Hsbc Holdings PLC Invests $44.48 Million in Southern Copper Corporation $SCCO

Key Points

• HSBC acquired 256,077 Southern Copper shares during the second quarter, establishing a position valued at approximately $44.48 million. Other institutional investors also initiated positions, though institutional ownership remains relatively low at 7.94%.
• Analysts remain cautious on SCCO, with three Buy, five Hold, and seven Sell ratings producing an average “Reduce” rating and a $146.84 price target.
• Southern Copper reported quarterly EPS of $1.99, exceeding estimates, while revenue rose 40.6% year over year. The company raised its quarterly dividend to $1.10 per share, equal to a 2.1% annualized yield.

Hsbc Holdings PLC purchased a new position in shares of Southern Copper Corporation (NYSE:SCCO - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 256,077 shares of the basic materials company's stock, valued at approximately $44,484,000.

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

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on SCCO shares. JPMorgan Chase & Co. lifted their price target on shares of Southern Copper from $125.49 to $129.94 and gave the company an "underweight" rating in a research note on Wednesday, June 17th. Morgan Stanley increased their price objective on Southern Copper from $144.27 to $156.13 and gave the stock an "underweight" rating in a research note on Wednesday, July 8th. UBS Group restated a "sell" rating and set a $158.10 price objective (up from $143.28) on shares of Southern Copper in a report on Tuesday, June 30th. Zacks Research lowered Southern Copper from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 7th. Finally, Citigroup reiterated a "positive" rating on shares of Southern Copper in a report on Wednesday, July 15th. Three investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and seven have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $146.84.

Southern Copper Trading Down 2.7%

NYSE:SCCO opened at $213.68 on Thursday. The firm has a 50-day simple moving average of $183.73 and a 200-day simple moving average of $183.58. Southern Copper Corporation has a one year low of $92.94 and a one year high of $223.88. The firm has a market cap of $178.28 billion, a P/E ratio of 31.24, a P/E/G ratio of 1.88 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 released its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.93 by $0.06. The firm had revenue of $4.29 billion for the quarter, compared to the consensus estimate of $4.37 billion. Southern Copper had a net margin of 35.87% and a return on equity of 49.04%. The firm's quarterly revenue was up 40.6% on a year-over-year basis. Equities analysts anticipate that Southern Copper Corporation will post 7.61 EPS for the current fiscal year.

Southern Copper Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th will be paid a dividend of $1.10 per share. The ex-dividend date is Tuesday, August 11th. This is a positive change 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%. Southern Copper's payout ratio is presently 64.33%.

Insider Buying and Selling at Southern Copper

In related news, Director Bonilla Luis Miguel Palomino sold 202 shares of Southern Copper stock in a transaction that occurred on 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 directly owned 1,723 shares in the company, valued at $339,066.65. This trade represents a 10.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders sold a total of 509 shares of company stock worth $97,753 in the last 90 days. 0.07% of the stock is currently owned by insiders.

Southern Copper 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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