Southern Copper Corporation (NYSE:SCCO) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Southern Copper has a consensus “Reduce” rating from 15 brokerages, including seven sell ratings, four holds, three buys and one strong buy. Analysts’ average 12-month price target is $148.60, below the stock’s reported $179.69 price.
• The company reported quarterly EPS of $2.01, beating estimates of $1.95, while revenue reached $4.29 billion, up 40.6% year over year but below expectations of $4.37 billion.
• Southern Copper increased its quarterly dividend to $1.10 per share, implying a $4.40 annual payout and a 2.4% yield; the stock is also scheduled for a 1.012-for-1 split on August 11.

Shares of Southern Copper Corporation (NYSE:SCCO - Get Free Report) have been given a consensus rating of "Reduce" by the fifteen brokerages that are presently covering the company, Marketbeat.com reports. Seven investment analysts have rated the stock with a sell rating, four have given a hold rating, three have given a buy rating and one has given a strong buy rating to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $148.6022.

A number of equities analysts recently issued reports on the company. The Goldman Sachs Group raised Southern Copper from a "sell" rating to a "neutral" rating and set a $178.00 price target on the stock in a report on Friday, April 10th. Wells Fargo & Company upped their price objective on Southern Copper from $171.00 to $172.00 and gave the company an "equal weight" rating in a research note on Thursday, July 9th. Scotiabank reaffirmed an "underperform" rating and set a $140.00 price objective (up from $135.00) on shares of Southern Copper in a research report on Monday, June 15th. Weiss Ratings downgraded Southern Copper from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, July 8th. Finally, CICC Research lowered Southern Copper to a "market perform" rating in a report on Sunday.

Southern Copper Stock Up 0.2%

SCCO stock opened at $179.69 on Monday. The company has a market cap of $148.44 billion, a price-to-earnings ratio of 26.27, a price-to-earnings-growth ratio of 1.54 and a beta of 1.11. The company has a fifty day moving average price of $180.76 and a 200 day moving average price of $183.60. The company has a debt-to-equity ratio of 0.57, a current ratio of 4.38 and a quick ratio of 3.89. Southern Copper has a 12 month low of $88.73 and a 12 month high of $223.88.

Southern Copper's stock is scheduled to split on Tuesday, August 11th. The 1.012-1 split was recently announced. The newly issued shares will be distributed to shareholders after the market closes on Monday, August 10th.

Southern Copper (NYSE:SCCO - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $2.01 EPS for the quarter, beating analysts' consensus estimates of $1.95 by $0.06. Southern Copper had a net margin of 35.87% and a return on equity of 50.74%. The company had revenue of $4.29 billion for the quarter, compared to analyst estimates of $4.37 billion. Southern Copper's quarterly revenue was up 40.6% on a year-over-year basis. Sell-side analysts expect that Southern Copper will post 7.63 earnings per share for the current year.

Southern Copper Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Tuesday, August 11th will be issued a dividend of $1.10 per share. This is a boost from Southern Copper's previous quarterly dividend of $1.00. This represents a $4.40 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, August 11th. Southern Copper's dividend payout ratio is 58.48%.

Insiders Place Their Bets

In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 200 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $177.82, for a total value of $35,564.00. Following the transaction, the director directly owned 1,807 shares of the company's stock, valued at approximately $321,320.74. The trade was a 9.97% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last 90 days, insiders have sold 404 shares of company stock valued at $74,108. Company insiders own 0.07% of the company's stock.

Institutional Trading of Southern Copper

Several hedge funds and other institutional investors have recently made changes to their positions in SCCO. Royal Bank of Canada raised its holdings in Southern Copper by 42.1% during the first quarter. Royal Bank of Canada now owns 44,879 shares of the basic materials company's stock worth $4,194,000 after purchasing an additional 13,293 shares in the last quarter. Empowered Funds LLC boosted its holdings in Southern Copper by 17.9% in the 1st quarter. Empowered Funds LLC now owns 6,705 shares of the basic materials company's stock valued at $627,000 after purchasing an additional 1,020 shares in the last quarter. Focus Partners Wealth increased its position in Southern Copper by 21.5% during the 1st quarter. Focus Partners Wealth now owns 5,944 shares of the basic materials company's stock worth $556,000 after purchasing an additional 1,052 shares during the period. First Trust Advisors LP increased its position in Southern Copper by 37.4% during the 2nd quarter. First Trust Advisors LP now owns 73,379 shares of the basic materials company's stock worth $7,424,000 after purchasing an additional 19,957 shares during the period. Finally, Baird Financial Group Inc. raised its stake in shares of Southern Copper by 17.7% during the 2nd quarter. Baird Financial Group Inc. now owns 4,864 shares of the basic materials company's stock worth $492,000 after buying an additional 731 shares in the last quarter. Hedge funds and other institutional investors own 7.94% 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.