Southern Copper (NYSE:SCCO) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday, Zacks.com reports. They currently have a $49.00 target price on the basic materials company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 8.70% from the stock’s current price.
According to Zacks, “Southern Copper has the largest copper reserves in the industry and operates high-quality, world-class assets. Backed by its constant commitment to increase low-cost production and growth investments, the company is well poised to continue delivering enhanced performance. Cost-reduction programs and expansion actions also poises it well for growth. Southern Copper’s project pipeline remains robust. Copper prices have been gaining driven by increase in demand from top consumer, China, and apprehensions of a shortage in supply owing to the COVID-19 pandemic. This bodes well for Southern Copper’s results. Thus, the estimates for the company’s current quarter earnings have gone up lately. However, resurgence of coronavirus cases might lead to further restrictions and closures, and impact the company’s operations and results.”
Several other research analysts also recently issued reports on the stock. JPMorgan Chase & Co. downgraded shares of Southern Copper from a “neutral” rating to an “underweight” rating and raised their price objective for the stock from $27.00 to $33.00 in a research report on Monday, June 22nd. Citigroup downgraded shares of Southern Copper from a “buy” rating to a “sell” rating in a report on Monday, June 8th. Morgan Stanley downgraded shares of Southern Copper from an “equal weight” rating to an “underweight” rating and lifted their target price for the company from $37.00 to $38.00 in a report on Tuesday, August 4th. Finally, Goldman Sachs Group downgraded shares of Southern Copper from a “buy” rating to a “neutral” rating and lowered their target price for the company from $47.00 to $41.00 in a report on Tuesday, June 16th. Four equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and one has issued a buy rating to the stock. Southern Copper presently has an average rating of “Hold” and a consensus target price of $38.57.
Southern Copper stock traded down $0.09 during midday trading on Tuesday, hitting $45.08. 11,917 shares of the company’s stock were exchanged, compared to its average volume of 864,233. Southern Copper has a 12-month low of $23.43 and a 12-month high of $49.19. The company has a debt-to-equity ratio of 0.95, a quick ratio of 3.23 and a current ratio of 4.33. The stock has a market cap of $34.92 billion, a price-to-earnings ratio of 29.66, a price-to-earnings-growth ratio of 2.17 and a beta of 1.14. The firm’s 50 day simple moving average is $46.21 and its 200 day simple moving average is $37.51.
Southern Copper (NYSE:SCCO) last issued its quarterly earnings data on Tuesday, July 28th. The basic materials company reported $0.34 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.27 by $0.07. Southern Copper had a net margin of 16.20% and a return on equity of 17.10%. The company had revenue of $1.79 billion for the quarter, compared to the consensus estimate of $1.22 billion. On average, equities research analysts forecast that Southern Copper will post 1.5 EPS for the current fiscal year.
In related news, Director Bonilla Luis Miguel Palomino sold 1,400 shares of the business’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $45.10, for a total transaction of $63,140.00. Following the sale, the director now owns 9,014 shares of the company’s stock, valued at $406,531.40. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.46% of the stock is currently owned by insiders.
A number of institutional investors and hedge funds have recently made changes to their positions in the business. Fisher Asset Management LLC raised its holdings in shares of Southern Copper by 31.5% during the second quarter. Fisher Asset Management LLC now owns 4,475,097 shares of the basic materials company’s stock worth $177,975,000 after purchasing an additional 1,071,165 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Southern Copper by 90.4% during the second quarter. Goldman Sachs Group Inc. now owns 1,716,839 shares of the basic materials company’s stock worth $68,279,000 after purchasing an additional 814,913 shares during the period. Morgan Stanley raised its holdings in shares of Southern Copper by 195.4% during the first quarter. Morgan Stanley now owns 1,126,056 shares of the basic materials company’s stock worth $31,710,000 after purchasing an additional 744,818 shares during the period. Wellington Management Group LLP raised its holdings in shares of Southern Copper by 167.9% during the first quarter. Wellington Management Group LLP now owns 516,468 shares of the basic materials company’s stock worth $14,544,000 after purchasing an additional 323,673 shares during the period. Finally, 1832 Asset Management L.P. acquired a new stake in shares of Southern Copper during the first quarter worth $7,253,000. Institutional investors own 6.94% of the company’s stock.
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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