Southern Copper (NYSE:SCCO) Hits New 1-Year High – Time to Buy?

Southern Copper Corporation (NYSE:SCCO) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $151.86 and last traded at $150.9960, with a volume of 11584 shares changing hands. The stock had previously closed at $148.13.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on SCCO shares. HSBC reissued a “hold” rating and set a $118.00 price objective (up from $105.00) on shares of Southern Copper in a research note on Friday, October 17th. Jefferies Financial Group set a $155.00 price objective on Southern Copper and gave the company a “buy” rating in a research note on Monday, October 6th. Citigroup restated a “sell” rating and set a $108.00 target price (up previously from $89.10) on shares of Southern Copper in a research report on Wednesday, October 8th. Wall Street Zen upgraded Southern Copper from a “hold” rating to a “buy” rating in a report on Sunday. Finally, JPMorgan Chase & Co. raised their price objective on Southern Copper from $114.50 to $119.50 and gave the stock a “neutral” rating in a report on Thursday, December 18th. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $123.85.

Southern Copper Price Performance

The company has a market capitalization of $121.42 billion, a PE ratio of 31.34, a PEG ratio of 1.38 and a beta of 1.07. The company has a current ratio of 4.52, a quick ratio of 3.91 and a debt-to-equity ratio of 0.64. The company’s 50 day moving average price is $136.61 and its 200-day moving average price is $115.79.

Southern Copper (NYSE:SCCO) last issued its earnings results on Friday, October 31st. The basic materials company reported $1.35 earnings per share for the quarter, topping the consensus estimate of $1.26 by $0.09. Southern Copper had a return on equity of 38.74% and a net margin of 30.98%.The business had revenue of $3.38 billion for the quarter, compared to analyst estimates of $3.05 billion. On average, sell-side analysts forecast that Southern Copper Corporation will post 4.66 earnings per share for the current fiscal year.

Southern Copper Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, November 28th. Stockholders of record on Wednesday, November 12th were paid a $0.90 dividend. This represents a $3.60 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Wednesday, November 12th. Southern Copper’s payout ratio is currently 75.47%.

Insider Activity

In related news, Director Bonilla Luis Miguel Palomino sold 400 shares of the 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 sale, the director owned 1,265 shares of the company’s stock, valued at approximately $175,835. This represents a 24.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last three months, insiders sold 948 shares of company stock worth $131,130. 0.07% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Southern Copper

A number of large investors have recently modified their holdings of the stock. Legal & General Group Plc raised its holdings in shares of Southern Copper by 4.3% in the 2nd quarter. Legal & General Group Plc now owns 941,712 shares of the basic materials company’s stock worth $95,273,000 after purchasing an additional 38,856 shares in the last quarter. Nordea Investment Management AB boosted its holdings in Southern Copper by 6.5% during the second quarter. Nordea Investment Management AB now owns 140,489 shares of the basic materials company’s stock worth $14,326,000 after buying an additional 8,531 shares in the last quarter. SBI Securities Co. Ltd. grew its position in Southern Copper by 82.5% in the second quarter. SBI Securities Co. Ltd. now owns 5,085 shares of the basic materials company’s stock worth $514,000 after buying an additional 2,298 shares during the last quarter. Edgestream Partners L.P. acquired a new position in Southern Copper in the second quarter worth approximately $5,436,000. Finally, Capital Advisors Inc. OK increased its holdings in shares of Southern Copper by 1.3% in the second quarter. Capital Advisors Inc. OK now owns 277,035 shares of the basic materials company’s stock valued at $28,028,000 after buying an additional 3,449 shares in the last quarter. Institutional investors and hedge funds own 7.94% of the company’s stock.

About Southern Copper

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.