Shares of Eldorado Gold Corporation (NYSE: EGO) plummeted by 5.67% in pre-market trading on Tuesday, following the company's announcement of a normal course issuer bid (NCIB) to repurchase up to 350,000 of its common shares, representing approximately 0.17% of its total outstanding shares.

While share buybacks are generally viewed as a positive sign by investors, indicating that a company's management believes its stock is undervalued, Eldorado's relatively small NCIB appears to have disappointed some market participants who were expecting a more significant repurchase program.

Analysts suggest that the modest size of the buyback could be interpreted as a signal that the company's management has limited growth opportunities in the near term or that there are concerns about the company's operating environment and capital allocation strategy. Some investors may have preferred to see the company allocate its cash reserves towards growth initiatives or returning cash to shareholders through dividends, rather than a modest share repurchase program.