Southern Copper (NYSE:SCCO) Stock Breaks Above 200-Day Moving Average – Should You Sell?

Southern Copper Corporation (NYSE:SCCO)’s stock price crossed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $187.16 and traded as high as $195.16. Southern Copper shares last traded at $194.3430, with a volume of 1,429,405 shares traded.

Wall Street Analyst Weigh In

A number of research analysts have commented on SCCO shares. Morgan Stanley restated an “underweight” rating and issued a $170.00 target price on shares of Southern Copper in a research note on Wednesday, October 7th. Barclays set a $165.00 price target on Southern Copper and gave the stock an “underweight” rating in a research note on Monday. CICC Research downgraded Southern Copper to a “market perform” rating in a research note on Sunday, July 26th. Wall Street Zen upgraded Southern Copper from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. Finally, Zacks Research cut Southern Copper from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 7th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and seven have assigned a Sell rating to the company. Based on data from MarketBeat.com, Southern Copper has an average rating of “Reduce” and a consensus target price of $160.95.

Southern Copper Trading Down 1.1%

The company has a fifty day simple moving average of $201.36 and a two-hundred day simple moving average of $187.47. The company has a debt-to-equity ratio of 0.63, a current ratio of 5.06 and a quick ratio of 4.56. The company has a market capitalization of $159.94 billion, a P/E ratio of 25.09, a price-to-earnings-growth ratio of 1.71 and a beta of 1.11.

Southern Copper shares are set to split on the morning of Tuesday, November 3rd. The 1.0106-1 split was recently announced. The newly created shares will be payable to shareholders after the closing bell on Monday, November 2nd.

Southern Copper (NYSE:SCCO) last released its quarterly earnings results on Wednesday, October 21st. The basic materials company reported $2.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.12. The company had revenue of $4.70 billion during the quarter, compared to the consensus estimate of $4.49 billion. Southern Copper had a return on equity of 53.46% and a net margin of 37.16%. During the same quarter in the prior year, the company posted $1.35 EPS. On average, analysts forecast that Southern Copper Corporation will post 8.03 earnings per share for the current fiscal year.

Southern Copper Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Tuesday, November 3rd will be issued a $1.30 dividend. This is an increase from Southern Copper’s previous quarterly dividend of $1.10. The ex-dividend date is Tuesday, November 3rd. This represents a $5.20 annualized dividend and a yield of 2.7%. Southern Copper’s dividend payout ratio is presently 57.59%.

Insider Transactions at Southern Copper

In other news, Director Luis Palomino Bonilla sold 202 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were 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 approximately $339,066.65. The trade was a 10.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold a total of 603 shares of company stock worth $120,213 over the last three months. 0.07% of the stock is owned by corporate insiders.

Institutional Trading of Southern Copper

Several large investors have recently modified their holdings of SCCO. 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 acquired a new stake in shares of Southern Copper in the second quarter valued at about $318,448,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Southern Copper by 2.2% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,290,648 shares of the basic materials company’s stock worth $224,908,000 after purchasing an additional 27,744 shares during the period. Bollard Group LLC increased its stake in shares of Southern Copper by 14.0% in the first quarter. Bollard Group LLC now owns 861,950 shares of the basic materials company’s stock worth $148,307,000 after purchasing an additional 105,763 shares during the period. Finally, Legal & General Group Plc bought a new position in shares of Southern Copper in the second quarter worth about $149,739,000. 7.94% of the stock is owned by institutional investors.

About Southern Copper

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.