The stock of Newmont Corp (NYSE: NEM) has increased by 1.22 when compared to last closing price of 38.55.Despite this, the company has seen a gain of 0.98% in its stock price over the last five trading days. Seeking Alpha reported 2024-04-21 that Gold prices have been rising, but gold miners have not seen the same increase in their share prices. Newmont Corporation has potential for at least a 24% upside at current gold prices. The upcoming Q1’24 earnings release and potential increase in guidance could serve as an upside trigger for Newmont.
Is It Worth Investing in Newmont Corp (NYSE: NEM) Right Now?
NEM has 36-month beta value of 0.50. Analysts have mixed views on the stock, with 9 analysts rating it as a “buy,” 2 as “overweight,” 7 as “hold,” and 0 as “sell.”
The public float for NEM is 1.15B, and currently, short sellers hold a 1.44% ratio of that float. The average trading volume of NEM on April 22, 2024 was 14.34M shares.
NEM’s Market Performance
NEM stock saw an increase of 0.98% in the past week, with a monthly gain of 13.76% and a quarterly increase of 12.84%. The volatility ratio for the week is 2.68%, and the volatility levels for the last 30 days are 3.08% for Newmont Corp (NEM). The simple moving average for the last 20 days is 4.80% for NEM’s stock, with a simple moving average of 2.81% for the last 200 days.
Analysts’ Opinion of NEM
Many brokerage firms have already submitted their reports for NEM stocks, with Jefferies repeating the rating for NEM by listing it as a “Buy.” The predicted price for NEM in the upcoming period, according to Jefferies is $38 based on the research report published on February 29, 2024 of the current year 2024.
NEM Trading at 12.61% from the 50-Day Moving Average
After a stumble in the market that brought NEM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -22.24% of loss for the given period.
Volatility was left at 3.08%, however, over the last 30 days, the volatility rate increased by 2.68%, as shares surge +13.00% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +15.96% upper at present.
During the last 5 trading sessions, NEM rose by +0.98%, which changed the moving average for the period of 200-days by -7.43% in comparison to the 20-day moving average, which settled at $37.46. In addition, Newmont Corp saw -5.73% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at NEM starting from Atkinson Robert D, who sale 5,500 shares at the price of $41.26 back on Jan 02 ’24. After this action, Atkinson Robert D now owns 54,251 shares of Newmont Corp, valued at $226,930 using the latest closing price.
Atkinson Robert D, the EVP & COO of Newmont Corp, sale 5,500 shares at $40.25 during a trade that took place back on Dec 01 ’23, which means that Atkinson Robert D is holding 59,751 shares at $221,375 based on the most recent closing price.
Stock Fundamentals for NEM
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.14 for the gross margin
The net margin for Newmont Corp stands at -0.21. The total capital return value is set at 0.01. Equity return is now at value -10.34, with -5.32 for asset returns.
Based on Newmont Corp (NEM), the company’s capital structure generated 0.24 points at debt to capital in total, while cash flow to debt ratio is standing at 0.31. The debt to equity ratio resting at 0.31. The interest coverage ratio of the stock is 2.11.
Currently, EBITDA for the company is 4.29 billion with net debt to EBITDA at 1.63. When we switch over and look at the enterprise to sales, we see a ratio of 4.38. The receivables turnover for the company is 9.6for trailing twelve months and the total asset turnover is 0.21. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.25.
Conclusion
To put it simply, Newmont Corp (NEM) has had a mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
