Newmont Corporation was formerly known as Newmont Mining Corporation. It is an American gold mining company situated in Colorado. The company was incorporated in 1921 and owns gold mines in Colorado, Mexico, Quebec, Ontario, and many other places. It generally mines Copper, Silver, Zinc, and Lead. The company currently has approximately 31K employees and contractors worldwide. It is the one in only gold mine company to make its position in Standard & Poor’s 500 stock index.
Newmont Corporation has 793.569 Million shares floating in the market available for trading, leading to a market cap of $30.043 Billion. It has a debt/equity ratio of 31.79% which is neutral for the company. The P/B ratio of the company is 1.56 which is considered strong for the future performance of the company.
The current ratio of the Newmont Corp. is 2.28. It shows the NEM company is capable enough to repay its debt in the future. The operating cycle of the company is 87.29 days and the days of payables outstanding is 24.62. The operating free cash flow of the company declined by -36.4 year-on-year. That is not a good sign for the company, but the financial ratios are reliable for the company.
Newmont Corporation Stock Performance Analysis
Newmount Corp. revenue has been constant over the years without any significant change but the profit margin seems to be very volatile. It declined from 9.57% in the year 2021 to -3.84% in the year 2022. The company has again maintained its debt but the free cash flow is changing with uncertainty.
Performance Analysis of NEM Stock
Based upon the Tradingview, 20 analysts are analyzing the stock out of which 8 analysts have given a buy rating while 8 are recommending to hold the stock. Analysts are aiming for a maximum target price of $68.31 while the average price of the stock is considered to be 41% above the CMP of NEM stock.
NEM Stock Technical Analysis
NEM stock price has been consistently declining from the higher levels leading to the formation of a falling wedge pattern. The NEM stock price is still revolving around the same and is making a bullish candle reversing from the lower levels.
The NEM stock is currently trading in a death cross of 50-day and the 200-day EMA. This is caused due to consistent decline and lower low structure formed on the daily chart.
The RSI for the NEM stock is showing a volatile behavior and can be considered bearish on the charts. If the RSI breaks above the channel pattern it can lead the NEM stock to higher levels. This will lead to an uptrend in the stock.
Despite of one of the largest mining company, the Newmont Corporation have reliable financials while the profit margin seems to be more volatile. The NEM share price is currently making a bearing market structure. The EMA is also acting uncertain to bearish while the RSI is volatile.
Therefore, if the NEM stock price breaks above the falling wedge pattern we can witness a change in trend to bullish. If the stock fails to do so we can see a continuation in the downtrend of the stock.
- Support levels- $30.00 and $35.00
- Resistance levels- $55.00 and $64.50
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