Shares of Newmont Mining Corporation (NYSE:NEM) recorded 3.05% gain during trading session on January 25th, 2019. The script traded as low as $32.57 and last traded at $33.16. 10.29 million shares changed exchanged hands during trading, a drop of -51.75% from the 30-day average session volume of 6.78M shares. The firm had previously closed at $32.18. The company has $533.00M outstanding shares, a price-to-earnings ratio of 39.38, price-to-earnings-growth ratio of 2.48and a beta of 0.03. The company has a RSI of 51.48, ATR of 0.98 and a volatility of 2.11% this week. NEM has a 52 week low price of $29.06 and a 52 week high price of $41.98.
Investors have identified the tech company Newmont Mining Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 17.67B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Newmont Mining Corporation (NEM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For NEM, the company has in raw cash 3.07 billion on their books with 293 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 4.94 billion total, with 361 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
NEM were able to record 324 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 147 million. In cash movements, the company had a total of 1.09 billion as operating cash flow.
Potential earnings growth for Newmont Mining Corporation (NEM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Newmont Mining Corporation recorded a total of 1.73 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.09% coming in sequential stages and their sales for the third quarter increasing by 0.04%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 995 million trying to sell their products during the last quarter, with the result yielding a gross income of 731 million. This allows shareholders to hold on to 533.00M with the revenue now reading -145000000 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.22 cents a share).
Is the stock of NEM attractive?
Having a look at the company’s valuation, the company is expected to record 1.27 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NEM sounds very interesting.
In related news, EVP and General Counsel Gottesfeld Stephen P sold 3,500 shares of the company’s stock in a transaction that recorded on January 11th, 2019. The sale was performed at an average price of 35.03, for a total value of 122,605. As the sale deal closes, the President and COO Gottesfeld Stephen P now sold 1,250 shares of the company’s stock, valued at 43,038. Also, EVP & Chief Technology Officer Lawson Scott P sold 5,000 shares of the company’s stock in a deal that was recorded on January 2nd, 2019. The shares were sold at an average price of 34.27 per share, with a total market value of 79,091. Following this completion of acquisition, the EVP, S&ER now holds 3,000 shares of the company’s stock, valued at 103,290. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
3 out of 17 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Newmont Mining Corporation stock. 0 analysts has assigned a Sell rating on the NEM stock. The 12-month mean consensus price target for the company’s shares has been set at $40.00.