Ferguson Wellman Capital Management Inc. Has $17.69 Million Stock Position in Southern Copper Corporation $SCCO

Key Points

• Ferguson Wellman Capital Management increased its Southern Copper stake by 148.2% during the second quarter, ending with 101,514 shares valued at approximately $17.69 million.
• Southern Copper reported quarterly EPS of $1.99, exceeding analyst expectations, while revenue rose 40.6% year over year to $4.29 billion. The company also raised its quarterly dividend to $1.10, equivalent to a 2.1% yield.
• Despite the strong results and a share price near its annual high, analysts remain cautious: the stock has an average “Reduce” rating and a consensus price target of $146.84, well below its reported $211.58 price.

Ferguson Wellman Capital Management Inc. grew its position in shares of Southern Copper Corporation (NYSE:SCCO - Free Report) by 148.2% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 101,514 shares of the basic materials company's stock after purchasing an additional 60,617 shares during the quarter. Ferguson Wellman Capital Management Inc.'s holdings in Southern Copper were worth $17,690,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. SHP Wealth Management acquired a new stake in shares of Southern Copper during the fourth quarter worth $25,000. Bell Investment Advisors Inc bought a new stake in Southern Copper during the second quarter valued at $26,000. Rakuten Securities Inc. bought a new stake in Southern Copper during the second quarter valued at $28,000. Lloyd Advisory Services LLC. acquired a new stake in Southern Copper during the 4th quarter worth about $29,000. Finally, Virtus Advisers LLC acquired a new stake in Southern Copper during the 4th quarter worth about $29,000. Institutional investors and hedge funds own 7.94% of the company's stock.

Southern Copper Stock Down 2.2%

Shares of NYSE SCCO opened at $211.58 on Friday. The stock has a market capitalization of $176.53 billion, a P/E ratio of 30.93, a P/E/G ratio of 1.85 and a beta of 1.11. The company has a 50-day moving average price of $184.67 and a 200-day moving average price of $183.92. Southern Copper Corporation has a 1 year low of $92.94 and a 1 year high of $223.88. 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 posted its earnings results on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share 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 company had revenue of $4.29 billion for the quarter, compared to analyst estimates of $4.37 billion. The company's quarterly revenue was up 40.6% compared to the same quarter last year. On average, equities research analysts forecast that Southern Copper Corporation will post 7.61 EPS for the current fiscal year.

Southern Copper Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were paid a $1.10 dividend. This represents a $4.40 annualized dividend and a dividend yield of 2.1%. This is a boost from Southern Copper's previous quarterly dividend of $1.00. The ex-dividend date of this dividend was Tuesday, August 11th. Southern Copper's dividend payout ratio (DPR) is currently 64.33%.

Wall Street Analyst Weigh In

SCCO has been the topic of a number of recent analyst reports. Citigroup reissued a "positive" rating on shares of Southern Copper in a research note on Wednesday, July 15th. Wells Fargo & Company boosted their price target on Southern Copper from $168.97 to $169.96 and gave the company an "equal weight" rating in a research note on Thursday, July 9th. JPMorgan Chase & Co. raised their price objective on shares of Southern Copper from $125.49 to $129.94 and gave the stock an "underweight" rating in a research report on Wednesday, June 17th. Morgan Stanley boosted their target price on shares of Southern Copper from $144.27 to $156.13 and gave the company an "underweight" rating in a research report on Wednesday, July 8th. Finally, Zacks Research cut shares of Southern Copper from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating, five have given a Hold rating and seven have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $146.84.

Insider Activity at Southern Copper

In other news, Director Bonilla Luis Miguel Palomino sold 202 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $196.79, for a total value of $39,751.28. Following the transaction, the director owned 1,723 shares in the company, valued at $339,066.65. This trade represents a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold 509 shares of company stock valued at $97,753 over the last three months. Corporate insiders own 0.07% of the company's stock.

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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