Southern Copper (NYSE:SCCO) Shares Down 8% - Here's Why

Key Points

• Southern Copper shares dropped 8% to $88.94, with trading volume increasing significantly to approximately 3.5 million shares, up 147% from the average daily volume.
• Wall Street analysts have mixed reviews on Southern Copper, with several downgrades and target price adjustments, resulting in a current consensus rating of "Hold" with a price target of $91.00.
• The company announced a dividend increase to $1.01 per share, representing a 2.7% dividend yield, up from the previous $0.62, with a payout ratio of 61.27%.

Southern Copper Corporation (NYSE:SCCO - Get Free Report) shares traded down 8% on Wednesday . The company traded as low as $89.34 and last traded at $88.94. 3,556,893 shares were traded during trading, an increase of 147% from the average session volume of 1,442,577 shares. The stock had previously closed at $96.66.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the stock. Hsbc Global Res raised shares of Southern Copper from a "moderate sell" rating to a "hold" rating in a research note on Thursday, April 24th. Morgan Stanley reiterated an "underweight" rating and issued a $99.00 price target (up previously from $86.00) on shares of Southern Copper in a report on Tuesday, July 15th. JPMorgan Chase & Co. reduced their target price on shares of Southern Copper from $83.50 to $79.00 and set a "neutral" rating on the stock in a report on Thursday, July 3rd. UBS Group downgraded shares of Southern Copper from a "buy" rating to a "neutral" rating and set a $105.00 price target on the stock. in a research note on Tuesday, July 1st. Finally, Wall Street Zen cut Southern Copper from a "buy" rating to a "hold" rating in a research note on Tuesday, May 20th. Three equities research analysts have rated the stock with a sell rating and five have assigned a hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $91.00.

Southern Copper Trading Down 3.0%

The company has a current ratio of 3.71, a quick ratio of 3.22 and a debt-to-equity ratio of 0.70. The stock has a market cap of $72.73 billion, a P/E ratio of 19.99, a PEG ratio of 1.30 and a beta of 1.02. The firm's 50-day simple moving average is $97.40 and its 200 day simple moving average is $93.86.

Southern Copper Increases Dividend

The business also recently disclosed a -- dividend, which will be paid on Thursday, September 4th. Stockholders of record on Friday, August 15th will be issued a $1.01 dividend. This represents a dividend yield of 270.0%. This is a boost from Southern Copper's previous -- dividend of $0.62. The ex-dividend date is Friday, August 15th. Southern Copper's payout ratio is 70.02%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SCCO. Cullen Frost Bankers Inc. lifted its stake in Southern Copper by 117.6% during the first quarter. Cullen Frost Bankers Inc. now owns 272 shares of the basic materials company's stock valued at $25,000 after purchasing an additional 147 shares during the last quarter. Golden State Wealth Management LLC purchased a new stake in Southern Copper in the 1st quarter worth approximately $29,000. N.E.W. Advisory Services LLC purchased a new stake in Southern Copper in the 1st quarter worth approximately $34,000. Quarry LP bought a new position in shares of Southern Copper during the 1st quarter valued at $41,000. Finally, Bessemer Group Inc. raised its holdings in shares of Southern Copper by 3,100.0% during the 2nd quarter. Bessemer Group Inc. now owns 480 shares of the basic materials company's stock valued at $49,000 after purchasing an additional 465 shares in the last quarter. 7.94% of the stock is currently owned by institutional investors.

Southern Copper Company Profile

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc, copper, molybdenum, silver, gold, and lead.