UBS has recently initiated Southern Copper Corp (SCCO) stock to Neutral rating, as announced on July 12, 2024, according to Finviz. Earlier, on April 22, 2024, HSBC Securities had reduced the stock from a Hold to Reduce, setting a price target of $80. Jefferies also raised Buy rating with a price target of $130. Additionally, Morgan Stanley reduced their rating on November 27, 2023, with a target price of $68. Jefferies analysts, in their report published on September 18, 2023, also initiated Hold rating for Southern Copper Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Southern Copper Corp (SCCO) Stock Trading Recap
On Monday, Southern Copper Corp (SCCO) stock saw a decline, ending the day at $115.67 which represents a decrease of $-3.20 or -2.69% from the prior close of $118.87. The stock opened at $117.15 and touched a low of $114.77 during the day, reaching a high of $117.88. The volume of shares traded was 1.19 million exceeding the average volume of 1.13 million.
SCCO Stock Performance and Moving Averages
In recent trading, Southern Copper Corp (SCCO) stock price has shown some volatility, fluctuating 9.06% over the last five trades and 14.04% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 9.80%, and it has gained 7.07% in the previous three months. Currently, SCCO is trading at 13.03%, 13.00%, and 16.00% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, SCCO, a Basic Materials sector stock, is trading -10.38% below its 52-week high but remains 70.49% above its 52-week low. The Average True Range (ATR) (14 days) of 3.77 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Southern Copper Corp’s Profitability and Valuation Ratios
Southern Copper Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 45.01% and a profit margin of 26.15%, with a gross margin of 9.80%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Southern Copper Corp’s market capitalization stands at $90.86 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 32.98, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 24.09. Additionally, the Price-to-Sales Ratio is 8.64, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 10.7, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 88.99% of Southern Copper Corp (SCCO)’s shares, while financial institutions hold 8.68%.
Notable insider trades include PALOMINO BONILLA LUIS MIGUEL, Director at Southern Copper Corp (SCCO), who sold 3600 shares on Apr 30 ’24, at $118.3 each, totaling $0.43 million. On Feb 21 ’24, Castillo Sanchez Mejorada Enri, Director, sold 2400 shares for $82.99 each, amounting to $0.20 million.
