On September 6, 2023, it was reported that Korea Investment CORP has increased its stake in Southern Copper Co. (NYSE:SCCO) by 30.2% during the first quarter of the year. According to the company’s most recent Form 13F filing with the Securities and Exchange Commission (SEC), Korea Investment CORP now owns 34,030 shares of Southern Copper’s stock, after purchasing an additional 7,900 shares during the period. The value of Korea Investment CORP’s holdings in Southern Copper was estimated to be $2,595,000 as of its most recent SEC filing.
Southern Copper recently released its quarterly earnings results on August 1st. The basic materials company reported earnings per share of $0.71 for the quarter, which fell below analysts’ consensus estimates by ($0.05). Despite this shortfall, Southern Copper demonstrated a strong return on equity at 34.86% and a net margin of 27.62%. The company generated $2.30 billion in revenue for the quarter compared to analyst estimates of $2.37 billion. Analysts predict that Southern Copper will post earnings per share of 3.61 for the current year.
Several research firms have commented on SCCO recently. Morgan Stanley raised their price target on Southern Copper from $67.00 to $74.00 in a research note released on June 21st. On May 9th, The Goldman Sachs Group downgraded Southern Copper from a “neutral” rating to a “sell” rating while also raising their price target from $65 to $66 citing concerns about the stock’s performance. StockNews.com initiated coverage on Southern Copper with a “buy” rating on August 17th. JPMorgan Chase & Co., meanwhile, raised their price target from $52.50 to $55.50 and issued an “underweight” rating on August 17th. Currently, four equities research analysts have issued a sell rating, three hold ratings, and two buy ratings for the company’s stock. According to Bloomberg.com, Southern Copper currently has a consensus rating of “Hold” and a consensus price target of $61.94.
These recent developments in Korea Investment CORP’s stake in Southern Copper Co., as well as the company’s quarterly earnings performance and analyst ratings, provide valuable insights into the state of affairs for investors considering involvement with Southern Copper.
Southern Copper Corporation
SCCO
Strong Buy
Updated on: 05/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Buy
Innstitutional Investors Show Strong Confidence in Southern Copper Co.’s Growth Prospects
Southern Copper Co. (SCCO) has recently seen several institutional investors and hedge funds make significant modifications to their holdings of the company’s stock. Price T Rowe Associates Inc. MD increased its position in SCCO by an astonishing 200.6% during the second quarter, now owning over 4 million shares valued at $208,201,000. Mawer Investment Management Ltd., on the other hand, saw its stake in Southern Copper surge by a remarkable 761.9% in the first quarter, currently holding approximately 2.7 million shares worth $210,186,000.
Another major player in the financial market that demonstrated a noteworthy increase in its stake in Southern Copper is abrdn plc, which reported a surge of 134.8% during the same period and now holds around 2.7 million shares worth $206,051,000. Similarly, Goldman Sachs Group Inc. witnessed a significant boost in its stake with a growth of 43.3%, increasing its holdings to approximately 2.8 million shares valued at $209,759,000.
Not to be left behind in this trend of amplified positions is BlackRock Inc., whose stake grew by a solid 10.7%. The company now possesses over 7 million shares worth $532,978,000.
These impressive moves reflect the overall bullish sentiment surrounding Southern Copper and highlight the confidence institutional investors have placed on its positive growth prospects.
In terms of recent insider activity within the company itself, Director Bonilla Luis Miguel Palomino completed two transactions involving the sale of Southern Copper stock earlier this year. The first transaction took place on June 12th when Palomino sold 500 shares at an average price of $70.21 per share for a total transaction value of $35,105. The director sold another batch of 500 shares during the same day at the same average price.
Furthermore, Director Sanchez Mejorada Enri Castillo sold 2,400 shares on August 14th at an average price of $81.56 per share, resulting in a total transaction value of $195,744.
These insider transactions indicate that both Palomino and Sanchez Mejorada have decided to reduce their personal holdings in Southern Copper. However, it’s important to note that these sales are relatively small compared to the overall position of the company.
Southern Copper stock opened at $79.30 on September 6, 2023. The company has a current ratio of 4.50 and a quick ratio of 3.57, indicating its strength in meeting short-term obligations. With a debt-to-equity ratio of 0.79, it suggests that Southern Copper is using moderate leverage in its operations.
The stock maintains a 50-day simple moving average of $78.84 and a 200-day simple moving average of $75.36, reflecting its recent stability within the market.
With a market capitalization standing at $61.31 billion, Southern Copper continues to be recognized as one of the leading players in the basic materials sector.
Given its industry-leading performance and positive outlook for future growth, SCCO remains an attractive investment option for both institutional investors and traders alike. As always, potential investors should conduct thorough research and analysis before making any investment decisions.
In conclusion, Southern Copper Co.’s recent developments within its stakeholder base highlight the strong confidence that institutional investors have placed on its growth prospects. Additionally, insider activity demonstrates some reduced personal holdings among key figures in the company but without raising any major concerns about its overall position or performance. Overall market indicators reveal positive investor sentiment towards SCCO’s stability and potential for continued success in the future.
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