Capital Research Global Investors Acquires Shares of 564,852 Southern Copper Corporation $SCCO

Key Points

• Capital Research Global Investors disclosed a new stake in Southern Copper, buying 564,852 shares valued at about $81.0 million in the fourth quarter. The position represented roughly 0.07% of the company.
• Wall Street sentiment on SCCO remains cautious, with analysts giving a consensus rating of "Reduce" and an average price target of $145.14. Recent calls included several underweight/underperform ratings, despite a few hold and buy ratings.
• Southern Copper reported better-than-expected earnings for the latest quarter, posting $1.92 EPS on $4.25 billion in revenue, and it paid a quarterly dividend of $1.00 per share for a 2.3% annualized yield.

Capital Research Global Investors acquired a new stake in shares of Southern Copper Corporation (NYSE:SCCO - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 564,852 shares of the basic materials company's stock, valued at approximately $81,039,000. Capital Research Global Investors owned 0.07% of Southern Copper at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. Lloyd Advisory Services LLC. bought a new position in Southern Copper during the fourth quarter valued at $29,000. Godfrey Financial Associates Inc. bought a new position in Southern Copper during the fourth quarter valued at $30,000. Hopwood Financial Services Inc. bought a new position in Southern Copper during the third quarter valued at $25,000. IFP Advisors Inc grew its holdings in Southern Copper by 233.3% during the fourth quarter. IFP Advisors Inc now owns 230 shares of the basic materials company's stock valued at $33,000 after purchasing an additional 161 shares during the period. Finally, Caitlin John LLC bought a new position in Southern Copper during the third quarter valued at $30,000. 7.94% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on SCCO. Barclays initiated coverage on Southern Copper in a report on Thursday, May 21st. They set an "underweight" rating and a $148.00 price objective for the company. Morgan Stanley raised their price target on Southern Copper from $155.00 to $160.00 and gave the stock an "underweight" rating in a report on Thursday, April 9th. Bank of America lowered Southern Copper from a "neutral" rating to an "underperform" rating and raised their price target for the stock from $162.00 to $175.00 in a report on Thursday, February 26th. Scotiabank reaffirmed an "underperform" rating and issued a $135.00 price target (up from $133.00) on shares of Southern Copper in a report on Friday, May 15th. Finally, Wall Street Zen lowered Southern Copper from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and eight have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $145.14.

Insider Transactions at Southern Copper

In related news, Director Bonilla Luis Miguel Palomino sold 200 shares of Southern Copper stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $177.82, for a total transaction of $35,564.00. Following the completion of the sale, the director 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders sold a total of 604 shares of company stock worth $109,136 over the last three months. 0.07% of the stock is currently owned by company insiders.

Southern Copper Price Performance

Southern Copper stock opened at $170.51 on Tuesday. Southern Copper Corporation has a one year low of $88.73 and a one year high of $223.88. The business has a fifty day moving average price of $182.51 and a 200-day moving average price of $173.99. The company has a debt-to-equity ratio of 0.57, a current ratio of 4.38 and a quick ratio of 3.89. The firm has a market capitalization of $139.66 billion, a P/E ratio of 28.18, a PEG ratio of 1.63 and a beta of 1.09.

Southern Copper (NYSE:SCCO - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The basic materials company reported $1.92 EPS for the quarter, topping analysts' consensus estimates of $1.88 by $0.04. The firm had revenue of $4.25 billion during the quarter, compared to analyst estimates of $3.96 billion. Southern Copper had a return on equity of 45.63% and a net margin of 34.13%. As a group, equities research analysts forecast that Southern Copper Corporation will post 7.25 EPS for the current year.

Southern Copper Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Wednesday, May 13th were paid a dividend of $1.00 per share. The ex-dividend date of this dividend was Wednesday, May 13th. This represents a $4.00 annualized dividend and a yield of 2.3%. Southern Copper's dividend payout ratio (DPR) is currently 66.12%.

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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