Investors Buy Large Volume of Southern Copper Put Options (NYSE:SCCO)

Key Points

• Unusual bearish options activity: Traders bought 10,968 put options on SCCO—about a 68% increase versus the typical 6,520 puts—signaling elevated bearish bets on the stock.
• Insider selling notable: Company insiders sold 9,526 shares worth roughly $1.99 million over the last three months (insider ownership is just 0.07%), including a director who sold 9,326 shares.
• Negative sentiment and leadership uncertainty: The sudden death of the CEO and resulting management uncertainty have driven sharp selling, and analysts collectively have a consensus “Reduce” rating with a $145.61 target price.

Southern Copper Corporation (NYSE:SCCO - Get Free Report) saw some unusual options trading on Friday. Traders acquired 10,968 put options on the stock. This is an increase of 68% compared to the typical volume of 6,520 put options.

Insider Activity at Southern Copper

In other news, Director Bonilla Luis Miguel Palomino sold 193 shares of the stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $174.60, for a total value of $33,697.80. Following the completion of the sale, the director directly owned 1,707 shares of the company's stock, valued at approximately $298,042.20. This represents a 10.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Lerdo De Tejada Leon Contreras sold 9,326 shares of the stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $209.56, for a total value of $1,954,344.91. Following the completion of the sale, the director directly owned 605 shares of the company's stock, valued at $126,783.04. This represents a 93.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 9,526 shares of company stock valued at $1,989,373 over the last three months. 0.07% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Hopwood Financial Services Inc. bought a new position in shares of Southern Copper during the third quarter valued at $25,000. SHP Wealth Management bought a new position in shares of Southern Copper during the fourth quarter valued at $25,000. Lloyd Advisory Services LLC. bought a new position in shares of Southern Copper during the fourth quarter valued at $29,000. Virtus Advisers LLC bought a new position in shares of Southern Copper during the fourth quarter valued at $29,000. Finally, United Community Bank bought a new position in shares of Southern Copper during the third quarter valued at $30,000. 7.94% of the stock is owned by institutional investors.

More Southern Copper News

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

• Positive Sentiment: Declared quarterly dividend of $1.00 per share (record May 13, payable May 29; ex‑div May 12) — yields ~2.2% on an annualized basis. This cash return provides a floor for income-oriented holders and may limit downside from sentiment-driven selling.
• Neutral Sentiment: News about Great Southern Copper (GSCU) is unrelated to SCCO but appeared in feeds; it's a junior explorer raising funds via warrant exercise. It shouldn't materially affect SCCO fundamentals. Read More.
• Negative Sentiment: Sudden death of the CEO and ensuing leadership uncertainty — media coverage highlights an abrupt management transition and investor concern about execution and near-term guidance, which has been cited as the primary driver of recent sharp selling. Read More.
• Negative Sentiment: Analysts flag risks: Consensus messaging is weak — an aggregation of analyst notes shows an average rating of “Reduce,” reflecting lowered conviction among brokers. That negative sentiment can pressure the stock until management clarity returns. Read More.
• Negative Sentiment: Scotiabank adjusted its target higher to $133 but maintained a “sector underperform” stance, implying sizable downside vs. current levels; the reiterated cautious view from a large bank reinforces negative sentiment despite the small target increase. Read More.
• Negative Sentiment: Critical investor commentary: recent pieces argue SCCO is an “expensive copper story” that can’t afford missteps — these narratives amplify risk aversion among value and event‑driven investors. Read More.
• Negative Sentiment: Near‑term earnings/operational scrutiny: Coverage notes the company faces an earnings test amid the leadership transition; any guidance misses or execution delays would likely deepen selling pressure. Read More.

Wall Street Analyst Weigh In

SCCO has been the subject of several research reports. Weiss Ratings reissued a "buy (b)" rating on shares of Southern Copper in a research report on Friday, March 27th. UBS Group reduced their target price on Southern Copper from $150.00 to $140.00 and set a "sell" rating for the company in a research report on Friday, March 27th. Wall Street Zen raised Southern Copper from a "hold" rating to a "buy" rating in a research report on Saturday, March 21st. Morgan Stanley raised their target price on Southern Copper from $155.00 to $160.00 and gave the stock an "underweight" rating in a research report on Thursday, April 9th. Finally, Scotiabank reaffirmed an "underperform" rating and issued a $133.00 target price (up from $125.00) on shares of Southern Copper in a research report on Thursday. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and seven have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $145.61.

Southern Copper Stock Performance

SCCO stock traded up $0.66 during midday trading on Friday, hitting $182.91. The stock had a trading volume of 308,683 shares, compared to its average volume of 2,003,505. The firm has a market capitalization of $149.82 billion, a price-to-earnings ratio of 34.38, a P/E/G ratio of 1.89 and a beta of 1.16. Southern Copper has a 52 week low of $86.59 and a 52 week high of $223.88. The stock has a 50-day simple moving average of $186.15 and a 200 day simple moving average of $162.84. The company has a current ratio of 3.89, a quick ratio of 3.40 and a debt-to-equity ratio of 0.61.

Southern Copper (NYSE:SCCO - Get Free Report) last issued its earnings results on Wednesday, January 28th. The basic materials company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.54 by $0.01. The firm had revenue of $3.87 billion during the quarter, compared to analysts' expectations of $3.73 billion. Southern Copper had a return on equity of 41.97% and a net margin of 32.30%.During the same period last year, the business earned $0.98 earnings per share. As a group, equities research analysts anticipate that Southern Copper will post 6.79 earnings per share for the current year.

Southern Copper Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Wednesday, May 13th will be issued a dividend of $1.00 per share. The ex-dividend date of this dividend is Tuesday, May 12th. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.2%. Southern Copper's dividend payout ratio (DPR) is presently 75.19%.

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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