Handelsbanken Fonder AB Trims Holdings in Southern Copper Corporation $SCCO

Key Points

• Handelsbanken Fonder cut its Southern Copper stake by 39.3% in the second quarter, selling 31,763 shares and retaining 48,976 shares valued at approximately $8.5 million.
• Southern Copper reported quarterly EPS of $1.99, beating estimates, while revenue rose 40.6% year over year to $4.29 billion. The company also increased its quarterly dividend from $1.00 to $1.10 per share, implying a 2.3% annual yield.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and average price target of $146.84, well below the reported share price of $187.95.

Handelsbanken Fonder AB lowered its stake in shares of Southern Copper Corporation (NYSE:SCCO - Free Report) by 39.3% during the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 48,976 shares of the basic materials company's stock after selling 31,763 shares during the period. Handelsbanken Fonder AB's holdings in Southern Copper were worth $8,535,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in the stock. SHP Wealth Management purchased a new position in shares of Southern Copper during the 4th quarter worth $25,000. Lloyd Advisory Services LLC. purchased a new stake in shares of Southern Copper in the fourth quarter valued at about $29,000. Virtus Advisers LLC acquired a new stake in Southern Copper during the fourth quarter worth about $29,000. Godfrey Financial Associates Inc. acquired a new stake in Southern Copper during the fourth quarter worth about $30,000. Finally, IFP Advisors Inc raised its stake in Southern Copper by 233.3% during the fourth quarter. IFP Advisors Inc now owns 230 shares of the basic materials company's stock worth $33,000 after purchasing an additional 161 shares during the period. 7.94% of the stock is currently owned by hedge funds and other institutional investors.

Southern Copper Stock Down 3.6%

Shares of NYSE SCCO opened at $187.95 on Friday. The company has a quick ratio of 4.56, a current ratio of 5.06 and a debt-to-equity ratio of 0.63. The business's 50 day moving average is $179.64 and its two-hundred day moving average is $182.97. Southern Copper Corporation has a 52-week low of $92.57 and a 52-week high of $223.88. The firm has a market cap of $156.81 billion, a price-to-earnings ratio of 27.48, a PEG ratio of 1.67 and a beta of 1.11.

Southern Copper (NYSE:SCCO - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The basic materials company reported $1.99 EPS for the quarter, topping the consensus estimate of $1.93 by $0.06. The business had revenue of $4.29 billion during 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 firm's quarterly revenue was up 40.6% on a year-over-year basis. Research analysts predict that Southern Copper Corporation will post 7.63 EPS for the current year.

Southern Copper Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Tuesday, August 11th will be issued a dividend of $1.10 per share. This is a positive change from Southern Copper's previous quarterly dividend of $1.00. The ex-dividend date is Tuesday, August 11th. This represents a $4.40 dividend on an annualized basis and a yield of 2.3%. Southern Copper's dividend payout ratio (DPR) is 64.33%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on SCCO shares. JPMorgan Chase & Co. boosted their target price 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. Citigroup restated a "positive" rating on shares of Southern Copper in a report on Wednesday, July 15th. Wells Fargo & Company lifted their price target on shares of Southern Copper from $168.97 to $169.96 and gave the company an "equal weight" rating in a research report on Thursday, July 9th. UBS Group reiterated a "sell" rating and issued a $158.10 price objective (up from $143.28) on shares of Southern Copper in a report on Tuesday, June 30th. Finally, Scotiabank reiterated an "underperform" rating and issued a $138.34 price objective (up from $133.40) on shares of Southern Copper in a research report on Monday, June 15th. Three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and seven have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Southern Copper has a consensus rating of "Reduce" and an average target price of $146.84.

Insiders Place Their Bets

In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 202 shares of Southern Copper stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $196.79, for a total value of $39,751.28. Following the completion of the transaction, the director directly owned 1,723 shares of the company's stock, valued at $339,066.65. The trade was a 10.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Over the last three months, insiders sold 711 shares of company stock valued at $133,247. Insiders own 0.07% of the company's stock.

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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