Southern Copper (NYSE:SCCO) Stock Lifted to "Buy" by Wall Street Zen

Key Points

• Wall Street Zen upgraded Southern Copper to “Buy” from “Hold,” but broader analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $156.02.
• Southern Copper opened at $209.07, near its 52-week high, and reported quarterly EPS of $1.99 versus the $1.93 consensus estimate. Revenue rose 40.6% year over year to $4.29 billion, though it fell short of analyst expectations.
• Insiders have recently sold shares, including a director’s $39,751 transaction, while institutional investors own 7.94% of the company.

Southern Copper (NYSE:SCCO - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Other equities research analysts also recently issued research reports about the company. Barclays set a $164.03 target price on Southern Copper and gave the stock an "underweight" rating in a research report on Thursday, July 23rd. UBS Group reaffirmed a "sell" rating and set a $180.00 price target (up from $160.00) on shares of Southern Copper in a research report on Thursday. Morgan Stanley reaffirmed an "underweight" rating and set a $170.00 price target on shares of Southern Copper in a research report on Wednesday. Weiss Ratings upgraded Southern Copper from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday. Finally, CICC Research downgraded shares of Southern Copper to a "market perform" rating in a research report on Sunday, July 26th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and seven have issued a Sell rating to the company. According to MarketBeat, Southern Copper has a consensus rating of "Reduce" and a consensus target price of $156.02.

Southern Copper Stock Up 5.2%

Southern Copper stock opened at $209.07 on Friday. Southern Copper has a 52 week low of $119.25 and a 52 week high of $223.88. The stock has a market cap of $174.44 billion, a price-to-earnings ratio of 30.57, a PEG ratio of 1.75 and a beta of 1.11. The company's 50-day moving average price is $200.13 and its two-hundred day moving average price is $185.79. The company has a current ratio of 5.06, a quick ratio of 4.56 and a debt-to-equity ratio of 0.63.

Southern Copper (NYSE:SCCO - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share 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 business had revenue of $4.29 billion during the quarter, compared to analyst estimates of $4.37 billion. Southern Copper's quarterly revenue was up 40.6% on a year-over-year basis. On average, analysts expect that Southern Copper will post 7.94 EPS for the current fiscal year.

Insider Activity at Southern Copper

In other news, Director Luis Palomino Bonilla sold 202 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $196.79, for a total transaction of $39,751.28. Following the transaction, the director directly owned 1,723 shares of the company's stock, valued at $339,066.65. This represents a 10.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders sold a total of 704 shares of company stock worth $138,077 in the last ninety 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. SHP Wealth Management bought a new stake in shares of Southern Copper in the fourth quarter valued at $25,000. Bell Investment Advisors Inc purchased a new stake in shares of Southern Copper in the 2nd quarter valued at about $26,000. Rakuten Securities Inc. bought a new stake in Southern Copper during the second quarter valued at approximately $28,000. Pin Oak Investment Advisors Inc. purchased a new position in Southern Copper in the second quarter worth $30,000. Finally, Compass Financial Management LLC purchased a new position in shares of Southern Copper during the 2nd quarter valued at about $41,000. 7.94% of the stock is owned by institutional investors.

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.

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