Diversify Advisory Services LLC Acquires New Stake in Southern Copper Corporation $SCCO

Key Points

• Diversify Advisory Services LLC acquired 16,988 shares of Southern Copper during the second quarter, valued at approximately $3.05 million. Other institutional investors also initiated positions, while institutions collectively own 7.94% of the company.
• 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 also increased its quarterly dividend to $1.10 per share, producing a 2.3% yield.
• Analyst sentiment remains cautious, with three Buy, five Hold and seven Sell ratings; the stock has an average “Reduce” rating and a consensus price target of $146.84, below its reported $187.81 opening price.

Diversify Advisory Services LLC bought a new stake in Southern Copper Corporation (NYSE:SCCO - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 16,988 shares of the basic materials company's stock, valued at approximately $3,046,000.

A number of other institutional investors have also recently made changes to their positions in SCCO. Gables Capital Management Inc. bought a new position in shares of Southern Copper during the 2nd quarter worth $640,000. Oxbow Advisors LLC bought a new stake in Southern Copper in the 2nd quarter valued at about $3,602,000. Wealthfront Advisers LLC purchased a new stake in Southern Copper during the second quarter valued at about $361,000. Meeder Advisory Services Inc. purchased a new stake in Southern Copper during the second quarter valued at about $510,000. Finally, Meeder Asset Management Inc. bought a new position in Southern Copper during the second quarter worth about $47,000. Hedge funds and other institutional investors own 7.94% of the company's stock.

Insider Transactions at Southern Copper

In related news, Director Bonilla Luis Miguel Palomino sold 202 shares of the business'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 completion of the transaction, the director directly owned 1,723 shares in the company, valued at $339,066.65. The trade was a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 711 shares of company stock worth $133,247 over the last three months. 0.07% of the stock is currently owned by company insiders.

Southern Copper Stock Down 2.2%

SCCO stock opened at $187.81 on Wednesday. The stock has a 50-day simple moving average of $180.68 and a two-hundred day simple moving average of $182.94. Southern Copper Corporation has a twelve month low of $92.57 and a twelve month high of $223.88. The firm has a market capitalization of $156.70 billion, a PE ratio of 27.46, a PEG ratio of 1.58 and a beta of 1.11. The company has a quick ratio of 4.56, a current ratio of 5.06 and a debt-to-equity ratio of 0.63.

Southern Copper (NYSE:SCCO - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $4.37 billion. The firm's revenue was up 40.6% on a year-over-year basis. On average, equities analysts predict that Southern Copper Corporation will post 7.61 EPS for the current fiscal year.

Southern Copper Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Tuesday, August 11th will be paid a dividend of $1.10 per share. 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 2.3%. The ex-dividend date of this dividend is Tuesday, August 11th. Southern Copper's dividend payout ratio is 64.33%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on SCCO. UBS Group reiterated 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. Wells Fargo & Company raised their price objective on shares of Southern Copper from $168.97 to $169.96 and gave the stock an "equal weight" rating in a report on Thursday, July 9th. Morgan Stanley lifted their price objective on shares of Southern Copper from $144.27 to $156.13 and gave the company an "underweight" rating in a research note on Wednesday, July 8th. Zacks Research cut shares of Southern Copper from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. Finally, Scotiabank restated an "underperform" rating and set a $138.34 target price (up from $133.40) on shares of Southern Copper in a research report on Monday, June 15th. Three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and seven have assigned a Sell rating to the company. Based on data from MarketBeat.com, Southern Copper presently has an average rating of "Reduce" and an average price target 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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