Shares of Southern Copper Corporation (NYSE:SCCO) have garnered an average recommendation of “Reduce” from analysts covering the firm, according to a report by MarketBeat.com. This rating reflects a mix of opinions from thirteen research firms. Four analysts have assigned a sell rating, seven have given a hold rating, while two have issued a buy rating for the stock.
The average target price set by analysts for the upcoming year is approximately $122.83. Recent evaluations have varied significantly among firms. For instance, Morgan Stanley designated a target price of $138.00 for Southern Copper, coupled with an “underweight” rating in a report released on October 30. Meanwhile, Wall Street Zen upgraded its stance from hold to buy on December 6, indicating a more optimistic outlook.
In a separate analysis, Goldman Sachs Group reaffirmed a sell rating but adjusted its price objective for the stock to $115.00, an increase from a previous estimate of $89.00. On December 12, UBS Group also updated its rating, maintaining a neutral stance while raising the target price to $143.00 from $135.00. Citigroup reiterated a sell rating but increased its target to $108.00, up from $89.10.
Institutional Investment Activity
Institutional investors have shown notable activity regarding Southern Copper shares. For example, MJT & Associates Financial Advisory Group Inc. increased its stake by 65.1% in the third quarter, now holding 213 shares valued at approximately $26,000. Similarly, Covestor Ltd raised its holdings by 30.4%, bringing its total to 360 shares worth around $44,000.
Other notable increases include Avanza Fonder AB, which raised its position by 1.0%, owning 8,663 shares valued at $1,051,000, and Redwood Wealth Management Group LLC, which upped its stake by 1.5%, now holding 5,999 shares valued at $728,000. Institutional investors currently hold 7.94% of the company’s stock.
Current Stock Performance and Financial Results
On Friday, Southern Copper’s shares opened at $142.37. The company’s 50-day moving average stands at $134.60, while the 200-day moving average is $113.46. Over the past year, the stock reached a low of $74.84 and a high of $149.75. With a market capitalization of $115.63 billion, the company has a price-to-earnings ratio of 29.85 and a PEG ratio of 1.30.
Southern Copper recently reported its quarterly earnings results on October 31, 2023. The company posted earnings per share (EPS) of $1.35, surpassing analysts’ consensus estimate of $1.26 by $0.09. Revenue for the quarter totaled $3.38 billion, exceeding analyst expectations of $3.05 billion. The company achieved a return on equity of 38.74% and boasted a net margin of 30.98%. Analysts forecast that Southern Copper will report an EPS of $4.66 for the current year.
Additionally, the company announced a quarterly dividend of $0.90 per share, which was paid on November 28, 2023. Stockholders of record on November 12 received this dividend, translating to an annualized dividend of $3.60 and a yield of 2.5%. The ex-dividend date was also November 12, and Southern Copper’s current dividend payout ratio stands at 75.47%.
Southern Copper Corporation is engaged in mining, exploring, smelting, and refining copper and other minerals in countries including Peru, Mexico, Argentina, Ecuador, and Chile. The company operates across various stages of production, from the mining and milling of copper ore to the refining of copper cathodes and the production of molybdenum concentrate and sulfuric acid.
