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

Southern Copper Corporation (NYSE:SCCO)’s stock price 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 changing hands.

More Southern Copper News

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

• Positive Sentiment: Southern Copper retains a favorable long-term outlook because tight mine supply could benefit producers if demand from artificial-intelligence data centers, power-grid upgrades and renewable infrastructure remains strong. The company also recently raised its quarterly dividend to $1.10 per share, or $4.40 annualized. Copper demand and Southern Copper outlook
• Positive Sentiment: Recent earnings momentum remains supportive: Southern Copper reported quarterly EPS of $1.99, exceeding the $1.93 consensus estimate, while revenue increased 40.6% year over year. Zacks continues to identify SCCO as a momentum stock for longer-term investors. Southern Copper momentum analysis
• Neutral Sentiment: Director Luis Palomino Bonilla sold 100 shares for approximately $21,000 at $210 per share, reducing his position by 6.24%. The sale follows several earlier disposals but leaves him with 1,503 shares, making the latest transaction relatively small. Southern Copper insider sale
• Negative Sentiment: Copper’s retreat and uncertainty over refined-copper tariffs pressured SCCO and peer miners. Elevated prices may also be curbing demand, with Chinese imports reportedly at a six-year low for August. Copper miners tariff-related decline
• Negative Sentiment: Valuation adds downside risk: SCCO trades near 28 times earnings, while the analyst consensus is “Reduce” with an average price target of about $146.84, well below recent trading levels. Southern Copper analyst forecast

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SCCO. JPMorgan Chase & Co. raised their price objective on shares of Southern Copper from $125.49 to $129.94 and gave the stock an “underweight” rating in a research note on Wednesday, June 17th. UBS Group reaffirmed a “sell” rating and set a $158.10 target price (up from $143.28) on shares of Southern Copper in a research note on Tuesday, June 30th. Citigroup reiterated a “positive” rating on shares of Southern Copper in a report on Wednesday, July 15th. CICC Research lowered Southern Copper to a “market perform” rating in a research note on Sunday, July 26th. Finally, Scotiabank restated an “underperform” rating and set a $138.34 price objective (up from $133.40) on shares of Southern Copper in a report on Monday, June 15th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and seven have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $146.84.

Southern Copper Stock Down 0.5%

The business’s fifty day moving average is $190.63 and its two-hundred day moving average is $184.33. The company has a market cap of $161.21 billion, a P/E ratio of 28.25, a price-to-earnings-growth ratio of 1.73 and a beta of 1.14. 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) last released its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $1.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.93 by $0.06. The company had revenue of $4.29 billion during the quarter, compared to analysts’ expectations of $4.37 billion. Southern Copper had a net margin of 35.87% and a return on equity of 49.04%. Southern Copper’s revenue for the quarter was up 40.6% on a year-over-year basis. Equities analysts predict that Southern Copper Corporation will post 7.83 EPS for the current year.

Southern Copper Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 11th were paid a dividend of $1.10 per share. This is an increase from Southern Copper’s previous quarterly dividend of $1.00. This represents a $4.40 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Tuesday, August 11th. Southern Copper’s payout ratio is 64.33%.

Insider Buying and Selling at Southern Copper

In related news, Director Luis Palomino Bonilla sold 202 shares of Southern Copper stock in a transaction dated 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 in the company, valued at $339,066.65. The trade was a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders sold 604 shares of company stock valued at $118,077 in the last ninety days. Insiders own 0.07% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SCCO. California State Teachers Retirement System raised its position in shares of Southern Copper by 8,035.9% in the 2nd quarter. California State Teachers Retirement System now owns 20,545,080 shares of the basic materials company’s stock worth $3,580,186,000 after acquiring an additional 20,292,556 shares in the last quarter. BlackRock Inc. bought a new stake in Southern Copper during the second quarter valued at about $1,729,500,000. Bank of America Corp DE bought a new stake in Southern Copper during the second quarter valued at about $318,448,000. Legal & General Group Plc purchased a new position in Southern Copper in the second quarter valued at about $149,739,000. Finally, Norges Bank purchased a new position in Southern Copper in the fourth quarter valued at about $97,645,000. Hedge funds and other institutional investors own 7.94% of the company’s stock.

Southern Copper Company Profile

Southern Copper Corporation (NYSE: SCCO) is 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.