Southern Copper (NYSE:SCCO) Upgraded at The Goldman Sachs Group

Key Points

• The Goldman Sachs Group upgraded Southern Copper from "sell" to "neutral" and set a $178 price target, implying roughly a 5.5% downside from the prior close.
• Analyst coverage is still mixed with a consensus rating of "Reduce" (2 Buys, 4 Holds, 7 Sells) and an average price target of $144.23, well below current trading levels.
• Southern Copper slightly beat quarterly estimates (EPS $1.55 vs. $1.54; revenue $3.87B vs. $3.73B) and reported strong profitability (ROE 41.97%, net margin 32.3%).

Southern Copper (NYSE:SCCO - Get Free Report) was upgraded by The Goldman Sachs Group from a "sell" rating to a "neutral" rating in a research report issued to clients and investors on Friday, MarketBeat reports. The firm presently has a $178.00 target price on the basic materials company's stock. The Goldman Sachs Group's price target would indicate a potential downside of 5.52% from the company's previous close.

SCCO has been the subject of a number of other reports. Wall Street Zen upgraded shares of Southern Copper from a "hold" rating to a "buy" rating in a report on Saturday, March 21st. JPMorgan Chase & Co. reaffirmed an "underweight" rating and issued a $116.51 price objective (down from $118.49) on shares of Southern Copper in a research report on Friday, January 23rd. Citigroup reiterated a "sell" rating on shares of Southern Copper in a research note on Monday, January 12th. Scotiabank reissued an "underperform" rating on shares of Southern Copper in a research report on Tuesday, January 27th. Finally, Bank of America downgraded shares of Southern Copper from a "neutral" rating to an "underperform" rating and raised their target price for the company from $162.00 to $175.00 in a research note on Thursday, February 26th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and seven have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $144.23.

Southern Copper Stock Up 0.7%

Shares of NYSE SCCO opened at $188.39 on Friday. Southern Copper has a 12-month low of $79.26 and a 12-month high of $223.88. The stock's fifty day simple moving average is $187.87 and its two-hundred day simple moving average is $157.89. The stock has a market capitalization of $154.31 billion, a PE ratio of 35.41, a price-to-earnings-growth ratio of 1.93 and a beta of 1.16. The company has a current ratio of 3.89, a quick ratio of 3.40 and a debt-to-equity ratio of 0.61.

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

Insiders Place Their Bets

In other news, Director Bonilla Luis Miguel Palomino sold 193 shares of the stock in a transaction on Friday, March 13th. The shares were sold at an average price of $174.60, for a total value of $33,697.80. Following the sale, the director 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Lerdo De Tejada Leon Contreras sold 9,326 shares of the firm's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $209.56, for a total transaction of $1,954,344.91. Following the transaction, the director directly owned 605 shares of the company's stock, valued at approximately $126,783.04. This trade represents a 93.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 9,526 shares of company stock worth $1,989,373 in the last quarter. Company insiders own 0.07% of the company's stock.

Hedge Funds Weigh In On Southern Copper

Several institutional investors and hedge funds have recently modified their holdings of SCCO. McAlvany Wealth Management LLC purchased a new stake in shares of Southern Copper in the fourth quarter worth about $1,810,000. Purpose Unlimited Inc. purchased a new position in Southern Copper during the fourth quarter valued at approximately $76,000. Rockefeller Capital Management L.P. lifted its holdings in Southern Copper by 1.2% in the fourth quarter. Rockefeller Capital Management L.P. now owns 57,077 shares of the basic materials company's stock valued at $8,189,000 after acquiring an additional 702 shares during the period. Fund Advisors of America Inc FL acquired a new position in Southern Copper in the fourth quarter valued at approximately $692,000. Finally, World Investment Advisors purchased a new stake in Southern Copper in the 4th quarter worth approximately $413,000. Institutional investors and hedge funds own 7.94% of the company's stock.

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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