NewMarket Surges 1.2 as Trading Volume Ranks 433rd Amid Institutional Buying Spree

NewMarket (NYSE:NEU) closed 1.20% higher on August 21, 2025, with a trading volume of $200 million, a 125.81% increase from the previous day. The stock ranked 433rd in trading activity among listed companies. Institutional investors have shown renewed interest in the specialty chemicals firm, with American Century Companies Inc. boosting its stake by 120.3% in Q1, holding 105,120 shares valued at $59.5 million. Barclays PLC significantly increased its position by 293.3% during the same period, now owning 18,928 shares worth $10 million. Other institutional buyers, including Bank of Montreal and Mariner LLC, also raised holdings by double-digit percentages in Q4, reflecting growing confidence in the company’s market position.

The company recently announced a quarterly dividend of $2.75 per share, payable on October 1, with a 1.4% yield. NewMarket’s latest earnings report highlighted $11.84 per share for Q2, driven by $698.5 million in revenue. The firm maintains a low beta of 0.45 and a 32.25% return on equity, underscoring its defensive characteristics amid market volatility. Institutional ownership now accounts for 61.09% of the float, indicating strong long-term support from professional investors.

A backtested strategy of purchasing the top 500 volume-driven stocks and holding for one day from 2022 to 2025 yielded a 1.98% average daily return, with a total return of 7.61% over 365 days. The approach generated a Sharpe ratio of 0.94, reflecting favorable risk-adjusted performance, though a maximum drawdown of -29.16% highlights its susceptibility to market corrections.