Gold Miner Newmont Surges 4.52% on $630M Trading Volume Boosted by $3B Buyback Expansion

Newmont Corporation (NEM) surged 4.52% on August 4, trading with a $0.63 billion volume, as institutional confidence and strategic buybacks bolstered investor sentiment. The gold miner announced a $3 billion increase to its share repurchase program, expanding its capacity to $3.2 billion—approximately 4.6% of its market cap. This move aligns with analysts’ optimism for gold prices, with J.P. Morgan projecting a rise to $4,000 per ounce by mid-2026.

Institutional ownership of Newmont grew significantly in Q1 and Q4 2024, with major holders like Allianz SE, Bank of New York Mellon, and UBS AM increasing stakes by 3.0% to 16.5%. These firms collectively hold 68.85% of the stock, signaling strong institutional backing. However, insider sales in early 2025, including transactions by Director Bruce Brook and EVP Peter Toth, reduced insider ownership by 3.73% to 4.60% in the last quarter.

Analysts revised price targets upward, with UBS Group raising its target to $68.00 and Royal Bank of Canada to $66.00. The stock now carries a “Moderate Buy” rating and a $64.58 consensus price. Newmont’s recent quarterly earnings exceeded estimates, reporting $1.43 EPS versus $0.95 expected, alongside a $0.25 dividend yielding 1.6% annually.

A backtest of a high-volume trading strategy showed a 166.71% return from 2022 to present, outperforming the benchmark by 137.53%. This highlights the impact of liquidity concentration in volatile markets, where high-volume stocks like Newmont can amplify short-term gains. The results underscore the interplay between institutional activity, market dynamics, and strategic buybacks in driving performance.