On July 3, 2023, Thomas Palmer, President & CEO of Newmont Corp (NEM, Financial), sold 11,000 shares of the company. This move is part of a larger trend of insider selling at Newmont Corp, with Palmer himself having sold a total of 132,000 shares over the past year.
Thomas Palmer has been with Newmont Corp for several years, serving in various leadership roles before assuming his current position as President & CEO. His insider trades provide valuable insight into the company's financial health and future prospects.
Newmont Corp is a leading gold mining company with operations in various parts of the world. The company is known for its robust portfolio of assets, superior operational execution, and strong financial position. Despite the challenging market conditions, Newmont Corp has managed to maintain its industry-leading performance.
The recent insider selling at Newmont Corp raises questions about the company's future prospects. Over the past year, there have been 23 insider sells and no insider buys. This trend suggests that insiders may be less optimistic about the company's future performance.
The above image shows the insider selling trend at Newmont Corp. The consistent selling by insiders, including Palmer, could be a red flag for potential investors.
On the day of Palmer's recent sell, Newmont Corp's shares were trading at $42.85, giving the company a market cap of $33.01 billion. Despite the insider selling, the company's stock appears to be undervalued based on its GuruFocus Value.
The above image shows the GF Value of Newmont Corp. With a price of $42.85 and a GuruFocus Value of $70.01, the stock has a price-to-GF-Value ratio of 0.61. This suggests that the stock is a possible value trap, and investors should think twice before investing.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, while Newmont Corp's stock appears to be undervalued, the consistent insider selling, including the recent sell by President & CEO Thomas Palmer, could be a cause for concern. Investors should carefully consider these factors before making investment decisions.
