Southern Copper Corporation (SCCO) Shares: Are They Risky Or Cheap?

Southern Copper Corporation (NYSE:SCCO) finished Friday with a subtraction of -$0.39 to close at $47.91, a downside of -0.81 percent. An average of 1,725,160 shares of common stock have been traded in the last five days. There was a gain of $3.07 in the past week, and it reached a new high 15 times over the past 12 months. The last 20 days have seen an average of 1,467,130 shares traded, while the 50-day average volume stands at 1,457,410.

SCCO stock has increased by 1.27% in the last month. The company shares reached their 1-month lowest point of $42.42 on 09/26/22. With the stock rallying to its 52-week high on 04/04/22, 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 17 times so far this year and lost -22.36% or -$13.80 in price. In spite of this, the price is down -39.60% from the 52-week high.

Insider Transactions

211 days have passed since Southern Copper Corporation (SCCO) last reported insider trading activity. VELASCO GERMAN LARREA MOTA, who is Chairman of the Board, most recently acquired $200,000 shares at $74.94 per share 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 12.69. The stock’s beta is 1.12. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.50, the price-to-book (PB) ratio at 4.85.

The company’s most recent quarterly dividend payment was $0.75 a share, representing a down of -40.0% from $1.25 last year. Its latest decrease dividend $0.50 reported on Monday July 25 2022.

Financial Health

The quick ratio of Southern Copper Corporation for the three months ended March 30 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 0.82 and a total debt to equity ratio of 0.86 for the quarter ending March 30. 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 March 30, Southern Copper Corporation had $242.6 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 $432.3 million in the quarter, while revenues of $784.7 million were shrunk -115.75%. The analyst consensus anticipated Southern Copper Corporation’s latest quarter earnings to come in at $1.08 per share, but it turned out to be $1.02, a -5.60% surprise. For the quarter, EBITDA amounted to $1.02 billion. Shareholders own equity worth $773.09 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 07 October was 58.25%, suggesting the stock is Neutral, with historical volatility in this time frame at 32.64%.

As of today, SCCO’s price is $48.29 +6.85% or $3.07 from its 5-day moving average. SCCO is currently trading -2.62% lower than its 20-day SMA and -11.16% lower than its 100-day SMA. However, the stock’s current price level is +0.06% above the SMA50 and -19.13% below the SMA200.

The stochastic %K and %D were 88.92% and 93.09%, respectively, and the average true range (ATR) was 1.64. With the 14-day stochastic at 83.31% and the average true range at 1.66, the RSI (14) stands at 54.32%. The stock has reached 1.68 on the 9-day MACD Oscillator while the 14-day reading was at 2.28.

Analyst Ratings

Morgan Stanley upgraded Southern Copper Corporation (NYSE: SCCO) to a an Equal-weight rating in its most recent analyst report. Previously, the stock was rated as an Underweight. 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 10 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 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 $35.00 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 $51.43.

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