Southern Copper Corporation $SCCO Shares Sold by Powell Investment Advisors LLC

Powell Investment Advisors LLC trimmed its holdings in shares of Southern Copper Corporation (NYSE:SCCO) by 51.2% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,833 shares of the basic materials company’s stock after selling 5,065 shares during the period. Powell Investment Advisors LLC’s holdings in Southern Copper were worth $979,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the business. SHP Wealth Management purchased a new position in shares of Southern Copper in the 4th quarter worth about $25,000. Bell Investment Advisors Inc bought a new position in Southern Copper during the second quarter valued at about $26,000. Rakuten Securities Inc. purchased a new stake in Southern Copper during the second quarter worth about $28,000. Pin Oak Investment Advisors Inc. purchased a new stake in Southern Copper during the second quarter worth about $30,000. Finally, Compass Financial Management LLC purchased a new stake in Southern Copper during the second quarter worth about $41,000. 7.94% of the stock is currently owned by institutional investors.

Southern Copper News Roundup

Here are the key news stories impacting Southern Copper this week:

• Positive Sentiment: Record Q3 performance: Third-quarter sales rose 39.1% year over year to $4.70 billion, while net income increased 62.7% to $1.80 billion, or $2.15 per share. Earnings and revenue exceeded analyst expectations. Operating cash flow also rose 42.6% to $2.22 billion. Southern Copper Posts Record $4.7 Billion Third-Quarter Sales
• Positive Sentiment: Shareholder returns and growth plans: The board approved a $1.30 quarterly dividend and a 1.06% stock dividend. Southern Copper is also targeting annual production of one million tonnes and is weighing a roughly $680 million expansion of its Cuajone mine, which could support longer-term output growth. Southern Copper weighs $680M Cuajone mine expansion
• Neutral Sentiment: Upcoming stock split: SCCO is scheduled to distribute 0.0106 additional shares per share after the November 2 close, with trading on a split-adjusted basis expected to begin November 3. The action may improve trading accessibility but does not by itself change the company’s fundamental value. Southern Copper Shares Set to Split
• Negative Sentiment: Valuation and execution concerns: Bank of America maintained a Sell rating, citing SCCO’s rich valuation and delays or uncertainty surrounding growth projects. Copper production fell 1.1% year over year to 232,396 tonnes, making recent earnings more dependent on higher metal prices. Southern Copper: Record Results but Rich Valuation and Project Delays
• Negative Sentiment: Profit-taking risk: Reports of insider transactions show selling rather than purchases over the past six months, while the stock’s elevated valuation may be encouraging investors to lock in gains after its strong run.

Analyst Ratings Changes

Several brokerages have commented on SCCO. CICC Research lowered shares of Southern Copper to a “market perform” rating in a research report on Sunday, July 26th. Wall Street Zen raised shares of Southern Copper from a “hold” rating to a “buy” rating in a research report on Saturday, October 10th. UBS Group restated a “sell” rating and set a $180.00 price target (up from $160.00) on shares of Southern Copper in a research note on Thursday, October 8th. Zacks Research cut shares of Southern Copper from a “strong-buy” rating to a “hold” rating in a report on Friday, August 7th. Finally, Morgan Stanley reaffirmed an “underweight” rating and issued a $170.00 price target on shares of Southern Copper in a report on Wednesday, October 7th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and seven have given a Sell rating to the stock. According to MarketBeat.com, Southern Copper has an average rating of “Reduce” and an average target price of $160.95.

Southern Copper Stock Performance

Shares of SCCO stock opened at $183.03 on Friday. The stock has a market capitalization of $152.70 billion, a P/E ratio of 26.76, a PEG ratio of 1.84 and a beta of 1.11. The company has a current ratio of 5.06, a quick ratio of 4.56 and a debt-to-equity ratio of 0.63. The firm’s 50 day moving average is $201.48 and its 200 day moving average is $188.16. Southern Copper Corporation has a 12 month low of $119.25 and a 12 month high of $223.88.

Southern Copper’s stock is scheduled to split before the market opens on Tuesday, November 3rd. The 1.0106-1 split was recently announced. The newly created shares will be distributed to shareholders after the market closes on Monday, November 2nd.

Southern Copper (NYSE:SCCO) last released its quarterly earnings data on Wednesday, October 21st. The basic materials company reported $2.15 earnings per share for the quarter, beating analysts’ consensus estimates of $2.02 by $0.13. Southern Copper had a net margin of 37.16% and a return on equity of 53.46%. The business had revenue of $4.70 billion during the quarter, compared to analyst estimates of $4.49 billion. On average, sell-side analysts anticipate that Southern Copper Corporation will post 7.97 earnings per share for the current year.

Southern Copper Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Tuesday, November 3rd will be given a dividend of $1.30 per share. This is an increase from Southern Copper’s previous quarterly dividend of $1.10. This represents a $5.20 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Tuesday, November 3rd. Southern Copper’s dividend payout ratio (DPR) is currently 64.33%.

Insider Activity at Southern Copper

In other news, Director Luis Palomino Bonilla sold 202 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $196.79, for a total value of $39,751.28. Following the completion of the transaction, the director directly owned 1,723 shares of the company’s stock, valued at $339,066.65. This trade represents a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 603 shares of company stock valued at $120,213 over the last three months. 0.07% of the stock is owned by company insiders.

Southern Copper Profile

Southern Copper Corporation (NYSE:SCCO) is a mining and metals company engaged primarily in the exploration, development, extraction, processing and production of copper. The company also produces molybdenum, zinc, silver and lead, along with related byproducts. Its operations include open-pit mines, underground mines, concentrators, smelters, refineries and other processing facilities.

Southern Copper operates mainly in Peru and Mexico. Its Peruvian assets include the Toquepala and Cuajone copper mines, while its Mexican operations include the Buenavista del Cobre and La Caridad mines, as well as associated processing and infrastructure facilities.