Southern Copper (NYSE:SCCO) Trading Up 7.5% – Should You Buy?

Shares of Southern Copper Corporation (NYSE:SCCO) rose 7.5% during trading on Tuesday . The stock traded as high as $207.42 and last traded at $207.2260. Approximately 262,245 shares traded hands during trading, a decline of 89% from the average daily volume of 2,467,407 shares. The stock had previously closed at $192.80.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on SCCO shares. Wall Street Zen cut Southern Copper from a “buy” rating to a “hold” rating in a research note on Saturday. Morgan Stanley reaffirmed an “underweight” rating and issued a $156.00 price target on shares of Southern Copper in a research note on Friday. Wells Fargo & Company set a $192.00 price objective on Southern Copper and gave the company an “equal weight” rating in a research note on Thursday, January 29th. The Goldman Sachs Group reiterated a “sell” rating and set a $129.00 price target on shares of Southern Copper in a report on Wednesday, January 14th. Finally, JPMorgan Chase & Co. reaffirmed an “underweight” rating and set a $117.50 price objective (down from $119.50) on shares of Southern Copper in a research note on Friday, January 23rd. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and seven have issued a Sell rating to the company. According to data from MarketBeat, Southern Copper presently has an average rating of “Reduce” and an average price target of $137.65.

Southern Copper Stock Performance

The company has a 50-day simple moving average of $157.91 and a two-hundred day simple moving average of $129.47. The company has a debt-to-equity ratio of 0.64, a quick ratio of 3.91 and a current ratio of 4.52. The firm has a market capitalization of $168.63 billion, a P/E ratio of 43.50, a PEG ratio of 1.61 and a beta of 1.06.

Southern Copper shares are scheduled to split on Tuesday, February 10th. The 1.0085-1 split was recently announced. The newly created shares will be issued to shareholders after the closing bell on Monday, February 9th.

Southern Copper Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Tuesday, February 10th will be given a dividend of $1.00 per share. This is an increase from Southern Copper’s previous quarterly dividend of $0.90. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $4.00 dividend on an annualized basis and a yield of 1.9%. Southern Copper’s dividend payout ratio is 83.86%.

Insiders Place Their Bets

In other Southern Copper news, Director Bonilla Luis Miguel Palomino sold 400 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $139.00, for a total transaction of $55,600.00. Following the completion of the transaction, the director owned 1,265 shares of the company’s stock, valued at approximately $175,835. This trade represents a 24.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders have sold a total of 648 shares of company stock valued at $90,070 in the last 90 days. 0.07% of the stock is currently owned by corporate insiders.

Institutional Trading of Southern Copper

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Hopwood Financial Services Inc. bought a new stake in Southern Copper in the third quarter worth $25,000. MJT & Associates Financial Advisory Group Inc. boosted its stake in Southern Copper by 65.1% in the 3rd quarter. MJT & Associates Financial Advisory Group Inc. now owns 213 shares of the basic materials company’s stock worth $26,000 after purchasing an additional 84 shares in the last quarter. Tobam bought a new position in Southern Copper in the 2nd quarter worth about $29,000. United Community Bank purchased a new stake in Southern Copper during the 3rd quarter valued at about $30,000. Finally, Caitlin John LLC bought a new stake in Southern Copper during the 3rd quarter valued at about $30,000. Hedge funds and other institutional investors own 7.94% of the company’s stock.

Southern Copper Company Profile

Southern Copper Corporation (NYSE: SCCO) is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.

Southern Copper’s operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.