Southern Copper (NYSE:SCCO) Trading Down 8% - What's Next?

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%.

Shares of Southern Copper Corporation (NYSE:SCCO - Get Free Report) 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.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Hsbc Global Res upgraded shares of Southern Copper from a "moderate sell" rating to a "hold" rating in a report on Thursday, April 24th. Itau BBA Securities upgraded shares of Southern Copper from an "underperform" rating to a "market perform" rating in a research note on Wednesday, June 11th. JPMorgan Chase & Co. cut their target price on Southern Copper from $83.50 to $79.00 and set a "neutral" rating on the stock in a research report on Thursday, July 3rd. Wall Street Zen cut Southern Copper from a "buy" rating to a "hold" rating in a research report on Tuesday, May 20th. Finally, Morgan Stanley reiterated an "underweight" rating and set a $99.00 price target (up previously from $86.00) on shares of Southern Copper in a research note on Tuesday, July 15th. Three analysts have rated the stock with a sell rating and five have assigned a hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $91.00.

Southern Copper Price Performance

The company has a debt-to-equity ratio of 0.70, a current ratio of 3.71 and a quick ratio of 3.22. The stock has a fifty day simple moving average of $97.39 and a 200-day simple moving average of $93.81. The company has a market capitalization of $72.91 billion, a price-to-earnings ratio of 20.04, a P/E/G ratio of 1.32 and a beta of 1.00.

Southern Copper Increases Dividend

The company also recently declared a -- dividend, which will be paid on Thursday, September 4th. Investors of record on Friday, August 15th will be issued a dividend of $1.01 per share. This represents a yield of 270.0%. This is a boost from Southern Copper's previous -- dividend of $0.62. The ex-dividend date of this dividend is Friday, August 15th. Southern Copper's payout ratio is currently 61.27%.

Institutional Investors Weigh In On Southern Copper

A number of institutional investors have recently modified their holdings of SCCO. Teacher Retirement System of Texas acquired a new stake in Southern Copper in the 1st quarter worth about $2,637,000. Golden State Wealth Management LLC purchased a new position in shares of Southern Copper in the first quarter valued at approximately $29,000. Oppenheimer & Co. Inc. purchased a new position in shares of Southern Copper in the first quarter valued at approximately $337,000. GAMMA Investing LLC boosted its stake in Southern Copper by 35.2% during the 1st quarter. GAMMA Investing LLC now owns 906 shares of the basic materials company's stock worth $85,000 after purchasing an additional 236 shares during the last quarter. Finally, Novem Group grew its stake in Southern Copper by 34.4% during the 1st quarter. Novem Group now owns 10,758 shares of the basic materials company's stock valued at $1,005,000 after acquiring an additional 2,754 shares in the last quarter. 7.94% of the stock is currently owned by institutional investors and hedge funds.

About Southern Copper

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.