Southern Copper Corporation (NYSE:SCCO) Given Average Rating of "Reduce" by Analysts

Key Points

• Southern Copper has a consensus analyst rating of “Reduce” from 13 firms, with seven sell ratings, four holds, and two buys. The average 12-month price target is about $144.25, below the stock’s recent trading level.
• The company reported strong first-quarter earnings, posting $1.92 EPS versus $1.88 expected and revenue of $4.25 billion versus $3.96 billion estimated. It also posted a high return on equity of 45.63% and net margin of 34.13%.
• Southern Copper announced a quarterly dividend of $1.00 per share, payable May 29, which annualizes to $4.00 per share and a yield of about 2.1%. The payout ratio is currently 66.12%.

Shares of Southern Copper Corporation (NYSE:SCCO - Get Free Report) have earned a consensus rating of "Reduce" from the thirteen ratings firms that are currently covering the company, Marketbeat Ratings reports. Seven research analysts have rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $144.2479.

A number of research analysts have weighed in on the company. The Goldman Sachs Group raised Southern Copper from a "sell" rating to a "neutral" rating and set a $178.00 target price for the company in a report on Friday, April 10th. Scotiabank reaffirmed an "underperform" rating and set a $133.00 target price (up from $125.00) on shares of Southern Copper in a report on Thursday, April 23rd. UBS Group cut their price objective on Southern Copper from $150.00 to $140.00 and set a "sell" rating for the company in a report on Friday, March 27th. JPMorgan Chase & Co. boosted their price objective on Southern Copper from $117.50 to $127.00 and gave the stock an "underweight" rating in a report on Friday, April 10th. Finally, Wall Street Zen raised Southern Copper from a "hold" rating to a "buy" rating in a report on Saturday, March 21st.

Southern Copper Trading Up 3.4%

NYSE SCCO opened at $191.62 on Wednesday. The stock has a market capitalization of $156.95 billion, a price-to-earnings ratio of 31.67, a PEG ratio of 1.81 and a beta of 1.07. Southern Copper has a one year low of $88.54 and a one year high of $223.88. The company has a debt-to-equity ratio of 0.57, a current ratio of 4.38 and a quick ratio of 3.89. The business's fifty day moving average is $180.70 and its 200-day moving average is $167.15.

Southern Copper (NYSE:SCCO - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The basic materials company reported $1.92 earnings per share for the quarter, topping the consensus estimate of $1.88 by $0.04. Southern Copper had a return on equity of 45.63% and a net margin of 34.13%.The company had revenue of $4.25 billion during the quarter, compared to analyst estimates of $3.96 billion. Equities research analysts predict that Southern Copper will post 6.99 EPS for the current year.

Southern Copper Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Wednesday, May 13th will be issued a dividend of $1.00 per share. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $4.00 annualized dividend and a dividend yield of 2.1%. Southern Copper's payout ratio is presently 66.12%.

Insiders Place Their Bets

In related news, Director Bonilla Luis Miguel Palomino sold 193 shares of the business's 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 owned 1,707 shares in the company, valued at $298,042.20. The trade was a 10.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.07% of the stock is owned by insiders.

Institutional Trading of Southern Copper

A number of hedge funds have recently bought and sold shares of SCCO. Intech Investment Management LLC grew its stake in shares of Southern Copper by 0.8% during the 4th quarter. Intech Investment Management LLC now owns 6,030 shares of the basic materials company's stock valued at $865,000 after acquiring an additional 50 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al grew its stake in shares of Southern Copper by 0.8% during the 4th quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 6,072 shares of the basic materials company's stock valued at $871,000 after acquiring an additional 51 shares during the period. Steel Grove Capital Advisors LLC grew its stake in shares of Southern Copper by 1.8% during the 4th quarter. Steel Grove Capital Advisors LLC now owns 2,910 shares of the basic materials company's stock valued at $417,000 after acquiring an additional 52 shares during the period. Ensign Peak Advisors Inc grew its stake in shares of Southern Copper by 0.8% during the 4th quarter. Ensign Peak Advisors Inc now owns 6,379 shares of the basic materials company's stock valued at $915,000 after acquiring an additional 53 shares during the period. Finally, Venture Visionary Partners LLC grew its stake in shares of Southern Copper by 0.8% during the 4th quarter. Venture Visionary Partners LLC now owns 6,998 shares of the basic materials company's stock valued at $1,004,000 after acquiring an additional 53 shares during the period. Institutional investors own 7.94% of the company's stock.

Southern Copper Company 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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