The stock price of Southern Copper Corporation (NYSE: SCCO) has jumped by 2.10 compared to previous close of 107.77. Despite this, the company has seen a gain of 7.77% in its stock price over the last five trading days. Zacks Investment Research reported 2024-03-18 that Southern Copper (SCCO) is poised to grow on the back of its copper reserves and solid growth projects. However, inflationary pressures will impact margins in the near term.
Is It Worth Investing in Southern Copper Corporation (NYSE: SCCO) Right Now?
Southern Copper Corporation (NYSE: SCCO) has a price-to-earnings ratio that is above its average at 35.07x. The stock has a 36-month beta value of 1.32. Opinions on the stock are mixed, with 2 analysts rating it as a “buy,” 0 as “overweight,” 5 as “hold,” and 4 as “sell.”
The public float for SCCO is 85.10M, and at present, short sellers hold a 6.82% of that float. On April 03, 2024, the average trading volume of SCCO was 1.07M shares.
SCCO’s Market Performance
SCCO stock saw an increase of 7.77% in the past week, with a monthly gain of 34.53% and a quarterly increase of 29.97%. The volatility ratio for the week is 2.23%, and the volatility levels for the last 30 days are 2.85% for Southern Copper Corporation (SCCO). The simple moving average for the last 20 days is 12.96% for SCCO’s stock, with a simple moving average of 37.85% for the last 200 days.
Analysts’ Opinion of SCCO
Many brokerage firms have already submitted their reports for SCCO stocks, with Jefferies repeating the rating for SCCO by listing it as a “Buy.” The predicted price for SCCO in the upcoming period, according to Jefferies is $130 based on the research report published on March 22, 2024 of the current year 2024.
Morgan Stanley, on the other hand, stated in their research note that they expect to see SCCO reach a price target of $68, previously predicting the price at $83. The rating they have provided for SCCO stocks is “Underweight” according to the report published on November 27th, 2023.
Jefferies gave a rating of “Hold” to SCCO, setting the target price at $91 in the report published on September 18th of the previous year.
SCCO Trading at 25.07% from the 50-Day Moving Average
After a stumble in the market that brought SCCO to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 1.26% of gains for the given period.
Volatility was left at 2.85%, however, over the last 30 days, the volatility rate increased by 2.23%, as shares surge +36.27% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +35.61% upper at present.
During the last 5 trading sessions, SCCO rose by +6.82%, which changed the moving average for the period of 200-days by +47.06% in comparison to the 20-day moving average, which settled at $98.85. In addition, Southern Copper Corporation saw 27.84% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SCCO starting from PALOMINO BONILLA LUIS MIGUEL, who sale 100 shares at the price of $87.10 back on Mar 13 ’24. After this action, PALOMINO BONILLA LUIS MIGUEL now owns 5,014 shares of Southern Copper Corporation, valued at $8,710 using the latest closing price.
PALOMINO BONILLA LUIS MIGUEL, the Director of Southern Copper Corporation, sale 197 shares at $85.00 during a trade that took place back on Mar 07 ’24, which means that PALOMINO BONILLA LUIS MIGUEL is holding 5,114 shares at $16,745 based on the most recent closing price.
Stock Fundamentals for SCCO
Current profitability levels for the company are sitting at:
- 0.42 for the present operating margin
- 0.44 for the gross margin
The net margin for Southern Copper Corporation stands at 0.25. The total capital return value is set at 0.27. Equity return is now at value 31.29, with 14.26 for asset returns.
Based on Southern Copper Corporation (SCCO), the company’s capital structure generated 0.46 points at debt to capital in total, while cash flow to debt ratio is standing at 0.56. The debt to equity ratio resting at 0.85. The interest coverage ratio of the stock is 12.83.
Currently, EBITDA for the company is 5.03 billion with net debt to EBITDA at 1.15. When we switch over and look at the enterprise to sales, we see a ratio of 9.22. The receivables turnover for the company is 8.06for trailing twelve months and the total asset turnover is 0.59. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.19.
Conclusion
To sum up, Southern Copper Corporation (SCCO) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
