A History of Outperforming Analyst Forecasts and Beating the Odds: Southern Copper Corporation (SCCO)

Southern Copper Corporation (NYSE: SCCO) stock jumped 0.46% on Friday to $45.57 against a previous-day closing price of $45.36. With 1.24 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.53 million shares. During the session, the Copper company that operates in wider Basic Materials sector, reached to the highest price of $46.55 whereas the lowest price it dropped to was $45.38. The 52-week range on SCCO shows that it touched its highest point at $79.32 and its lowest point at $44.31 during that stretch. It currently has a 1-year price target of $51.04. With its current market cap of 35.29 billion, SCCO has annualized dividend of $3.00 while the current yield stands at 6.58%. Beta for the stock currently stands at 1.14.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SCCO was down-trending over the past week, with a drop of -2.54%, but this was down by -7.72% over a month. Three-month performance dropped to -8.01% while six-month performance fell -41.25%. The stock lost -19.70% in the past year, while it has lost -26.15% so far this year. A look at the trailing 12-month EPS for SCCO yields 3.77 with Next year EPS estimates of 3.14. For the next quarter, that number is 0.66. This implies an EPS growth rate of 116.30% for this year and -2.15% for next year.

Float and Shares Shorts:

At present, 773.10 million SCCO shares are outstanding with a float of 85.22 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.89 million, which was 0.76% higher than short shares on Jun 14, 2022. In addition to Mr. Oscar Gonzalez Rocha as the firm’s Pres, CEO & Director, Mr. Raul Jacob Ruisanchez serves as its VP of Fin., Treasurer & CFO.

Institutional Ownership:

Through their ownership of 7.58% of SCCO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 88.98% of SCCO, in contrast to 4.59% held by mutual funds. Shares owned by individuals account for 2.74%. As the largest shareholder in SCCO with 0.69% of the stake, BlackRock Fund Advisors holds 5,311,894 shares worth 5,311,894. A second-largest stockholder of SCCO, T. Rowe Price Associates, Inc., holds 4,179,899 shares, controlling over 0.54% of the firm’s shares. Fisher Asset Management LLC is the third largest shareholder in SCCO, holding 3,580,847 shares or 0.46% stake. With a 0.17% stake in SCCO, the Global X Copper Miners ETF is the largest stakeholder. A total of 1,323,560 shares are owned by the mutual fund manager. The Stichting Pensioenfonds ABP, which owns about 0.15% of SCCO stock, is the second-largest Mutual Fund holder. It holds 1,142,544 shares valued at 53.78 million. T Rowe Price Emerging Markets Sto holds 0.12% of the stake in SCCO, owning 922,800 shares worth 43.44 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SCCO since 20 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 7 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SCCO analysts setting a high price target of $72.50 and a low target of $35.00, the average target price over the next 12 months is $51.85. Based on these targets, SCCO could surge 59.1% to reach the target high and fall by -23.2% to reach the target low. Reaching the average price target will result in a growth of 13.78% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SCCO will report FY 2022 earnings on 01/31/2023. Analysts have provided yearly estimates in a range of $4.28 being high and $2.60 being low. For SCCO, this leads to a yearly average estimate of $3.18. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Southern Copper Corporation surprised analysts by -$0.32 when it reported $0.56 EPS against a consensus estimate of $0.88. The surprise factor in the prior quarter was -$0.07. Based on analyst estimates, the high estimate for the next quarter is $0.87 and the low estimate is $0.44. The average estimate for the next quarter is thus $0.66.

Summary of Insider Activity:

Insiders traded SCCO stock several times over the past three months with 8 Buys and 0 Sells. In these transactions, 3,200 shares were bought while 0 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 3 over the past year. The total number of shares bought during that period was 14,800 while 350,000 shares were sold.

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