Newmont Mining Corp. (NEM) Shares Slip, Investors Watching Closely, Here is Why

Newmont Mining Corp. (NYSE: NEM) shares fell on Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Shares of Newmont Mining Corp. (NYSE: NEM) were downgraded by analysts at Citigroup Inc. in a note to their investors today. The company currently has a rating of Neutral on the shares. A number of other analysts have commented on the stock in recent days, and Newmont Mining Corp. has secured a consensus one-year price target of $43.82, higher than the opening price of $32.71. Newmont Mining Corp. stock has a 52-week high of $46.07. Considerable and major changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have diminished from the initial recommendation.

Newmont Mining Corp. (NYSE: NEM) shares last traded at $33.03, a decrease of $0.55 per share or -1.64% from the previous closing price. Opening at $32.71, they fluctuated from $32.65 and $33.20 throughout the day.

Newmont Mining Corp. (NYSE: NEM) currently has a market cap of 17.53B.

Newmont Mining Corp. (NYSE: NEM) Average Daily Trading Volume

The stock’s average daily volume is 7,574,480 shares out of a total float 529,099,000 and some 1,267,013 shares crossed the trading desk yesterday, lower than the norm. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume growth or circulation by institutional investors.

However, one day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Newmont Mining Corp. (NYSE: NEM) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

Trades for Newmont Mining Corp. (NYSE: NEM) have ranged from $16.05 – 46.0700, and the stock now has a 50-day MA of $34.86 and 200-day MA of $37.91. Today’s last price is 28.30%% below the 52 week high of $46.07.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more for the past 3 years.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.

Leave a Reply

Your email address will not be published. Required fields are marked *