On June 1, 2023, President & CEO Thomas Palmer sold 11,000 shares of Newmont Corp (NEM, Financial), a leading gold mining company. This sale comes as part of a series of transactions made by Palmer over the past year, during which he has sold a total of 132,000 shares and purchased none.
Who is Thomas Palmer?
Thomas Palmer has been with Newmont Corp since 2014, initially serving as Senior Vice President of Asia Pacific. In 2018, he was appointed Executive Vice President and Chief Operating Officer, and in 2019, he became the President and CEO of the company. Under Palmer's leadership, Newmont Corp has continued to expand its global presence and maintain its position as a top gold producer.
Newmont Corp's Business Description
Newmont Corp is a leading gold mining company with operations in North America, South America, Australia, and Africa. The company primarily focuses on the production of gold, but also produces copper, silver, zinc, and lead. Newmont Corp is committed to responsible mining practices and has a strong track record of environmental stewardship and community engagement. With a market cap of $33,450.231 million, Newmont Corp is one of the largest gold mining companies in the world.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been no insider buys for Newmont Corp, while there have been 26 insider sells. This trend can be seen in the following insider trend image: 
. The lack of insider buying activity may raise concerns for some investors, as it could indicate a lack of confidence in the company's future prospects. However, it is essential to consider the context of these transactions and the overall market conditions.
On the day of Thomas Palmer's recent sale, shares of Newmont Corp were trading at $40.84 apiece. This price represents a significant discount to the company's GuruFocus Value of $67.10, as shown in the GF Value image: 
. With a price-to-GF-Value ratio of 0.61, the stock is considered a possible value trap, and investors should think twice before making a decision based on its GF Value.
Valuation
The GF Value is an intrinsic value estimate developed by GuruFocus that takes into account the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
While the lack of insider buying activity and the stock's current price-to-GF-Value ratio may raise concerns for some investors, it is essential to consider the broader context of the company's performance and the overall market conditions. Newmont Corp has a strong track record of growth and responsible mining practices, and its operations span multiple continents, providing some level of diversification.
In conclusion, investors should carefully consider the insider selling activity of Newmont Corp's CEO Thomas Palmer, as well as the company's valuation and overall performance. While the stock may appear undervalued based on its GF Value, the lack of insider buying activity and the potential value trap designation warrant further analysis and consideration before making an investment decision.
