Bank of Nova Scotia Takes Position in Southern Copper Corporation $SCCO

Key Points

• Bank of Nova Scotia acquired 7,229 Southern Copper shares during the first quarter, valued at approximately $1.24 million. Institutional investors collectively own 7.94% of SCCO.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $148.60; seven analysts rate the stock a Sell, compared with four Holds, three Buys and one Strong Buy.
• Southern Copper reported quarterly EPS of $2.01, exceeding estimates, while revenue rose 40.6% year over year. The company also raised its quarterly dividend to $1.10 per share, producing a 2.5% annualized yield.

Bank of Nova Scotia bought a new position in shares of Southern Copper Corporation (NYSE:SCCO - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 7,229 shares of the basic materials company's stock, valued at approximately $1,244,000.

Several other institutional investors and hedge funds have also bought and sold shares of SCCO. Royal Bank of Canada increased its holdings in shares of Southern Copper by 42.1% in the first quarter. Royal Bank of Canada now owns 44,879 shares of the basic materials company's stock worth $4,194,000 after purchasing an additional 13,293 shares during the period. Empowered Funds LLC grew its position in Southern Copper by 17.9% during the first quarter. Empowered Funds LLC now owns 6,705 shares of the basic materials company's stock worth $627,000 after buying an additional 1,020 shares in the last quarter. Focus Partners Wealth increased its stake in Southern Copper by 21.5% in the 1st quarter. Focus Partners Wealth now owns 5,944 shares of the basic materials company's stock worth $556,000 after acquiring an additional 1,052 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of Southern Copper by 37.4% in the 2nd quarter. First Trust Advisors LP now owns 73,379 shares of the basic materials company's stock valued at $7,424,000 after acquiring an additional 19,957 shares in the last quarter. Finally, Baird Financial Group Inc. boosted its position in shares of Southern Copper by 17.7% during the 2nd quarter. Baird Financial Group Inc. now owns 4,864 shares of the basic materials company's stock valued at $492,000 after acquiring an additional 731 shares during the last quarter. 7.94% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently weighed in on SCCO. CICC Research cut shares of Southern Copper to a "market perform" rating in a research report on Sunday. Wells Fargo & Company boosted their price target on shares of Southern Copper from $171.00 to $172.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. UBS Group restated a "sell" rating and set a $160.00 price objective (up from $145.00) on shares of Southern Copper in a research report on Tuesday, June 30th. Scotiabank reaffirmed an "underperform" rating and set a $140.00 price objective (up from $135.00) on shares of Southern Copper in a report on Monday, June 15th. Finally, Citigroup reissued a "positive" rating on shares of Southern Copper in a research note on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have assigned a Hold rating and seven have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $148.60.

Insider Transactions at Southern Copper

In other news, Director Bonilla Luis Miguel Palomino sold 200 shares of the firm's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $177.82, for a total transaction of $35,564.00. Following the transaction, the director directly owned 1,807 shares of the company's stock, valued at approximately $321,320.74. This trade represents a 9.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have sold 504 shares of company stock worth $92,008 in the last ninety days. Corporate insiders own 0.07% of the company's stock.

Southern Copper Trading Down 2.1%

Shares of SCCO opened at $175.20 on Thursday. Southern Copper Corporation has a fifty-two week low of $88.73 and a fifty-two week high of $223.88. The firm has a market cap of $144.72 billion, a price-to-earnings ratio of 25.61, a PEG ratio of 1.54 and a beta of 1.11. The firm has a 50 day moving average price of $181.13 and a 200-day moving average price of $184.02. The company has a debt-to-equity ratio of 0.57, a quick ratio of 3.89 and a current ratio of 4.38.

Shares of Southern Copper are going to split on Tuesday, August 11th. The 1.012-1 split was recently announced. The newly issued shares will be distributed to shareholders after the market closes on Monday, August 10th.

Southern Copper (NYSE:SCCO - Get Free Report) last released its earnings results on Wednesday, July 22nd. The basic materials company reported $2.01 EPS for the quarter, beating the consensus estimate of $1.95 by $0.06. The company had revenue of $4.29 billion for the quarter, compared to analyst estimates of $4.37 billion. Southern Copper had a net margin of 35.87% and a return on equity of 50.74%. The business's quarterly revenue was up 40.6% on a year-over-year basis. As a group, equities research analysts forecast that Southern Copper Corporation will post 7.63 earnings per share for the current year.

Southern Copper Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th will be given a dividend of $1.10 per share. The ex-dividend date 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 2.5%. Southern Copper's dividend payout ratio (DPR) is currently 58.48%.

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.

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