Southern Copper Corporation (NYSE:SCCO) Stock Rated “Reduce” by Sell-Side Analysts

Southern Copper Corporation (NYSE:SCCO) has been assigned an average rating of “Reduce” from the fourteen analysts that are currently covering the firm, Marketbeat reports. Seven research analysts have rated the stock with a sell rating, five have issued a hold rating and two have issued a buy rating on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $156.02.

SCCO has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. upped their target price on Southern Copper from $125.49 to $129.94 and gave the stock an “underweight” rating in a research report on Wednesday, June 17th. CICC Research cut shares of Southern Copper to a “market perform” rating in a research note on Sunday, July 26th. UBS Group reaffirmed a “sell” rating and set a $180.00 price objective (up from $160.00) on shares of Southern Copper in a report on Thursday. Zacks Research lowered shares of Southern Copper from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 7th. Finally, Wells Fargo & Company lifted their target price on shares of Southern Copper from $172.00 to $190.00 and gave the stock an “equal weight” rating in a report on Tuesday.

Insider Activity at Southern Copper

In other news, Director Luis Palomino Bonilla sold 202 shares of Southern Copper stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $196.79, for a total value of $39,751.28. Following the transaction, the director directly owned 1,723 shares in the company, valued at approximately $339,066.65. The trade was a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders sold 704 shares of company stock valued at $138,077 in the last 90 days. Insiders own 0.07% of the company’s stock.

Institutional Trading of Southern Copper

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SCCO. BlackRock Inc. acquired a new stake in Southern Copper in the 2nd quarter worth $1,729,500,000. Bank of America Corp DE acquired a new position in shares of Southern Copper during the second quarter valued at about $318,448,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Southern Copper by 2.2% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,290,648 shares of the basic materials company’s stock valued at $224,908,000 after buying an additional 27,744 shares during the period. Bollard Group LLC lifted its stake in shares of Southern Copper by 14.0% in the first quarter. Bollard Group LLC now owns 861,950 shares of the basic materials company’s stock valued at $148,307,000 after buying an additional 105,763 shares during the period. Finally, Legal & General Group Plc acquired a new stake in Southern Copper during the second quarter worth about $149,739,000. Institutional investors and hedge funds own 7.94% of the company’s stock.

Southern Copper Price Performance

NYSE SCCO opened at $209.07 on Friday. Southern Copper has a fifty-two week low of $119.25 and a fifty-two week high of $223.88. The stock’s 50-day moving average is $200.13 and its two-hundred day moving average is $185.79. The firm has a market cap of $174.44 billion, a P/E ratio of 30.57, a price-to-earnings-growth ratio of 1.75 and a beta of 1.11. The company has a debt-to-equity ratio of 0.63, a current ratio of 5.06 and a quick ratio of 4.56.

Southern Copper (NYSE:SCCO) last released its quarterly earnings results on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.93 by $0.06. Southern Copper had a return on equity of 49.04% and a net margin of 35.87%. The company had revenue of $4.29 billion during the quarter, compared to the consensus estimate of $4.37 billion. The company’s revenue for the quarter was up 40.6% on a year-over-year basis. On average, analysts anticipate that Southern Copper will post 7.94 earnings per share for the current fiscal year.

Southern Copper Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were given a $1.10 dividend. This is an increase from Southern Copper’s previous quarterly dividend of $1.00. This represents a $4.40 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Tuesday, August 11th. Southern Copper’s dividend payout ratio (DPR) is 64.33%.

About Southern Copper

Southern Copper Corp. is an integrated copper producer engaged in the exploration, mining, processing, smelting and refining of copper and other minerals. Its principal products include copper cathodes, copper concentrates, molybdenum, zinc, silver and lead. The company also produces sulfuric acid and other byproducts through its metallurgical operations.

Southern Copper operates major mining and processing assets in Mexico and Peru. Its Mexican operations include the Buenavista del Cobre and La Caridad mining complexes, while its Peruvian operations include the Cuajone and Toquepala mines.