Southern Copper Corporation (NYSE:SCCO) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Analysts have a consensus "Reduce" rating on Southern Copper (13 firms: 7 sell, 4 hold, 2 buy) with an average 12‑month target of about $144.79, well below the stock's recent price near $194.44.
• The company slightly beat quarterly estimates (EPS $1.55 vs. $1.54; revenue $3.87B vs. $3.73B) and reported strong profitability (net margin 32.3%, ROE 41.97%), while analysts forecast ~4.66 EPS for the year.
• Southern Copper raised its quarterly dividend to $1.00 ($4.00 annualized, ~2.1% yield) but insiders recently sold roughly 9,526 shares (~$1.99M), leaving insider ownership at about 0.07%.

Shares of Southern Copper Corporation (NYSE:SCCO - Get Free Report) have received a consensus rating of "Reduce" from the thirteen research firms that are presently covering the company, MarketBeat reports. Seven 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 a report on the stock in the last year is $144.7885.

Several research firms have recently weighed in on SCCO. Scotiabank reiterated an "underperform" rating on shares of Southern Copper in a research note on Tuesday, January 27th. Wall Street Zen upgraded shares of Southern Copper from a "hold" rating to a "buy" rating in a research note on Saturday, March 21st. Bank of America lowered shares of Southern Copper from a "neutral" rating to an "underperform" rating and lifted their price objective for the company from $162.00 to $175.00 in a research note on Thursday, February 26th. Morgan Stanley lifted their price target on shares of Southern Copper from $155.00 to $160.00 and gave the company an "underweight" rating in a research report on Thursday, April 9th. Finally, The Goldman Sachs Group raised shares of Southern Copper from a "sell" rating to a "neutral" rating and set a $178.00 price target for the company in a research report on Friday, April 10th.

Southern Copper Stock Up 3.3%

Southern Copper stock opened at $194.44 on Friday. The firm has a 50 day moving average price of $187.46 and a two-hundred day moving average price of $161.10. The firm has a market cap of $159.27 billion, a price-to-earnings ratio of 36.55, a PEG ratio of 1.89 and a beta of 1.16. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.40 and a current ratio of 3.89. Southern Copper has a 52-week low of $84.97 and a 52-week high of $223.88.

Southern Copper (NYSE:SCCO - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The basic materials company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.54 by $0.01. The company had revenue of $3.87 billion during the quarter, compared to analyst estimates of $3.73 billion. Southern Copper had a net margin of 32.30% and a return on equity of 41.97%. During the same quarter in the previous year, the business posted $0.98 EPS. Equities analysts predict that Southern Copper will post 4.66 EPS for the current year.

Southern Copper Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Tuesday, February 10th were given a $1.00 dividend. This represents a $4.00 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, February 10th. This is an increase from Southern Copper's previous quarterly dividend of $0.90. Southern Copper's payout ratio is 75.19%.

Insider Buying and Selling at Southern Copper

In related news, Director Lerdo De Tejada Leon Contreras sold 9,326 shares of Southern Copper stock in a transaction 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 owned 605 shares of the company's stock, valued at approximately $126,783.04. This trade represents a 93.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Bonilla Luis Miguel Palomino sold 193 shares of Southern Copper stock in a transaction on Friday, March 13th. The stock was sold at an average price of $174.60, for a total transaction of $33,697.80. Following the transaction, the director directly owned 1,707 shares in the company, valued at $298,042.20. This represents a 10.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 9,526 shares of company stock valued at $1,989,373. 0.07% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Southern Copper

A number of hedge funds have recently bought and sold shares of the company. Intech Investment Management LLC boosted its holdings in 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 worth $865,000 after acquiring an additional 50 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings in 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 worth $871,000 after acquiring an additional 51 shares during the last quarter. Steel Grove Capital Advisors LLC boosted its holdings in 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 worth $417,000 after acquiring an additional 52 shares during the last quarter. Ensign Peak Advisors Inc boosted its holdings in 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 worth $915,000 after acquiring an additional 53 shares during the last quarter. Finally, Venture Visionary Partners LLC boosted its holdings in 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 worth $1,004,000 after acquiring an additional 53 shares during the last quarter. 7.94% of the stock is owned by hedge funds and other institutional investors.

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.