Newmont Receives Underperform Rating from CLSA Analysts

A recent report indicates that CLSA has initiated coverage of Newmont, issuing an 'Underperform' recommendation. Despite some institutional interest, the decline in total shares owned may signal caution among investors.

Date: 01-12-2024

AI Rating: 4

The report discusses CLSA's recent coverage initiation of Newmont (SNSE:NEMCL) with a rating of 'Underperform.' This negative outlook could directly affect investor sentiment and likelihood of stock price depreciation.

In terms of institutional ownership, the report indicates there are 1,973 funds or institutions holding positions in Newmont, increasing by 5.68% over the last quarter. However, total shares owned by these institutions decreased by 1.03%, indicating a net selling pressure that may influence stock prices negatively.

Several major shareholders were highlighted: BlackRock increased its share holding by 0.87% while maintaining a significant 10.61% ownership. Van Eck Associates and GDX both showed declines in their shares owned. Van Eck reported a decrease of 4.02%, while GDX decreased by 5.28%. This mixed activity among institutions, despite some increases in portfolio allocations, could create uncertainty for investors.

Another positive note is that the Vanguard Total Stock Market Index Fund Investor Shares observed a slight increase of 0.16% in its shareholding and a substantial increase in portfolio allocation by 20.10%. This might indicate continued confidence from some quarters, although it needs to be weighed against wider trends of reduced shares owned.

Overall, the report highlights an increasing number of funds but signals caution due to the decline in total shares owned by institutions. Investors may interpret this data as a sign of weakening confidence, aligning with CLSA's negative recommendation, which could pressure Newmont's stock price in the short term.

Stocks: NEMCL