Wells Fargo & Company Issues Positive Forecast for Southern Copper (NYSE:SCCO) Stock Price

Key Points

• Wells Fargo raised Southern Copper’s price target from $172 to $190 while maintaining an “equal weight” rating; the target still implied 7.18% downside from the prior close.
• Analyst sentiment remains cautious overall, with an average “Reduce” rating and a consensus price target of $148.20, despite Southern Copper shares opening at $204.69.
• Southern Copper beat quarterly EPS expectations ($1.99 versus $1.93) and reported 40.6% year-over-year revenue growth, while insiders sold 704 shares worth approximately $138,077 over the past quarter.

Southern Copper (NYSE:SCCO - Get Free Report) had its price target lifted by stock analysts at Wells Fargo & Company from $172.00 to $190.00 in a report released on Tuesday, Benzinga reports. The firm presently has an "equal weight" rating on the basic materials company's stock. Wells Fargo & Company's price target indicates a potential downside of 7.18% from the company's previous close.

Other research analysts have also recently issued research reports about the company. Zacks Research cut Southern Copper from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 7th. Barclays set a $164.03 price objective on Southern Copper and gave the stock an "underweight" rating in a report on Thursday, July 23rd. CICC Research cut shares of Southern Copper to a "market perform" rating in a report on Sunday, July 26th. Morgan Stanley upped their target price on shares of Southern Copper from $144.27 to $156.13 and gave the stock an "underweight" rating in a research report on Wednesday, July 8th. Finally, Scotiabank reiterated an "underperform" rating and issued a $138.34 price target (up from $133.40) on shares of Southern Copper in a research note on Monday, June 15th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and seven have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $148.20.

Southern Copper Stock Performance

Shares of SCCO stock opened at $204.69 on Tuesday. The stock has a fifty day moving average of $198.15 and a 200 day moving average of $184.70. Southern Copper has a 52 week low of $119.25 and a 52 week high of $223.88. The firm has a market capitalization of $170.78 billion, a price-to-earnings ratio of 30.14, a PEG ratio of 1.83 and a beta of 1.11. The company has a quick ratio of 4.56, a current ratio of 5.06 and a debt-to-equity ratio of 0.63.

Southern Copper (NYSE:SCCO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.93 by $0.06. Southern Copper had a net margin of 35.87% and a return on equity of 49.04%. The business had revenue of $4.29 billion for the quarter, compared to the consensus estimate of $4.37 billion. The firm's revenue was up 40.6% on a year-over-year basis. As a group, research analysts expect that Southern Copper will post 7.86 earnings per share for the current year.

Insider Buying and Selling

In other Southern Copper news, Director Luis Palomino Bonilla sold 202 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $196.79, for a total transaction of $39,751.28. Following the completion of the sale, the director directly owned 1,723 shares in the company, valued at approximately $339,066.65. This trade represents a 10.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last quarter, insiders have sold 704 shares of company stock worth $138,077. Corporate insiders own 0.07% of the company's stock.

Hedge Funds Weigh In On Southern Copper

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. SHP Wealth Management purchased a new position in shares of Southern Copper in the fourth quarter worth $25,000. Bell Investment Advisors Inc purchased a new position in Southern Copper in the 2nd quarter worth about $26,000. Rakuten Securities Inc. purchased a new position in Southern Copper in the 2nd quarter worth about $28,000. Pin Oak Investment Advisors Inc. bought a new position in Southern Copper during the 2nd quarter valued at about $30,000. Finally, Compass Financial Management LLC bought a new position in 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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