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Analyst Downgrades: Newmont Mining Corp, Kinross Gold Corporation, and GoPro Inc

Analysts downwardly revised their ratings and price targets on Newmont Mining Corp (NEM), Kinross Gold Corporation (USA) (KGC), and GoPro Inc (GPRO)

Dec 5, 2016 at 9:53 AM
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Analysts are weighing in on gold stocks Newmont Mining Corp (NYSE:NEM) and Kinross Gold Corporation (USA) (NYSE:KGC), as well as camera maker GoPro Inc (NASDAQ:GPRO). Here's a quick roundup of today's bearish brokerage notes on NEM, KGC, and GPRO.

  • NEM is off 2.5% at $32.74 following a downgrade to "neutral" from "buy" at Citigroup, which also lowered its price target on the stock to $34 from $44. The shares have been stuck beneath resistance at the $34 mark in recent weeks, as the price of gold slumps, but Newmont Mining Corp is still sitting on a hefty 82% year-to-date lead. Like analysts, options traders seem to be tempering their expectations for the stock. NEM holds a 10-day put/call volume ratio of 3.63 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- just 3 percentage points from a 12-month high. 

  • Citigroup also weighed in on KGC, slashing its rating to "sell" from "neutral." The stock has dropped 3.5% to $3.35 as a result, paring its 2016 gains to 84%. Like NEM, Kinross Gold Corporations has taken a hit as gold prices have suffered in recent weeks, though it seems the shares may have found a foothold at the $3.20-$3.50 area, which served as resistance in February and March. Meanwhile, short sellers have been hitting the exits. During the most recent two-week reporting period, these bearish bets dropped by 20%, and now account for less than 1% of KGC's available float. 

  • GPRO is up 0.6% at $9.76, even after an analyst at Dougherty reiterated a "sell" rating and $6 price target, representing record-low territory, and a 38.5% discount to current trading levels. The brokerage firm noted a large drop in Google searches for the GoPro Inc brand, and a sharp drop in downloads for the company's mobile app. The stock has had a rough go of it, giving back 46% so far this year, and options traders have hit a pessimistic extreme. At the ISE, CBOE, and PHLX, GPRO's 10-day put/call volume ratio of 5.61 represents a bearishly skewed 12-month peak. What's more, this reading was docked at just 0.50 roughly two weeks ago. 
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