Does Southern Copper Corporation (SCCO) Have A Risk Factor?

The stock of Southern Copper Corporation (NYSE:SCCO) increased by $1.25 on Friday to finish at $85.22, up 1.49 percent. The last five days have seen an average of 1,336,620 shares of common stock traded. 18 times new highs were reached in the current year, with a gain of $24.83. The average number of shares traded over the last 20 days was 1,070,535, while the average volume over the last 50 days totaled 1,123,156.

SCCO stock appreciated 20.57% since last month. On 07/06/23, the company’s shares reached a one-month low of $67.64. The stock touched a high of $85.72 on 07/27/23, after rallying from a low of $42.42 in 52 weeks. The price of SCCO stock has risen by 41.12% or $24.83 this year, reaching a new high 18 times. Still, the stock price is down -0.58% 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 49 days ago on Jun 12. On Jun 12, Director PALOMINO BONILLA LUIS MIGUEL sold 500 shares at $70.21 each. This transaction resulted in the insider making $35,105. On May 08, PALOMINO BONILLA LUIS MIGUEL sold 500 shares at a price of US$78.50. After the transaction, the insider now owns 6,014 shares. Director PALOMINO BONILLA LUIS MIGUEL had earlier sold 500 shares on May 05 for $78.97 a share. The transaction was completed for $39,485.

Valuation Metrics

Southern Copper Corporation (SCCO) has a trailing price-to-earnings (P/E) ratio of 24.70. Beta for the stock is 1.25. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 6.44, the price-to-book (PB) ratio of 8.11.

Company paid $1.00 per share in dividends, an increase of 5.26% from $0.95 last year.

Financial Health

For the three months ended March 30, Southern Copper Corporation’s quick ratio was 3.40, while its current ratio was 4.20, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 53.70% percent. Southern Copper Corporation’s EBITDA margin for the year ended March 30 was 52.07%, whereas its operating margin stood at 42.90% for the same period. Based on annual data, it had gross profit of $5.4 billion and revenue of $10.05 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SCCO’s return on assets (ROA) during the last 12 months has been 15.50%. There was a 19.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 34.00%.

Earnings Surprise

According to Southern Copper Corporation’s quarterly financial report for the quarter that ended March 30, it had $6.25 billion in total debt versus $140.6 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.79 billion, while revenues rose by 1.08% to $2.82 billion. It was predicted that Southern Copper Corporation’s quarterly earnings would be $1.05, but it ended up being $1, beating the consensus by 5.00%. EBITDA was $1.56 billion for the quarter. Equity owned by shareholders amounts to $773.1 million.

Technical Picture

Here’s a quick look at Southern Copper Corporation’s (SCCO) price momentum from a technical perspective. As of 28 July, the RSI 9-day stood at 83.50%, suggesting the stock is Overbought, with a 24.66% historical volatility rate.

The stochastic %K and %D were 93.56% and 93.91% respectively, while the average true range (ATR) was 2.15. Based on the 14-day stochastic reading of 96.58%, the RSI (14) reading is 75.96%. On the 9-day MACD Oscillator, the stock is at 3.71, and the 14-day reading is at 5.61.

Analyst Ratings

Southern Copper Corporation (NYSE: SCCO) was downgraded by Goldman to a a Sell rating in its latest research report. The stock was previously rated as a a Neutral. Analysts have assigned Southern Copper Corporation (SCCO) an Underweight rating. SCCO is a stock that is recommended for selling by 7 brokerage firms, while 7 companies recommend holding. The stock is underweighted by 2 analysts. Among the analysts who rate the stock, 0 rates it overweight and 1 other recommend it as a buy.

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

The current consensus forecast for the stock is between $45.00 and $95.00, with a median target price of $64.00. In analyzing these forecasts, the average price target given by analysts for Southern Copper Corporation (SCCO) is $62.90.

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