NewEdge Advisors LLC Sells 5,337 Shares of Southern Copper Corporation $SCCO

Key Points

• NewEdge Advisors reduced its Southern Copper position by 13%, selling 5,337 shares during the second quarter and retaining 35,573 shares valued at approximately $6.2 million.
• Southern Copper reported quarterly EPS of $1.99, ahead of the $1.93 consensus estimate, while revenue rose 40.6% year over year to $4.29 billion. The company also increased its quarterly dividend to $1.10 per share, or $4.40 annually.
• Despite strong earnings and copper-demand prospects, valuation remains a concern: the stock trades at about 28 times earnings, while analysts maintain a consensus “Reduce” rating and an average price target of $146.84.

NewEdge Advisors LLC decreased its position in Southern Copper Corporation (NYSE:SCCO - Free Report) by 13.0% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 35,573 shares of the basic materials company's stock after selling 5,337 shares during the quarter. NewEdge Advisors LLC's holdings in Southern Copper were worth $6,199,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also modified their holdings of the company. IFP Advisors Inc boosted its position in shares of Southern Copper by 19.5% during the 2nd quarter. IFP Advisors Inc now owns 7,859 shares of the basic materials company's stock valued at $1,370,000 after acquiring an additional 1,285 shares during the last quarter. Baird Financial Group Inc. increased its position in Southern Copper by 2.4% in the second quarter. Baird Financial Group Inc. now owns 3,546 shares of the basic materials company's stock worth $618,000 after purchasing an additional 83 shares during the last quarter. Allworth Financial LP increased its position in Southern Copper by 320.7% in the second quarter. Allworth Financial LP now owns 9,824 shares of the basic materials company's stock worth $1,712,000 after purchasing an additional 7,489 shares during the last quarter. Nykredit A S bought a new stake in Southern Copper in the second quarter worth $13,689,000. Finally, HighTower Advisors LLC raised its stake in Southern Copper by 11.9% during the second quarter. HighTower Advisors LLC now owns 58,421 shares of the basic materials company's stock valued at $10,180,000 after purchasing an additional 6,195 shares in the last quarter. 7.94% of the stock is owned by hedge funds and other institutional investors.

Southern Copper Stock Down 0.1%

NYSE SCCO opened at $193.22 on Monday. 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 company has a fifty day moving average of $190.63 and a two-hundred day moving average of $184.19. The firm has a market capitalization of $161.21 billion, a price-to-earnings ratio of 28.25, a PEG ratio of 1.73 and a beta of 1.14. Southern Copper Corporation has a 52 week low of $104.98 and a 52 week high of $223.88.

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, beating the consensus estimate of $1.93 by $0.06. The business 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 company's quarterly revenue was up 40.6% on a year-over-year basis. On average, analysts predict that Southern Copper Corporation will post 7.83 earnings per share for the current year.

Southern Copper Increases Dividend

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

Key Headlines Impacting Southern Copper

Here are the key news stories impacting Southern Copper this week:

• Positive Sentiment: Southern Copper retains a favorable long-term outlook because tight mine supply could benefit producers if demand from artificial-intelligence data centers, power-grid upgrades and renewable infrastructure remains strong. The company also recently raised its quarterly dividend to $1.10 per share, or $4.40 annualized. Copper demand and Southern Copper outlook
• Positive Sentiment: Recent earnings momentum remains supportive: Southern Copper reported quarterly EPS of $1.99, exceeding the $1.93 consensus estimate, while revenue increased 40.6% year over year. Zacks continues to identify SCCO as a momentum stock for longer-term investors. Southern Copper momentum analysis
• Neutral Sentiment: Director Luis Palomino Bonilla sold 100 shares for approximately $21,000 at $210 per share, reducing his position by 6.24%. The sale follows several earlier disposals but leaves him with 1,503 shares, making the latest transaction relatively small. Southern Copper insider sale
• Negative Sentiment: Copper’s retreat and uncertainty over refined-copper tariffs pressured SCCO and peer miners. Elevated prices may also be curbing demand, with Chinese imports reportedly at a six-year low for August. Copper miners tariff-related decline
• Negative Sentiment: Valuation adds downside risk: SCCO trades near 28 times earnings, while the analyst consensus is “Reduce” with an average price target of about $146.84, well below recent trading levels. Southern Copper analyst forecast

Insiders Place Their Bets

In related news, Director Luis Palomino Bonilla sold 202 shares of the 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 sale, the director directly owned 1,723 shares of the company's stock, valued at $339,066.65. This represents a 10.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last 90 days, insiders have sold 604 shares of company stock valued at $118,077. Corporate insiders own 0.07% of the company's stock.

Analyst Ratings Changes

Several research firms have commented on SCCO. Citigroup reiterated a "positive" rating on shares of Southern Copper in a research report on Wednesday, July 15th. Weiss Ratings upgraded shares of Southern Copper from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, July 28th. Barclays set a $164.03 price target on shares of Southern Copper and gave the company an "underweight" rating in a report on Thursday, July 23rd. Morgan Stanley lifted their price target on Southern Copper from $144.27 to $156.13 and gave the stock an "underweight" rating in a research report on Wednesday, July 8th. Finally, JPMorgan Chase & Co. boosted their price objective on Southern Copper from $125.49 to $129.94 and gave the stock an "underweight" rating in a research note on Wednesday, June 17th. Three equities research 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. According to data from MarketBeat, Southern Copper presently has a consensus rating of "Reduce" and an average target price of $146.84.

Southern Copper Profile

Southern Copper Corporation NYSE: SCCO is an integrated copper producer engaged in the exploration, mining, processing, smelting and refining of minerals. The company produces copper in the form of cathodes, concentrates and anodes, along with byproducts including molybdenum, zinc, silver, lead and sulfuric acid.

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

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