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

Key Points

• Analysts have a “Reduce” consensus rating on Southern Copper: seven of 13 analysts recommend selling, four say hold and two say buy. The average 12-month price target is $159.26.
• Southern Copper’s latest quarterly results beat expectations, with EPS of $2.13 versus estimates of $2.01 and revenue of $4.70 billion versus $4.49 billion.
• The company raised its quarterly dividend to $1.30 per share from $1.10, equivalent to an annualized $5.20 and a 3.0% yield.

Shares of Southern Copper Corporation (NYSE:SCCO - Get Free Report) have earned a consensus recommendation of "Reduce" from the thirteen analysts that are covering the firm, MarketBeat Ratings reports. Seven investment analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and two have issued a buy recommendation on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $159.26.

Several research analysts have commented on SCCO shares. CICC Research cut shares of Southern Copper to a "market perform" rating in a research report on Sunday, July 26th. Zacks Research downgraded Southern Copper from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 7th. Citigroup reissued a "positive" rating on shares of Southern Copper in a report on Wednesday, July 15th. Wall Street Zen raised Southern Copper from a "hold" rating to a "buy" rating in a report on Saturday, October 10th. Finally, UBS Group restated a "sell" rating and issued a $178.11 target price (up from $158.32) on shares of Southern Copper in a research report on Thursday, October 8th.

Institutional Investors Weigh In On Southern Copper

Hedge funds and other institutional investors have recently modified their holdings of the stock. Bell Investment Advisors Inc bought a new stake in Southern Copper during the second quarter worth approximately $26,000. Rakuten Securities Inc. bought a new position in Southern Copper during the 2nd quarter valued at $28,000. Pin Oak Investment Advisors Inc. acquired a new position in shares of Southern Copper during the 2nd quarter valued at $30,000. Compass Financial Management LLC acquired a new position in shares of Southern Copper during the 2nd quarter valued at $41,000. Finally, Caitlin John LLC acquired a new position in shares of Southern Copper during the 2nd quarter valued at $43,000. 7.94% of the stock is currently owned by institutional investors.

Southern Copper Stock Down 3.4%

NYSE:SCCO opened at $173.33 on Wednesday. The firm has a market capitalization of $144.62 billion, a PE ratio of 22.69, a price-to-earnings-growth ratio of 1.66 and a beta of 1.15. The stock has a 50 day moving average of $197.31 and a 200-day moving average of $185.56. Southern Copper has a 52 week low of $119.25 and a 52 week high of $223.88. The company has a current ratio of 4.31, a quick ratio of 4.56 and a debt-to-equity ratio of 0.59.

Southern Copper (NYSE:SCCO - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The basic materials company reported $2.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.01 by $0.12. Southern Copper had a return on equity of 51.61% and a net margin of 37.16%. The business had revenue of $4.70 billion during the quarter, compared to analyst estimates of $4.49 billion. During the same quarter in the previous year, the firm posted $1.34 EPS. Analysts predict that Southern Copper will post 8.03 EPS for the current year.

Southern Copper Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Tuesday, November 3rd will be paid a $1.30 dividend. The ex-dividend date of this dividend is Tuesday, November 3rd. This is a positive change from Southern Copper's previous quarterly dividend of $1.10. This represents a $5.20 annualized dividend and a dividend yield of 3.0%. Southern Copper's dividend payout ratio (DPR) is currently 57.59%.

Southern Copper Company Profile

Southern Copper Corporation NYSE: SCCO is a mining and metals company engaged primarily in the exploration, development, extraction, processing and production of copper. The company also produces molybdenum, zinc, silver and lead, along with related byproducts. Its operations include open-pit mines, underground mines, concentrators, smelters, refineries and other processing facilities.

Southern Copper operates mainly in Peru and Mexico. Its Peruvian assets include the Toquepala and Cuajone copper mines, while its Mexican operations include the Buenavista del Cobre and La Caridad mines, as well as associated processing and infrastructure facilities.

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