Newmont Shares Plunge Over 12% After Sharp Gold, Silver Profit-Taking; Price Target Raised
Newmont shares fell 5.6% on Dec. 29 after spot gold corrected sharply from record highs, then slid another 6.9% intraday as silver plunged 7.6% to $71.32/oz and gold dropped 4.3% to $4,354.20/oz on profit-taking. Raymond James raised its price target to $111 with an “outperform” rating, noting a 16x earnings multiple and 1% yield.
1. Newmont Shares Slide on Metals Correction
Newmont Corporation shares fell sharply on December 29, declining over 5% after a pullback in gold prices following last week’s record highs. The stock’s intraday range showed volatility as investors booked profits on the year’s strong rally, marking the largest single-session drop since October. This move followed a broader downturn in precious metals, where spot gold prices retraced more than 4% from their peak.
2. Year-to-Date Rally Still Intact
Despite the recent sell-off, Newmont’s stock has gained approximately 185% year-to-date, outperforming the S&P 500 and many of its mining peers. The company’s market capitalization stands around $115 billion, and shares trade at roughly 16 times forward earnings. Newmont also maintains a modest dividend yield near 1%, underpinned by free cash flow generation from its global asset base.
3. Analyst Upgrades and Price Target Revision
Earlier in the session, investment bank Raymond James lifted its price target on Newmont to $111, representing a potential upside of more than 10% from current levels, and maintained an 'outperform' rating. The upgrade was driven by revised fourth-quarter forecasts for gold production and improved cost controls, which are expected to bolster profit margins in 2026.
4. Outlook for 2026 and Investor Considerations
Looking ahead, strategists highlight that easing monetary policy and sustained demand for inflation hedges could support gold prices near current levels. Newmont’s strong balance sheet—with net debt-to-EBITDA below 1.0x—positions it to invest in high-return projects and pursue selective acquisitions. Investors should weigh the near-term volatility against the company’s long-term growth prospects and ability to generate stable cash flow.