $29.42 and a 12-month high of $58.72. The firm’s 50-day moving average is $53.43 and its two-hundred day moving average is $46.74.

Newmont (NYSE:NEM) last posted its earnings results on Wednesday, October 23rd. The basic materials company reported $0.81 EPS for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.05). The business had revenue of $4.61 billion for the quarter, compared to analysts’ expectations of $4.67 billion. Newmont had a negative net margin of 13.16% and a positive return on equity of 8.35%. The company’s revenue for the quarter was up 84.7% on a year-over-year basis. During the same period last year, the business posted $0.36 EPS. On average, analysts predict that Newmont will post 3.07 earnings per share for the current fiscal year.

Newmont Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 23rd. Shareholders of record on Wednesday, November 27th will be issued a $0.25 dividend. The ex-dividend date is Wednesday, November 27th. This represents a $1.00 dividend on an annualized basis and a yield of 2.05%. Newmont’s dividend payout ratio is presently -47.17%.

Insiders Place Their Bets

In other news, EVP Peter Toth sold 3,000 shares of the business’s stock in a transaction on Tuesday, October 1st. The shares were sold at an average price of $53.81, for a total value of $161,430.00. Following the transaction, the executive vice president now owns 91,596 shares of the company’s stock, valued at approximately $4,928,780.76. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, EVP Peter Toth sold 3,000 shares of the business’s stock in a transaction dated Tuesday, October 1st. The stock was sold at an average price of $53.81, for a total value of $161,430.00. Following the sale, the executive vice president now directly owns 91,596 shares in the company, valued at approximately $4,928,780.76. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Thomas Ronald Palmer sold 20,000 shares of Newmont stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $52.47, for a total value of $1,049,400.00. Following the completion of the sale, the chief executive officer now directly owns 291,469 shares in the company, valued at approximately $15,293,378.43. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 66,000 shares of company stock worth $3,434,640 in the last three months. 0.06% of the stock is owned by company insiders.

Institutional Trading of Newmont

Institutional investors have recently modified their holdings of the company. Hoese & Co LLP purchased a new stake in Newmont during the third quarter valued at approximately $27,000. Meeder Asset Management Inc. acquired a new stake in shares of Newmont in the 2nd quarter worth $27,000. LRI Investments LLC purchased a new position in Newmont during the 1st quarter worth $25,000. Northwest Investment Counselors LLC acquired a new position in Newmont during the 3rd quarter valued at about $48,000. Finally, Heritage Wealth Advisors raised its stake in Newmont by 1,310.4% in the first quarter. Heritage Wealth Advisors now owns 945 shares of the basic materials company’s stock valued at $34,000 after buying an additional 878 shares during the last quarter. 68.85% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. UBS Group upped their target price on shares of Newmont from $65.00 to $67.00 and gave the company a “buy” rating in a research report on Tuesday, October 15th. Veritas upgraded Newmont to a “strong-buy” rating in a report on Monday, September 30th. Jefferies Financial Group increased their price target on Newmont from $54.00 to $63.00 and gave the company a “buy” rating in a report on Friday, October 4th. Royal Bank of Canada lowered their price target on Newmont from $54.00 to $53.00 and set a “sector perform” rating for the company in a research report on Thursday. Finally, Argus upgraded shares of Newmont from a “hold” rating to a “buy” rating and set a $58.00 price objective on the stock in a research report on Thursday, August 29th. Six research analysts have rated the stock with a hold rating, nine have given a buy rating and three have given a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $54.15.

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.