Finance

Should You Invest in Newmont Mining Corporation (NEM)? A Look at the Insider Trends

Recent insider trends for Newmont Mining Corporation (NYSE:NEM) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. NEM’s insider trading patterns have some implications for where the stock might be headed.

Institutions own 83.98% of Newmont Mining Corporation (NEM)’s shares. The total value of these holdings, in millions, is $16,581. Among active positions in the latest quarter, 273 holders increased their positions by a total of 33.49 million shares, 264 holders decreased the positions by a total of 23.97 million shares, and 99 holders held their positions. This works out to a net increase in ownership of 9.52 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 70 holders initiated new positions by a total of 4.94 million shares and 46 holders exited their positions by a total of 2.1 million shares. This nets out to an increase of 2.83 million shares and is a bullish sign for NEM.

In the last three months, insiders executed a total of 10 trades. 10 were sells. Insider ownership decreased by a total of 29700 shares, which suggests that NEM’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 22 buys and 70 sells, and ownership increased by a net of 330385 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Newmont Mining Corporation (NYSE:NEM)’s short interest is 10.14 million shares, or 1.91% of the float. This represents an increase of 18% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that NEM is a buy, which implies that NEM is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Newmont Mining Corporation (NYSE:NEM) is undervalued.

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