Bank of New York Mellon Corp Buys New Position in Southern Copper Corporation $SCCO

Key Points

• Bank of New York Mellon acquired 7.28 million Southern Copper shares worth approximately $696.6 million, representing about 0.88% of the company. Institutional investors collectively own 7.94% of SCCO.
• Southern Copper reported quarterly EPS of $1.99, beating estimates of $1.93, while revenue rose 40.6% year over year to $4.29 billion. The company also increased its quarterly dividend from $1.00 to $1.10 per share, yielding approximately 2.2% annually.
• Despite the stock trading near $199.45, analysts remain cautious: SCCO has an average “Reduce” rating and a consensus price target of $146.84, with three Buy, five Hold and seven Sell ratings.

Bank of New York Mellon Corp bought a new stake in Southern Copper Corporation (NYSE:SCCO - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 7,278,460 shares of the basic materials company's stock, valued at approximately $696,621,000. Bank of New York Mellon Corp owned approximately 0.88% of Southern Copper as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also made changes to their positions in SCCO. State Street Corp lifted its stake in Southern Copper by 2.4% in the fourth quarter. State Street Corp now owns 2,862,244 shares of the basic materials company's stock valued at $410,646,000 after acquiring an additional 66,268 shares during the last quarter. Fisher Asset Management LLC lifted its stake in Southern Copper by 0.3% in the 4th quarter. Fisher Asset Management LLC now owns 2,536,228 shares of the basic materials company's stock valued at $363,873,000 after purchasing an additional 7,194 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Southern Copper by 8.3% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,181,293 shares of the basic materials company's stock valued at $169,480,000 after purchasing an additional 90,237 shares during the last quarter. Vanguard Group Inc. grew its holdings in Southern Copper by 3.6% during the fourth quarter. Vanguard Group Inc. now owns 983,822 shares of the basic materials company's stock worth $141,149,000 after purchasing an additional 33,804 shares during the period. Finally, Legal & General Group Plc grew its holdings in Southern Copper by 1.5% during the third quarter. Legal & General Group Plc now owns 955,924 shares of the basic materials company's stock worth $116,012,000 after purchasing an additional 14,212 shares during the period. Institutional investors own 7.94% of the company's stock.

Insider Activity at Southern Copper

In related news, Director Bonilla Luis Miguel Palomino sold 202 shares of Southern Copper stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $196.79, for a total transaction of $39,751.28. Following the sale, the director directly owned 1,723 shares of the company's stock, valued at approximately $339,066.65. The trade was a 10.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders have sold a total of 509 shares of company stock valued at $97,753 over the last three months. 0.07% of the stock is currently owned by corporate insiders.

Southern Copper Stock Up 2.5%

Shares of NYSE SCCO opened at $199.45 on Friday. The stock has a market capitalization of $166.41 billion, a P/E ratio of 29.16, a PEG ratio of 1.67 and a beta of 1.11. The stock's fifty day moving average is $181.66 and its 200 day moving average is $182.97. Southern Copper Corporation has a 52 week low of $92.57 and a 52 week high of $223.88. The company has a debt-to-equity ratio of 0.63, a quick ratio of 4.56 and a current ratio of 5.06.

Southern Copper (NYSE:SCCO - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The basic materials company reported $1.99 EPS for the quarter, beating the consensus estimate of $1.93 by $0.06. The company had revenue of $4.29 billion during the quarter, compared to analysts' expectations of $4.37 billion. Southern Copper had a net margin of 35.87% and a return on equity of 49.04%. The firm's revenue was up 40.6% compared to the same quarter last year. Sell-side analysts forecast that Southern Copper Corporation will post 7.61 earnings per share for the current fiscal year.

Southern Copper Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th will be paid a dividend of $1.10 per share. The ex-dividend date of this dividend is Tuesday, August 11th. This is a positive change from Southern Copper's previous quarterly dividend of $1.00. This represents a $4.40 annualized dividend and a yield of 2.2%. Southern Copper's payout ratio is presently 64.33%.

Analyst Ratings Changes

A number of research firms have recently issued reports on SCCO. Scotiabank reaffirmed an "underperform" rating and issued a $138.34 price objective (up from $133.40) on shares of Southern Copper in a research report on Monday, June 15th. Zacks Research downgraded Southern Copper from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. CICC Research cut shares of Southern Copper to a "market perform" rating in a research report on Sunday, July 26th. Barclays set a $164.03 price objective on shares of Southern Copper and gave the company an "underweight" rating in a report on Thursday, July 23rd. Finally, Wall Street Zen cut shares of Southern Copper from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and seven have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $146.84.

Southern Copper 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.

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