Scotiabank Downgrades Newmont's Outlook to Sector Perform

In a recent report, Scotiabank downgraded Newmont's outlook from Sector Outperform to Sector Perform. Despite this adjustment, institutional ownership has increased, indicating some level of confidence among funds regarding the company's prospects.

Date: 27-10-2024

AI Rating: 5

The recent downgrade of Newmont's outlook by Scotiabank from Sector Outperform to Sector Perform may negatively influence the stock price, as analysts' ratings often shape investor sentiment. Despite this downgrade, the report highlights a positive trend in institutional ownership, with 1,875 funds or institutions reporting positions in Newmont, which is an increase of 34 owners or 1.85% in the last quarter. The average portfolio weight of these funds is 0.44%, reflecting a 15.57% increase.

The total shares owned by institutions have also increased by 5.86% over the past three months, indicating a total of 930,250K shares. This uptick in institutional ownership can provide a support base for Newmont’s stock price, as funds may seek to maintain their positions in anticipation of future performance improvements, despite the recent downgrade.

Highlighting the actions of several key institutional shareholders, we see notable increases: Van Eck Associates raised its holdings from 49,629K shares to 50,918K shares, marking an addition of 2.53%. Similarly, the GDX - VanEck Vectors Gold Miners ETF raised its stake by 1.74%, now holding 43,624K shares. Other funds such as VTSMX and VFINX have also increased their allocations, reinforcing a generally positive sentiment among institutional investors.

The mixed indicators from the report leave investors with caution. The downgrade reflects some negative sentiment about Newmont’s immediate prospects, yet the notable increase in institutional ownership suggests confidence in a longer-term recovery or growth strategy. As such, the reactions of the market players will be crucial in determining the stock’s future trajectory.

Stocks: NEM