Convergence Investment Partners LLC Grows Position in Southern Copper Corporation $SCCO

Key Points

• Convergence Investment Partners LLC boosted its Southern Copper stake by 66% in the first quarter, buying 9,060 additional shares and bringing its total holding to 22,793 shares worth about $3.9 million.
• Southern Copper declared a higher quarterly dividend of $1.10 per share, up from $1.00, implying a $4.40 annualized payout and a 2.5% yield. The ex-dividend date and stock split date are both set for August 11.
• The stock was trading at $175.20, up 1.6%, while analysts remained mixed overall: the consensus rating is “Reduce” with an average price target of $148.10, despite some recent upgrades and target increases.

Convergence Investment Partners LLC grew its holdings in Southern Copper Corporation (NYSE:SCCO - Free Report) by 66.0% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 22,793 shares of the basic materials company's stock after buying an additional 9,060 shares during the period. Convergence Investment Partners LLC's holdings in Southern Copper were worth $3,922,000 as of its most recent filing with the Securities & Exchange Commission.

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

Southern Copper Stock Up 1.6%

Shares of SCCO opened at $175.20 on Tuesday. The firm has a market cap of $144.73 billion, a P/E ratio of 28.96, a price-to-earnings-growth ratio of 1.47 and a beta of 1.11. Southern Copper Corporation has a 12-month low of $88.73 and a 12-month high of $223.88. The company's 50-day moving average price is $180.83 and its 200 day moving average price is $182.47. The company has a current ratio of 4.38, a quick ratio of 3.89 and a debt-to-equity ratio of 0.57.

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

Southern Copper Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th will be paid a $1.10 dividend. This is a positive change from Southern Copper's previous quarterly dividend of $1.00. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 2.5%. Southern Copper's payout ratio is presently 66.12%.

Insider Activity at Southern Copper

In other news, Director Bonilla Luis Miguel Palomino sold 200 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $177.82, for a total value of $35,564.00. Following the transaction, the director directly owned 1,807 shares in the company, valued at approximately $321,320.74. This represents a 9.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In the last quarter, insiders have sold 404 shares of company stock valued at $74,108. Corporate insiders own 0.07% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Wells Fargo & Company upped their price objective on shares of Southern Copper from $171.00 to $172.00 and gave the company an "equal weight" rating in a report on Thursday, July 9th. Barclays reaffirmed an "underweight" rating and set a $160.00 target price (up from $148.00) on shares of Southern Copper in a research note on Wednesday, July 15th. Zacks Research upgraded shares of Southern Copper from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 9th. The Goldman Sachs Group raised shares of Southern Copper from a "sell" rating to a "neutral" rating and set a $178.00 price target on the stock in a research report on Friday, April 10th. Finally, JPMorgan Chase & Co. upped their price objective on Southern Copper from $127.00 to $131.50 and gave the company an "underweight" rating in a report on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and seven have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $148.10.

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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