Ferguson Wellman Capital Management Inc. Increases Position in Southern Copper Corporation $SCCO

Key Points

• Ferguson Wellman Capital Management increased its Southern Copper stake by 5.2% in the third quarter, bringing its holdings to 106,792 shares valued at approximately $21.64 million. Institutional investors and hedge funds collectively own 7.94% of SCCO.
• Southern Copper reported quarterly earnings of $1.99 per share, exceeding estimates, while revenue rose 40.6% year over year to $4.29 billion. The company also raised its quarterly dividend to $1.10 per share, implying a 2.1% annualized yield.
• SCCO recently traded near $206, close to its 52-week high, but analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and an average price target of $146.84. An insider also sold 202 shares, and insiders have sold $138,077 worth of stock over the past three months.

Ferguson Wellman Capital Management Inc. increased its holdings in shares of Southern Copper Corporation (NYSE:SCCO - Free Report) by 5.2% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 106,792 shares of the basic materials company's stock after purchasing an additional 5,278 shares during the quarter. Ferguson Wellman Capital Management Inc.'s holdings in Southern Copper were worth $21,640,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in SCCO. BlackRock Inc. acquired a new position in shares of Southern Copper during the 2nd quarter worth about $1,729,500,000. Bank of America Corp DE bought a new stake in Southern Copper during the second quarter worth about $318,448,000. Legal & General Group Plc bought a new stake in Southern Copper during the second quarter worth about $149,739,000. Capital Research Global Investors acquired a new position in Southern Copper during the fourth quarter valued at approximately $81,039,000. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new position in Southern Copper during the first quarter valued at approximately $85,342,000. 7.94% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Luis Palomino Bonilla sold 202 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $196.79, for a total value of $39,751.28. Following the completion of the sale, the director owned 1,723 shares of the company's stock, valued at approximately $339,066.65. The trade was a 10.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders have sold a total of 704 shares of company stock valued at $138,077 over the last three months. Insiders own 0.07% of the company's stock.

Southern Copper Stock Performance

SCCO traded up $0.55 during trading hours on Monday, reaching $206.09. The company's stock had a trading volume of 271,916 shares, compared to its average volume of 1,550,251. The company's 50-day moving average is $197.58 and its 200-day moving average is $184.49. Southern Copper Corporation has a 52 week low of $119.25 and a 52 week high of $223.88. The firm has a market cap of $171.94 billion, a PE ratio of 30.15, a price-to-earnings-growth ratio of 1.83 and a beta of 1.11. The company has a debt-to-equity ratio of 0.63, a quick ratio of 4.56 and a current ratio of 5.06.

Southern Copper (NYSE:SCCO - Get Free Report) last announced 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. The company had revenue of $4.29 billion for the quarter, compared to analyst estimates of $4.37 billion. Southern Copper had a return on equity of 49.04% and a net margin of 35.87%.The company's revenue for the quarter was up 40.6% on a year-over-year basis. On average, equities analysts forecast that Southern Copper Corporation will post 7.86 EPS for the current year.

Southern Copper Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were issued a dividend of $1.10 per share. This is an increase from Southern Copper's previous quarterly dividend of $1.00. This represents a $4.40 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend was Tuesday, August 11th. Southern Copper's payout ratio is 64.33%.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on SCCO. Citigroup reaffirmed a "positive" rating on shares of Southern Copper in a research report on Wednesday, July 15th. JPMorgan Chase & Co. increased their price objective on Southern Copper from $125.49 to $129.94 and gave the company an "underweight" rating in a report on Wednesday, June 17th. UBS Group reissued 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. Weiss Ratings upgraded shares of Southern Copper from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, July 28th. Finally, Wall Street Zen lowered shares of Southern Copper from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Three 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's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of $146.84.

About Southern Copper

Southern Copper Corp. is an integrated copper producer engaged in the exploration, mining, processing, smelting and refining of copper and other minerals. Its principal products include copper cathodes, copper concentrates, molybdenum, zinc, silver and lead. The company also produces sulfuric acid and other byproducts through its metallurgical operations.

Southern Copper operates major mining and processing assets in Mexico and Peru. Its Mexican operations include the Buenavista del Cobre and La Caridad mining complexes, while its Peruvian operations include the Cuajone and Toquepala mines.

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