D.B. Root & Company LLC Makes New Investment in Southern Copper Corporation $SCCO

Key Points

• D.B. Root & Company bought 6,802 shares of Southern Copper in the second quarter, valued at approximately $1.19 million. Other major institutions, including BlackRock and Bank of New York Mellon, also initiated or increased positions.
• Southern Copper reported quarterly EPS of $1.99, exceeding estimates of $1.93, while revenue rose 40.6% year over year to $4.29 billion. The company raised its quarterly dividend to $1.10, implying a 2.0% annualized yield.
• Analysts remain broadly cautious, with the stock carrying a consensus “Reduce” rating and an average price target of $146.84, well below its reported $216.30 share price.

D.B. Root & Company LLC purchased a new stake in Southern Copper Corporation (NYSE:SCCO - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 6,802 shares of the basic materials company's stock, valued at approximately $1,185,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of SCCO. BlackRock Inc. purchased a new stake in Southern Copper during the second quarter worth $1,729,500,000. Bank of New York Mellon Corp bought a new position in shares of Southern Copper in the 2nd quarter worth $696,621,000. State Street Corp lifted its stake in shares of Southern Copper by 2.4% during the 4th quarter. State Street Corp now owns 2,862,244 shares of the basic materials company's stock worth $410,646,000 after purchasing an additional 66,268 shares during the last quarter. Fisher Asset Management LLC grew its stake in Southern Copper by 0.3% in the fourth 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. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Southern Copper by 8.3% in the fourth 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 worth $169,480,000 after purchasing an additional 90,237 shares in the last quarter. 7.94% of the stock is currently owned by institutional investors.

Southern Copper Stock Up 0.1%

SCCO stock opened at $216.30 on Monday. The company has a market capitalization of $180.47 billion, a P/E ratio of 31.62, a price-to-earnings-growth ratio of 1.85 and a beta of 1.11. Southern Copper Corporation has a 12 month low of $92.94 and a 12 month high of $223.88. The firm's fifty day simple moving average is $182.23 and its 200-day simple moving average is $183.16. The company has a debt-to-equity ratio of 0.63, a current ratio of 5.06 and a quick ratio of 4.56.

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

Southern Copper Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th will be issued a $1.10 dividend. This is a boost 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 annualized dividend and a dividend yield of 2.0%. Southern Copper's payout ratio is presently 64.33%.

Insider Activity at Southern Copper

In related news, Director Bonilla Luis Miguel Palomino sold 202 shares of the firm's stock in a transaction dated Wednesday, August 5th. The stock was 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 $339,066.65. This trade represents a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders sold a total of 509 shares of company stock valued at $97,753 in the last quarter. 0.07% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts have recently weighed in on SCCO shares. JPMorgan Chase & Co. raised their price target on shares of Southern Copper from $125.49 to $129.94 and gave the company an "underweight" rating in a report on Wednesday, June 17th. UBS Group restated a "sell" rating and issued a $158.10 target price (up from $143.28) on shares of Southern Copper in a research note on Tuesday, June 30th. Scotiabank reaffirmed an "underperform" rating and set a $138.34 price target (up from $133.40) on shares of Southern Copper in a research report on Monday, June 15th. CICC Research lowered Southern Copper to a "market perform" rating in a report on Sunday, July 26th. Finally, Wells Fargo & Company boosted their target price on Southern Copper from $168.97 to $169.96 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and seven have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $146.84.

About Southern Copper

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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