Occidental Asset Management LLC Invests $6.21 Million in Southern Copper Corporation $SCCO

Key Points

• Occidental Asset Management initiated a $6.21 million position in Southern Copper during the second quarter, while institutional investors collectively own 7.94% of the company.
• Southern Copper reported quarterly EPS of $1.99, beating estimates by $0.06, while revenue rose 40.6% year over year to $4.29 billion. The company also raised its quarterly dividend to $1.10, representing a 2.3% annualized yield.
• Despite the stock opening at $192.54 and gaining 4.3%, analyst sentiment remains cautious: the consensus rating is “Reduce,” with an average price target of $146.84.

Occidental Asset Management LLC bought a new stake in Southern Copper Corporation (NYSE:SCCO - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 35,666 shares of the basic materials company's stock, valued at approximately $6,215,000.

Other hedge funds also recently modified their holdings of the company. Bank of New York Mellon Corp purchased a new stake in Southern Copper in the 2nd quarter valued at $696,621,000. Norges Bank bought a new position in Southern Copper during the 4th quarter valued at $97,645,000. Capital Research Global Investors purchased a new position in Southern Copper during the 4th quarter worth $81,039,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in Southern Copper during the 1st quarter worth $85,342,000. Finally, Deutsche Bank AG bought a new stake in shares of Southern Copper in the 2nd quarter worth $85,770,000. Hedge funds and other institutional investors own 7.94% of the company's stock.

Insiders Place Their Bets

In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 202 shares of the firm's 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 sale, the director owned 1,723 shares of the company's stock, valued at $339,066.65. This trade represents a 10.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In the last 90 days, insiders sold 711 shares of company stock valued at $133,247. 0.07% of the stock is owned by corporate insiders.

Southern Copper Stock Up 4.3%

Southern Copper stock opened at $192.54 on Tuesday. The firm has a market capitalization of $160.64 billion, a price-to-earnings ratio of 28.15, a P/E/G ratio of 1.58 and a beta of 1.11. 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 has a 50 day simple moving average of $180.38 and a 200 day simple moving average of $182.99.

Southern Copper (NYSE:SCCO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.93 by $0.06. Southern Copper had a return on equity of 49.04% and a net margin of 35.87%.The business had revenue of $4.29 billion for 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. On average, analysts predict that Southern Copper Corporation will post 7.61 earnings per share for the current year.

Southern Copper Increases Dividend

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

Analysts Set New Price Targets

SCCO has been the subject of several analyst reports. Citigroup reiterated a "positive" rating on shares of Southern Copper in a report on Wednesday, July 15th. Zacks Research cut shares of Southern Copper from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. UBS Group reaffirmed a "sell" rating and issued a $158.10 price objective (up from $143.28) on shares of Southern Copper in a research report on Tuesday, June 30th. Barclays set a $164.03 price objective on shares of Southern Copper and gave the company an "underweight" rating in a research note on Thursday, July 23rd. Finally, Wall Street Zen downgraded Southern Copper from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Three research 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. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $146.84.

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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