Royal Bank of Canada Increases Stock Holdings in Southern Copper Corporation $SCCO

Key Points

• Royal Bank of Canada nearly tripled its Southern Copper stake in the first quarter, increasing holdings by 192.7% to 108,462 shares valued at approximately $18.7 million. Other institutional investors also raised their positions, though institutions collectively own just 7.94% of the stock.
• Southern Copper reported quarterly EPS of $2.01, beating estimates by $0.06, while revenue rose 40.6% year over year to $4.29 billion. The company also increased its quarterly dividend to $1.10 per share, representing a 2.3% annualized yield.
• Despite the strong operating results, analyst sentiment remains cautious: SCCO has a consensus “Reduce” rating and a $148.60 target price versus its reported $193.42 share price. The stock is also scheduled for a 1.012-for-1 share split before trading begins August 11.

Royal Bank of Canada boosted its stake in Southern Copper Corporation (NYSE:SCCO - Free Report) by 192.7% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 108,462 shares of the basic materials company's stock after acquiring an additional 71,405 shares during the quarter. Royal Bank of Canada's holdings in Southern Copper were worth $18,662,000 as of its most recent filing with the SEC.

A number of other large investors also recently added to or reduced their stakes in SCCO. Empowered Funds LLC lifted its holdings in Southern Copper by 896.1% during the first quarter. Empowered Funds LLC now owns 50,421 shares of the basic materials company's stock valued at $8,676,000 after purchasing an additional 45,359 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Southern Copper by 4.9% during the first quarter. The Manufacturers Life Insurance Company now owns 32,315 shares of the basic materials company's stock worth $5,560,000 after purchasing an additional 1,509 shares in the last quarter. KCM Investment Advisors LLC raised its position in shares of Southern Copper by 7.4% during the 1st quarter. KCM Investment Advisors LLC now owns 86,082 shares of the basic materials company's stock worth $14,811,000 after purchasing an additional 5,951 shares during the last quarter. Quantinno Capital Management LP raised its position in shares of Southern Copper by 15.3% during the 1st quarter. Quantinno Capital Management LP now owns 51,044 shares of the basic materials company's stock worth $8,783,000 after purchasing an additional 6,789 shares during the last quarter. Finally, Gateway Wealth Partners LLC purchased a new position in Southern Copper in the 1st quarter valued at about $244,000. 7.94% of the stock is currently owned by institutional investors and hedge funds.

Southern Copper Stock Down 1.8%

SCCO stock opened at $193.42 on Friday. The company has a market cap of $159.78 billion, a price-to-earnings ratio of 28.28, a PEG ratio of 1.69 and a beta of 1.11. The company has a current ratio of 5.06, a quick ratio of 3.89 and a debt-to-equity ratio of 0.63. Southern Copper Corporation has a 12 month low of $92.57 and a 12 month high of $223.88. The firm has a 50-day moving average of $181.69 and a two-hundred day moving average of $184.61.

Shares of Southern Copper are going to split before the market opens on Tuesday, August 11th. The 1.012-1 split was recently announced. The newly created shares will be payable to shareholders after the closing bell on Monday, August 10th.

Southern Copper (NYSE:SCCO - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The basic materials company reported $2.01 earnings per share for the quarter, topping the consensus estimate of $1.95 by $0.06. The business had revenue of $4.29 billion for the quarter, compared to analysts' expectations 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. As a group, analysts forecast that Southern Copper Corporation will post 7.63 earnings per share for the current fiscal year.

Southern Copper Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Tuesday, August 11th will be given 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 yield of 2.3%. Southern Copper's dividend payout ratio (DPR) is 58.48%.

Wall Street Analysts Forecast Growth

SCCO has been the topic of several research analyst reports. Weiss Ratings upgraded Southern Copper from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, July 28th. UBS Group reissued a "sell" rating and set a $160.00 target price (up from $145.00) on shares of Southern Copper in a report on Tuesday, June 30th. JPMorgan Chase & Co. raised their target price on Southern Copper from $127.00 to $131.50 and gave the company an "underweight" rating in a research report on Wednesday, June 17th. Wells Fargo & Company lifted their price target on Southern Copper from $171.00 to $172.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. Finally, Barclays set a $166.00 price objective on Southern Copper and gave the company an "underweight" rating in a research note on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and seven have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $148.60.

Insiders Place Their Bets

In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 200 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $199.15, for a total value of $39,830.00. Following the completion of the sale, the director directly owned 1,703 shares in the company, valued at $339,152.45. This represents a 10.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold a total of 804 shares of company stock worth $151,338 over the last quarter. 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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