Are Southern Copper (NYSE:SCCO) Shares Reaching An Inflection Point; Santander Decides to Downgrades Company


Southern Copper (NYSE:SCCO) Receives a Downgrade

Southern Copper (NYSE:SCCO) was just lowered by Santander from the old “Buy” rating to a “Hold” in an analyst note sent to clients and investors on 8 December. Santander now has a $30.00 TP on the shares. Santander’s TP could mean a potential upside of 20.05% from the stock’s stock close price.

From a total of 14 analysts covering Southern Copper (NYSE:SCCO) stock, 5 rate it a ”Buy”, 1 a “Sell”, and 10 a ”Hold”. This means that 31% of the ratings are positive. The highest target price is $39 while the lowest target price is $24.5. The mean of all analyst targets is $30.96 with a 26.21% above today’s ($24.8) stock price. Southern Copper was the topic of 7 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Santander downgraded shares on December 8 to “Hold” rating. Cowen & Co maintained shares with “Market Perform” rating and $26 target share price in a report from an August 5. Bank of America downgraded SCCO stock in a recent report from October 6 to “Underperform” rating. Finally, JP Morgan downgraded the stock to “Neutral” rating in a report issued on an August 31.

The stock decreased 4.47% or $1.16 during the last trading session, striking $24.8. Approximately 2.46 million shares of stock traded hands or 45.56% up from the average. Southern Copper Corp (NYSE:SCCO) has declined 24.00% since May 6, 2015 and is downtrending. It has underperformed by 23.20% the S&P500.

The overall sentiment of institutions has increased to 0.78 in Q2 2015. Its up 0.15, from 0.63 in 2015Q2. The ratio is positive, as 36 institutions have sold all the shares of Southern Copper Corp that they owned while 89 funds have taken shares off the table. 23 funds have purchased shares for the first time while 75 added to their positions. These institutions now hold 73.26 million shares or 6.81% less than the 78.61 million shares they owned in 2015Q2.

The Fund Washington State Investment Board currently is holding shares equating to 4.56% of its total portfolio in Southern Copper Corp representing a total of 107,757 shares. Another fund,Agf Investments America Inc., is holding a total of 117,385 shares equating to 1.99% of their holdings. Additionally, Nikko Asset Management Americas Inc. has a 590,943 share stake in Southern Copper Corp which represents 1.59% of their total portfolio. The Fund, Martin Currie Ltd, based out of United Kingdom, has also built up a stake in the stock, which represents a total of 1.41% of their total portfolio. Finally Denali Advisors Llc, a fund which is based in the state of California reported a total holdings of 215,200 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 16, 2015, shareholders of Southern Copper Corp have witnessed 1 insider buy, and a total of 0 selling transactions equating to a net activity of approximately $705,619 . Velasco German Larrea Mota bought 27,400 shares worth approximately $705,619. Casar Perez Alfredo sold 2,400 shares worth approximately $65,352.

Southern Copper Corporation is a copper producer. The company has a market cap of $20.39 billion. The Firm produces copper, molybdenum, zinc and silver. It has 19.52 P/E ratio. The Firm operates in three divisions: Peruvian operations, Mexican open-pit activities and Mexican IMMSA unit.

According to Zacks Investment Research, “Southern Peru Copper Corp. objective is to increase stockholder value through earnings and cash flow growth in varied market conditions. The company intends to further realize the potential of there existing operations by expanding our production capacity and reserves, as well as exploring and developing promising mineral deposits. The company believe that there existing operations have significant growth potential that can be financed mainly through internally generated cash flows. They also intend to supplement internal growth by selectively pursuing value-enhancing acquisition opportunities.” Get a free copy of the Zacks research report on Southern Copper Corp (SCCO).