Buying Southern Copper Corporation (SCCO) Stock Is A Smart Move Today?

Southern Copper Corporation (NYSE:SCCO) finished Thursday with an addition of $0.27 to close at $75.97, an upside of 0.36 percent. An average of 1,802,080 shares of common stock have been traded in the last five days. There was a gain of $7.99 in the past week, and it reached a new high 11 times over the past 12 months. The last 20 days have seen an average of 1,224,510 shares traded, while the 50-day average volume stands at 1,314,396.

SCCO stock has increased by 25.17% in the last month. The company shares reached their 1-month lowest point of $59.15 on 12/19/22. With the stock rallying to its 52-week high on 01/13/23, shares of the company touched a low of $42.42 and a high of $79.32 in 52 weeks. It has reached a new high 9 times so far this year and achieved 25.35% or $15.00 in price. In spite of this, the price is down -4.22% from the 52-week high.

Insider Transactions

SCCO stock investors should be aware that Southern Copper Corporation (SCCO) stock had its last reported insider trading activity 308 days ago on Mar 11. In this transaction, the insider spent $14,987,600. Chairman of the Board, VELASCO GERMAN LARREA MOTA, disposed of 100,000 shares at a price of $74.97 on Mar 10. The insider now owns more than $7,497,300 worth of shares. Prior to that, Chairman of the Board VELASCO GERMAN LARREA MOTA went on to Sale 50,000 shares at $74.87 each on Mar 09. An amount of $3,743,350 was transacted.

Valuation Metrics

Southern Copper Corporation (SCCO) has a trailing price-to-earnings (P/E) ratio of 22.78. The stock’s beta is 1.13. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 5.60, the price-to-book (PB) ratio at 7.73.

The company has a payout ratio of 120.40%. The company’s most recent quarterly dividend payment was $0.50 a share, representing a down of -33.33% from $0.75 last year. Its latest decrease dividend $0.25 reported on Thursday October 20 2022.

Financial Health

The quick ratio of Southern Copper Corporation for the three months ended September 29 was 2.60, and the current ratio was 3.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.83 and a total debt to equity ratio of 0.87 for the quarter ending September 29. Its gross profit as reported stood at $7.04 billion compared to revenue of $10.93 billion.

Earnings Surprise

For the three-month period that ended September 29, Southern Copper Corporation had $0.3 million in cash and short-term investments compared to $6.25 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $519.0 million in the quarter, while revenues of $432.3 million were shrunk -67.17%. The analyst consensus anticipated Southern Copper Corporation’s latest quarter earnings to come in at $0.59 per share, but it turned out to be $0.67, a 13.60% surprise. For the quarter, EBITDA amounted to $979.2 million. Shareholders own equity worth $773.1 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Southern Copper Corporation (SCCO) price momentum. RSI 9-day as of the close on 12 January was 86.45%, suggesting the stock is Overbought, with historical volatility in this time frame at 19.90%.

As of today, SCCO’s price is $73.12 +11.85% or $7.99 from its 5-day moving average. SCCO is currently trading +23.01% higher than its 20-day SMA and +58.08% higher than its 100-day SMA. However, the stock’s current price level is +50.75% above the SMA50 and -1.36% below the SMA200.

The stochastic %K and %D were 95.33% and 95.92%, respectively, and the average true range (ATR) was 2.12. With the 14-day stochastic at 92.79% and the average true range at 2.02, the RSI (14) stands at 81.39%. The stock has reached 5.68 on the 9-day MACD Oscillator while the 14-day reading was at 8.50.

Analyst Ratings

Wolfe Research upgraded Southern Copper Corporation (NYSE: SCCO) to a a Peer perform rating in its most recent analyst report. Previously, the stock was rated as an Underperform. The consensus rating for Southern Copper Corporation (SCCO) among analysts is Underweight. According to current brokerage recommendations, 7 brokerage firms advise that investors sell SCCO, while 7 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is SCCO’s price target for the next 12 months?

Analysts predict a range of price targets between $36.00 and $72.50, with a median target of $50.00. Taking a look at these predictions, the average price target given by analysts for Southern Copper Corporation (SCCO) stock is $54.19.

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