Southern Copper Corporation (SCCO): What is the Risk Factor?

Southern Copper Corporation (NYSE:SCCO) saw an upside of 0.14% to close Friday at $78.37 after adding $0.11 on the day. The 5-day average trading volume is 995,300 shares of the company’s common stock. It has gained $78.88 in the past week and touched a new high 3 times within the past 5 days. An average of 1,009,685 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,163,982.

SCCO’s 1-month performance is 6.95% or $5.09 on its low of $67.64 reached on 07/06/23. The company’s shares have touched a 52-week low of $42.42 and high of $82.05, with the stock’s rally to the 52-week high happening on 04/19/23. YTD, SCCO has achieved 29.77% or $17.98 and has reached a new high 15 times. However, the current price is down -4.49% from the 52-week high price.

Insider Transactions

SCCO stock investors last saw insider trading activity on Jun 12.PALOMINO BONILLA LUIS MIGUEL (Director) most recently sold 500 shares at $70.21 per share on Jun 12. This transaction cost the insider $35,105. Director, PALOMINO BONILLA LUIS MIGUEL, sold 500 shares at a price of $78.50 on May 08. Then, on May 05, Director PALOMINO BONILLA LUIS MIGUEL sold 500 shares at a price of $78.97 per share. This transaction amounted to $39,485.

Valuation Metrics

SCCO stock has a beta of 1.25. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 6.00 while the price-to-book (PB) in the most recent quarter is 7.46.

Southern Copper Corporation’s quick ratio for the period ended March 30 was 3.40, with the current ratio over the same period at 4.20. In terms of profitability, the gross margin trailing 12 months is 53.70%. The trailing 12-month EBITDA margin is 52.07% while for the period ending March 30, Southern Copper Corporation’s operating margin was 42.90%. The firm’s gross profit as reported stood at $5.4 billion against revenue of $10.05 billion.

Earnings Surprise

For the quarterly period ending March 30 this year, Southern Copper Corporation’s cash and short-term investments amounted to $140.6 million against total debt of $7.08 billion. Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 3.5% to $813.2 million, while revenue of $902.5 million was -10.98% off the previous quarter. Analysts expected SCCO to announce $1 per share in earnings in its latest quarter, but it posted $1.05, representing a 5.00% surprise. EBITDA for the quarter stood at more than $1.56 billion. SCCO stock balance sheet for the quarter ending March 30 shows that total liabilities totaled 9.13 billion, with total debt at $7.08 billion. Shareholders hold equity totaling $773.1 million.

Let’s look briefly at Southern Copper Corporation (SCCO) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 21 July was 69.09% to suggest the stock is trending Neutral, with historical volatility in this time period at 28.40%.

The stock’s 5-day moving average is $77.18, reflecting a +2.07% or $1.59 change from its current price. SCCO is currently trading +6.19% above its 20-day SMA, +8.10% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -0.85% and SMA200 by+64.16%.

Stochastic %K and %D was 92.19% and 88.13% and the average true range (ATR) pointed at 1.87. The RSI (14) points at 64.16%, while the 14-day stochastic is at 95.51% with the period’s ATR at 1.93. The stock’s 9-day MACD Oscillator is pointing at 1.47 and 3.42 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Southern Copper Corporation (NYSE: SCCO), Goldman downgraded it to a Sell rating. They previously had a Neutral rating on the stock. Analysts offering their rating for SCCO stock have a consensus rating for the stock as Underweight. Currently, 7 brokerage advisors rate SCCO as a “sell,”, while 7 advise that investors “Hold.” 2 analysts have rated the stock as underweight. 0 rates the stock as overweight while 1 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $45.00 and a high of $95.00, with their median price target at $64.00. Looking at these predictions, the average price target given by analysts is for Southern Copper Corporation (SCCO) stock is $63.10.

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