Spotlight on Newmont: Analyzing the Surge in Options Activity
Portfolio Pulse from Benzinga Insights
Newmont (NYSE:NEM) has seen a surge in options activity, with 80% of trades showing bearish sentiment despite the stock's recent 1.92% increase to $34.96. Analysis of unusual trades reveals a price target range of $30.0 to $40.0. The company, the world's largest gold miner, recently acquired Newcrest, planning to sell 20% of its higher cost mines. Analysts have set an average target price of $43.5, with Scotiabank maintaining a Sector Perform rating at $43.
March 21, 2024 | 2:19 pm
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Newmont's bearish options activity contrasts with its stock's recent gain and analysts' higher target prices. The acquisition of Newcrest and planned sale of costlier mines could influence its financial outlook.
The bearish options sentiment might reflect market skepticism about Newmont's short-term prospects despite its strategic acquisitions and analysts' optimistic target prices. However, the company's actions to streamline operations by selling higher cost mines could mitigate concerns, making the short-term impact neutral.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100