Zacks Investment Research upgraded shares of Southern Copper (NYSE:SCCO) from a hold rating to a strong-buy rating in a research note issued to investors on Wednesday, Zacks.com reports. Zacks Investment Research currently has $46.00 price target on the basic materials company’s stock.
According to Zacks, “Southern Copper has the largest copper reserves in the industry and operates high-quality, world-class assets in investment grade countries, such as Mexico and Peru. However, its operations are likely to be impacted as these countries have imposed restrictions in order to curb the spread of coronavirus. The global slowdown in manufacturing activity weighed on copper prices this year. Even though copper prices have picked up lately on signs of economic recovery, it remains to be seen whether it will be sustained given the surging coronavirus cases. Nevertheless, it will continue to benefit from cost-reduction programs and expansion actions. The company’s project pipeline remains solid. Despite the current weakness, metal prices will eventually pick up in the long term on account of the impending demand-supply imbalance.”
A number of other equities analysts have also commented on SCCO. UBS Group raised their price target on shares of Southern Copper from $38.00 to $40.00 and gave the stock a buy rating in a research report on Tuesday, May 19th. Citigroup lowered shares of Southern Copper from a buy rating to a sell rating in a research report on Monday, June 8th. Goldman Sachs Group lowered shares of Southern Copper from a buy rating to a neutral rating and lowered their price target for the stock from $47.00 to $41.00 in a research report on Tuesday, June 16th. Finally, JPMorgan Chase & Co. lowered shares of Southern Copper from a neutral rating to an underweight rating and raised their price target for the stock from $27.00 to $33.00 in a research report on Monday, June 22nd. Three investment analysts have rated the stock with a sell rating, five have given a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The company has a consensus rating of Hold and an average target price of $37.75.
NYSE SCCO opened at $43.71 on Wednesday. The firm has a 50-day moving average of $40.10 and a 200-day moving average of $36.01. The company has a debt-to-equity ratio of 0.97, a quick ratio of 2.21 and a current ratio of 2.98. The stock has a market cap of $33.79 billion, a PE ratio of 28.76, a P/E/G ratio of 2.49 and a beta of 1.08. Southern Copper has a 52-week low of $23.43 and a 52-week high of $46.15.
Southern Copper (NYSE:SCCO) last released its quarterly earnings results on Tuesday, July 28th. The basic materials company reported $0.34 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.07. Southern Copper had a net margin of 16.20% and a return on equity of 17.12%. The business had revenue of $1.79 billion for the quarter, compared to analyst estimates of $1.22 billion. As a group, analysts predict that Southern Copper will post 1.36 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Wednesday, August 12th will be issued a $0.40 dividend. This is a positive change from Southern Copper’s previous quarterly dividend of $0.20. This represents a $1.60 annualized dividend and a yield of 3.66%. The ex-dividend date of this dividend is Tuesday, August 11th. Southern Copper’s dividend payout ratio (DPR) is currently 41.67%.
A number of hedge funds have recently added to or reduced their stakes in SCCO. State Street Corp boosted its position in Southern Copper by 5.8% during the 1st quarter. State Street Corp now owns 3,917,300 shares of the basic materials company’s stock worth $110,311,000 after buying an additional 215,432 shares during the period. Personal Capital Advisors Corp lifted its position in shares of Southern Copper by 3.6% during the 1st quarter. Personal Capital Advisors Corp now owns 1,250,375 shares of the basic materials company’s stock valued at $35,321,000 after acquiring an additional 43,676 shares during the period. Parametric Portfolio Associates LLC lifted its position in shares of Southern Copper by 11.1% during the 1st quarter. Parametric Portfolio Associates LLC now owns 1,222,756 shares of the basic materials company’s stock valued at $34,433,000 after acquiring an additional 121,803 shares during the period. Norges Bank acquired a new position in shares of Southern Copper during the 4th quarter valued at $49,724,000. Finally, Morgan Stanley lifted its position in shares of Southern Copper by 195.4% during the 1st quarter. Morgan Stanley now owns 1,126,056 shares of the basic materials company’s stock valued at $31,710,000 after acquiring an additional 744,818 shares during the period. 6.88% of the stock is currently owned by hedge funds and other 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 and lead.
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