Shares of Southern Copper Corporation (NYSE:SCCO) have garnered an average rating of “Reduce” from thirteen research firms currently covering the company, according to a report from MarketBeat.com. The analysis reveals a divided perspective, with four analysts issuing a sell rating, seven assigning a hold rating, and two providing a buy recommendation.
The consensus indicates a 1-year target price of approximately $122.83 for Southern Copper shares. Recent reports highlight varying outlooks from several prominent analysts. For instance, Morgan Stanley established a target price of $138.00 while giving the stock an “underweight” rating in a report released on December 6, 2023. Meanwhile, Wall Street Zen upgraded its rating from hold to buy for the same shares.
In contrast, The Goldman Sachs Group reiterated a sell rating, adjusting its price target to $115.00, an increase from a previous estimate of $89.00. UBS Group maintained a neutral stance, raising its target price to $143.00 from $135.00 in a note dated December 12, 2023. Additionally, Citigroup reaffirmed a sell rating and set a target price of $108.00, up from $89.10.
Institutional Investor Activity
Several institutional investors have adjusted their positions in Southern Copper recently. MJT & Associates Financial Advisory Group Inc. increased its stake by 65.1% during the third quarter, now holding 213 shares valued at approximately $26,000 after acquiring an additional 84 shares. Covestor Ltd also raised its holdings by 30.4%, owning 360 shares valued at $44,000 following a purchase of 84 shares in the same period.
Other investors, such as Avanza Fonder AB, increased their positions by 1.0%, now owning 8,663 shares worth about $1.05 million. Similarly, Redwood Wealth Management Group LLC and Powell Investment Advisors LLC reported incremental increases in their holdings, bringing their total shares to 5,999 and 9,637, respectively. Currently, institutional investors hold 7.94% of Southern Copper’s stock.
Recent Financial Performance and Dividend Announcement
As of the market opening on Friday, shares of Southern Copper were trading at $142.37. The stock has demonstrated a 50-day moving average of $134.60 and a 200-day moving average of $113.46. Over the past year, shares have fluctuated between a low of $74.84 and a high of $149.75. The company boasts a market capitalization of $115.63 billion and a price-to-earnings ratio of 29.85.
Southern Copper recently reported its quarterly earnings results on October 31, 2023. The company achieved earnings per share (EPS) of $1.35, exceeding the consensus estimate of $1.26 by $0.09. The firm recorded revenue of $3.38 billion, surpassing analyst expectations of $3.05 billion. With a return on equity of 38.74% and a net margin of 30.98%, analysts project an EPS of 4.66 for the current year.
In addition to its earnings report, Southern Copper announced a quarterly dividend of $0.90 per share, paid on November 28, 2023. This dividend reflects an annualized rate of $3.60 and a yield of 2.5%. The ex-dividend date was November 12, 2023, and the company’s dividend payout ratio currently stands at 75.47%.
Southern Copper Corporation is primarily engaged in the mining, exploration, smelting, and refining of copper and other minerals across several countries, including Peru, Mexico, Argentina, Ecuador, and Chile. The firm focuses on mining and processing various metals, including copper, molybdenum, zinc, silver, gold, and lead.
