Southern Copper (NYSE:SCCO) Shares Up 8.3% - Still a Buy?

Key Points

• Southern Copper shares jumped 8.3% to $215.17, while trading volume was 85% below its average. The stock is trading well above its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: the consensus rating is “Reduce”, with a $146.84 price target versus the current share price. Three analysts rate it a Buy, compared with five Holds and seven Sells.
• The company exceeded quarterly EPS expectations and reported 40.6% year-over-year revenue growth; it also raised its quarterly dividend to $1.10 per share, implying a 2.1% yield.

Southern Copper Corporation (NYSE:SCCO - Get Free Report)'s stock price rose 8.3% on Friday . The stock traded as high as $215.25 and last traded at $215.17. 247,466 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 1,635,531 shares. The stock had previously closed at $198.73.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Citigroup restated a "positive" rating on shares of Southern Copper in a research report on Wednesday, July 15th. Scotiabank reissued an "underperform" rating and set a $138.34 price objective (up from $133.40) on shares of Southern Copper in a research note on Monday, June 15th. UBS Group restated a "sell" rating and set a $158.10 price objective (up from $143.28) on shares of Southern Copper in a report on Tuesday, June 30th. Wells Fargo & Company increased their target price on shares of Southern Copper from $168.97 to $169.96 and gave the stock an "equal weight" rating in a report on Thursday, July 9th. Finally, Weiss Ratings raised shares of Southern Copper from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, July 28th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and seven have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $146.84.

Southern Copper Price Performance

The company has a current ratio of 5.06, a quick ratio of 4.56 and a debt-to-equity ratio of 0.63. The company has a 50 day simple moving average of $181.66 and a 200 day simple moving average of $182.97. The stock has a market cap of $174.88 billion, a P/E ratio of 30.64, a PEG ratio of 1.67 and a beta of 1.11.

Southern Copper (NYSE:SCCO - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $1.99 EPS for the quarter, topping analysts' consensus estimates of $1.93 by $0.06. Southern Copper had a net margin of 35.87% and a return on equity of 49.04%. The company had revenue of $4.29 billion during the quarter, compared to the consensus estimate of $4.37 billion. Southern Copper's quarterly revenue was up 40.6% on a year-over-year basis. Sell-side analysts forecast that Southern Copper Corporation will post 7.61 earnings per share for the current fiscal year.

Southern Copper Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th will be paid 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 2.1%. Southern Copper's dividend payout ratio is currently 64.33%.

Insider Buying and Selling

In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 202 shares of the company's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $196.79, for a total value of $39,751.28. Following the completion of the transaction, the director owned 1,723 shares of the company's stock, valued at $339,066.65. This represents a 10.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders sold a total of 509 shares of company stock worth $97,753 over the last three months. 0.07% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Southern Copper

Several hedge funds and other institutional investors have recently bought and sold shares of SCCO. BlackRock Inc. purchased a new stake in shares of Southern Copper in the second quarter valued at about $1,729,500,000. Bank of New York Mellon Corp purchased a new stake in Southern Copper in the second quarter valued at approximately $696,621,000. State Street Corp boosted its holdings in shares of Southern Copper by 2.4% in the 4th quarter. State Street Corp now owns 2,862,244 shares of the basic materials company's stock worth $410,646,000 after purchasing an additional 66,268 shares in the last quarter. Fisher Asset Management LLC raised its position in Southern Copper by 0.3% in the 4th quarter. Fisher Asset Management LLC now owns 2,536,228 shares of the basic materials company's stock worth $363,873,000 after purchasing an additional 7,194 shares during the period. Finally, Bank of America Corp DE purchased a new stake in shares of Southern Copper during the second quarter valued at approximately $318,448,000. 7.94% of the stock is owned by institutional investors.

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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