Shares of Southern Copper Corporation (NYSE:SCCO) have received a collective recommendation of “Reduce” from thirteen research firms currently analyzing the company. According to MarketBeat.com, the ratings include four “sell” recommendations, seven “hold” ratings, and two “buy” ratings. The average target price set by analysts for the stock is approximately $122.83 for the next year.
Several notable investment firms have recently updated their assessments of Southern Copper. On October 29, 2023, The Goldman Sachs Group maintained a “sell” rating while increasing its price target from $89.00 to $115.00. In contrast, Morgan Stanley set a target price of $138.00 and assigned an “underweight” rating in a report released on October 31, 2023.
Additionally, on December 6, 2023, Wall Street Zen upgraded its rating from “hold” to “buy.” On December 12, 2023, UBS Group reaffirmed its “neutral” rating and adjusted its target price to $143.00, up from $135.00. On the other hand, Citigroup also reiterated a “sell” rating, increasing its target price from $89.10 to $108.00.
Institutional Investments and Company Performance
Recent institutional trading activity highlights a shift in investor sentiment towards Southern Copper. MJT & Associates Financial Advisory Group Inc. increased its stake by 65.1% in the third quarter, now holding 213 shares valued at $26,000. Similarly, Covestor Ltd raised its holdings by 30.4%, owning 360 shares worth $44,000 after acquiring additional shares. Other firms, including Avanza Fonder AB and Redwood Wealth Management Group LLC, also increased their positions, reflecting varying degrees of confidence in the company’s future.
As of October 31, 2023, Southern Copper reported earnings of $1.35 per share (EPS), surpassing analysts’ expectations of $1.26. Revenue for the quarter reached $3.38 billion, exceeding the consensus estimate of $3.05 billion. The company recorded a return on equity of 38.74% and a net margin of 30.98%. Analysts anticipate that Southern Copper will achieve an EPS of 4.66 for the current fiscal year.
The company also recently announced a quarterly dividend of $0.90 per share, which was disbursed on November 28, 2023. Shareholders on record as of November 12, 2023 received this dividend, equating to an annualized dividend of $3.60 and a yield of 2.5%. The ex-dividend date was the same, November 12, 2023. Southern Copper’s current dividend payout ratio stands at 75.47%.
Market Overview and Stock Performance
Southern Copper shares opened at $142.37 on the latest trading day, reflecting a 0.6% increase. The stock’s 50-day moving average is $134.60, while the 200-day moving average is $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, with a price-to-earnings ratio of 29.85 and a PEG ratio of 1.30. Southern Copper maintains a debt-to-equity ratio of 0.64, along with a current ratio of 4.52 and a quick ratio of 3.91.
Southern Copper Corporation is involved in the mining, smelting, and refining of copper and other minerals across several countries, including Peru, Mexico, Argentina, Ecuador, and Chile. Its operations encompass various stages of production, from mining and milling to refining and processing of multiple minerals.
As the company navigates a challenging market, the mixed ratings from analysts will likely influence investor sentiment and future stock performance.
