Southern Copper (NYSE:SCCO) Reaches New 52-Week High – Still a Buy?

Southern Copper Corporation (NYSE:SCCO)’s share price reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $184.74 and last traded at $183.7450, with a volume of 933500 shares changing hands. The stock had previously closed at $180.95.

Wall Street Analyst Weigh In

Several analysts have weighed in on SCCO shares. Itau BBA Securities cut Southern Copper from a “market perform” rating to an “underperform” rating and set a $126.00 price objective for the company. in a report on Monday, December 22nd. Wall Street Zen upgraded Southern Copper from a “hold” rating to a “buy” rating in a report on Sunday. HSBC reissued a “hold” rating and issued a $118.00 target price (up previously from $105.00) on shares of Southern Copper in a research note on Friday, October 17th. JPMorgan Chase & Co. boosted their target price on Southern Copper from $114.50 to $119.50 and gave the stock a “neutral” rating in a research report on Thursday, December 18th. Finally, Morgan Stanley set a $138.00 price target on shares of Southern Copper and gave the company an “underweight” rating in a research report on Monday, December 15th. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $129.05.

Southern Copper Stock Performance

The company has a debt-to-equity ratio of 0.64, a current ratio of 4.52 and a quick ratio of 3.91. The stock has a 50-day moving average price of $145.55 and a 200 day moving average price of $123.17. The company has a market cap of $151.31 billion, a price-to-earnings ratio of 39.06, a price-to-earnings-growth ratio of 1.52 and a beta of 1.06.

Southern Copper (NYSE:SCCO) last posted its earnings results on Friday, October 31st. The basic materials company reported $1.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.26 by $0.09. The business had revenue of $3.38 billion during the quarter, compared to analysts’ expectations of $3.05 billion. Southern Copper had a return on equity of 38.74% and a net margin of 30.98%. As a group, analysts anticipate that Southern Copper Corporation will post 4.66 EPS for the current fiscal year.

Southern Copper Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 28th. Investors of record on Wednesday, November 12th were given a $0.90 dividend. This represents a $3.60 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Wednesday, November 12th. Southern Copper’s payout ratio is currently 75.47%.

Insiders Place Their Bets

In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 400 shares of the stock in a transaction dated Wednesday, December 3rd. The stock was sold at an average price of $139.00, for a total transaction of $55,600.00. Following the completion of the transaction, the director owned 1,265 shares in the company, valued at approximately $175,835. This represents a 24.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Over the last three months, insiders have sold 948 shares of company stock valued at $131,130. 0.07% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Hopwood Financial Services Inc. acquired a new stake in Southern Copper in the 3rd quarter valued at approximately $25,000. MJT & Associates Financial Advisory Group Inc. boosted its position in Southern Copper by 65.1% during the 3rd quarter. MJT & Associates Financial Advisory Group Inc. now owns 213 shares of the basic materials company’s stock worth $26,000 after acquiring an additional 84 shares during the last quarter. Tobam bought a new position in shares of Southern Copper during the 2nd quarter worth approximately $29,000. United Community Bank acquired a new stake in shares of Southern Copper in the third quarter valued at approximately $30,000. Finally, Caitlin John LLC acquired a new stake in shares of Southern Copper in the third quarter valued at approximately $30,000. 7.94% of the stock is owned by institutional investors and hedge funds.

Southern Copper Company Profile

Southern Copper Corporation (NYSE: SCCO) is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.

Southern Copper’s operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.