Southern Copper (NYSE:SCCO) Shares Gap Down – Here’s What Happened

by · The Markets Daily

Southern Copper Corporation (NYSE:SCCO – Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $209.26, but opened at $196.83. Southern Copper shares last traded at $194.7930, with a volume of 389,602 shares.

Trending Headlines about Southern Copper

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

  • Positive Sentiment: Longer term, Southern Copper remains positioned to benefit from structural copper demand. AI data centers, power-grid upgrades and renewable-energy projects are increasing copper consumption while global mine output and concentrate production are declining. Southern Copper’s low-cost operations, 49.04% return on equity and approximately 2.1% dividend yield provide additional support. U.S.-Listed Copper Mining Stocks Fall as Copper Retreats From Record High
  • Positive Sentiment: The company’s latest quarterly results showed strong year-over-year momentum: earnings of $1.99 per share exceeded estimates of $1.93, while revenue rose 40.6% to $4.29 billion. These fundamentals could help SCCO benefit if elevated copper prices persist.
  • Neutral Sentiment: Director Luis Palomino Bonilla sold 100 shares for $21,000 at an average price of $210, reducing his holdings by 6.24%. The relatively small transaction is a modest sentiment signal, but it follows several prior sales and may attract investor attention. Insider Selling: Southern Copper Director Sells Stock
  • Negative Sentiment: Copper-mining stocks, including SCCO, Freeport-McMoRan and Teck Resources, are declining as reports cast doubt on the timing or viability of U.S. refined-copper tariffs. The reversal has weakened the scarcity trade and prompted investors to take profits after copper reached record levels. Copper Stocks Tumble as Tariff Doubt Reverses Record Rally
  • Negative Sentiment: Investor concerns are amplified by SCCO’s elevated valuation. Analysts’ consensus rating remains “Reduce,” with an average price target of $146.84, well below recent trading levels, leaving the stock vulnerable to further commodity-price volatility.

Analyst Ratings Changes

Several equities research analysts have commented on SCCO shares. Barclays set a $164.03 target price on Southern Copper and gave the company an “underweight” rating in a research note on Thursday, July 23rd. Scotiabank reissued an “underperform” rating and issued a $138.34 price objective (up from $133.40) on shares of Southern Copper in a research report on Monday, June 15th. Citigroup restated a “positive” rating on shares of Southern Copper in a report on Wednesday, July 15th. Wells Fargo & Company raised their target price on shares of Southern Copper from $168.97 to $169.96 and gave the company an “equal weight” rating in a research report on Thursday, July 9th. Finally, Wall Street Zen lowered shares of Southern Copper from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and seven have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus price target of $146.84.

Get Our Latest Research Report on SCCO

Southern Copper Trading Down 7.0%

The company has a market cap of $162.40 billion, a P/E ratio of 28.50, a P/E/G ratio of 1.92 and a beta of 1.14. The business’s 50-day moving average price is $189.67 and its 200 day moving average price is $184.30. The company has a debt-to-equity ratio of 0.63, a quick ratio of 4.56 and a current ratio of 5.06.

Southern Copper (NYSE:SCCO – Get Free Report) last issued its earnings results on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.93 by $0.06. Southern Copper had a net margin of 35.87% and a return on equity of 49.04%. The company had revenue of $4.29 billion for the quarter, compared to analysts’ expectations of $4.37 billion. The firm’s revenue was up 40.6% on a year-over-year basis. As a group, analysts expect that Southern Copper Corporation will post 7.59 earnings per share for the current year.

Southern Copper Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Tuesday, August 11th were paid a $1.10 dividend. This is a positive change from Southern Copper’s previous quarterly dividend of $1.00. This represents a $4.40 annualized dividend and a yield of 2.3%. The ex-dividend date was Tuesday, August 11th. Southern Copper’s dividend payout ratio is currently 64.33%.

Insider Activity

In other news, Director Luis Palomino Bonilla sold 202 shares of the firm’s stock in a transaction that occurred 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 sale, 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 filing with the SEC, which is available at this link. Insiders sold 604 shares of company stock valued at $118,077 over the last ninety days. Company insiders own 0.07% of the company’s stock.

Institutional Investors Weigh In On Southern Copper

Large investors have recently added to or reduced their stakes in the business. Bell Investment Advisors Inc acquired a new position in shares of Southern Copper in the second quarter valued at $26,000. Rakuten Securities Inc. acquired a new position in Southern Copper in the 2nd quarter valued at about $28,000. SHP Wealth Management bought a new position in Southern Copper in the 4th quarter valued at about $25,000. Lloyd Advisory Services LLC. bought a new position in Southern Copper in the 4th quarter valued at about $29,000. Finally, Virtus Advisers LLC acquired a new stake in Southern Copper during the fourth quarter worth approximately $29,000. Institutional investors own 7.94% of the company’s stock.

About Southern Copper

(Get Free Report)

Southern Copper Corporation (NYSE: SCCO) is an integrated copper producer engaged in the exploration, mining, processing, smelting and refining of minerals. The company produces copper in the form of cathodes, concentrates and anodes, along with byproducts including molybdenum, zinc, silver, lead and sulfuric acid.

Southern Copper operates mining and processing facilities in Mexico and Peru. Its principal Mexican operations include the Buenavista del Cobre and La Caridad mining complexes, while its Peruvian operations include the Toquepala and Cuajone mines and the Ilo smelter and refinery.

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