Johnson Financial Group Inc. Invests $1.40 Million in Southern Copper Corporation $SCCO

Key Points

• Johnson Financial Group acquired 8,045 Southern Copper shares worth approximately $1.4 million during the second quarter. Several other major institutions also established positions, with institutional investors owning 7.94% of the stock.
• Southern Copper exceeded quarterly earnings expectations, reporting $1.99 EPS versus the $1.93 consensus estimate, while revenue increased 40.6% year over year to $4.29 billion.
• The company raised its quarterly dividend from $1.00 to $1.10 per share, implying a $4.40 annualized payout and a 2.3% yield. Despite the dividend increase, analysts remain cautious, assigning the stock an average “Reduce” rating and a $146.84 target price.

Johnson Financial Group Inc. acquired a new position in Southern Copper Corporation (NYSE:SCCO - Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 8,045 shares of the basic materials company's stock, valued at approximately $1,402,000.

Several other hedge funds have also recently bought and sold shares of the company. BlackRock Inc. bought a new position in Southern Copper in the 2nd quarter worth about $1,729,500,000. Bank of New York Mellon Corp bought a new stake in Southern Copper during the second quarter worth approximately $696,621,000. Norges Bank acquired a new stake in shares of Southern Copper in the fourth quarter valued at $97,645,000. Capital Research Global Investors acquired a new stake in Southern Copper in the 4th quarter valued at about $81,039,000. Finally, Healthcare of Ontario Pension Plan Trust Fund bought a new stake in Southern Copper during the first quarter worth approximately $85,342,000. 7.94% of the stock is currently owned by institutional investors.

Southern Copper Price Performance

Shares of SCCO stock opened at $194.57 on Thursday. Southern Copper Corporation has a 1 year low of $92.57 and a 1 year high of $223.88. The company has a current ratio of 5.06, a quick ratio of 4.56 and a debt-to-equity ratio of 0.63. The firm's 50 day moving average is $181.26 and its 200-day moving average is $182.88. The firm has a market capitalization of $162.33 billion, a price-to-earnings ratio of 28.45, a PEG ratio of 1.61 and a beta of 1.11.

Southern Copper (NYSE:SCCO - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $4.37 billion. The company's revenue for the quarter was up 40.6% compared to the same quarter last year. Sell-side analysts forecast that Southern Copper Corporation will post 7.61 EPS for the current fiscal year.

Southern Copper Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th will be given a $1.10 dividend. The ex-dividend date is Tuesday, August 11th. This represents a $4.40 annualized dividend and a dividend yield of 2.3%. This is an increase from Southern Copper's previous quarterly dividend of $1.00. Southern Copper's dividend payout ratio is 64.33%.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on SCCO. Barclays set a $164.03 price target on Southern Copper and gave the company an "underweight" rating in a research report on Thursday, July 23rd. Zacks Research cut shares of Southern Copper from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. CICC Research downgraded Southern Copper to a "market perform" rating in a report on Sunday, July 26th. JPMorgan Chase & Co. raised their target price on Southern Copper from $125.49 to $129.94 and gave the company an "underweight" rating in a report on Wednesday, June 17th. Finally, Weiss Ratings upgraded shares of Southern Copper from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, July 28th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and seven have given a Sell rating to the company. According to MarketBeat.com, Southern Copper presently has an average 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 the 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 transaction, the director owned 1,723 shares of the company's stock, valued at approximately $339,066.65. This represents a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders sold a total of 509 shares of company stock valued at $97,753 over the last quarter. Corporate insiders own 0.07% of the company's stock.

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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