Mining Stock Tumbles as Oil Prices Soften

Newmont is brushing off upbeat second-quarter results

Newmont Corporation (NYSE:NEM) stock is down 3.5% to trade at $46.07 at last check, brushing off a second-quarter earnings and revenue beat as gold prices soften. The mining stock also drew a price-target hike to $57 from $56 at BMO earlier today, bringing its 12-month consensus target price to $53.35 — a roughly 16% premium to current levels.

Today’s pullback has the shares testing support from the 20-day moving average, after gapping below the trendline earlier in the session. The equity is pulling back from a July 17, 52-week high of $48.21, but still sports a more than 11% lead for 2024, with 33.6% amassed in the last six months.

NEM 20 Day

Short-term options traders have been more bearish than usual. This is per the security’s Schaeffer’s put/call open interest ratio (SOIR) that stands in 82nd percentile of readings from the past year.

Its also worth noting that the stock’s Schaeffer’s Volatility Scorecard (SVS) ranks at 72 out of 100. This means the security outperformed volatility expectations in the past year.

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