Fintel reports that on September 18, 2023, Jefferies initiated coverage of Southern Copper (NYSE:SCCO) with a Hold recommendation.
Analyst Price Forecast Suggests 20.99% Downside
As of August 31, 2023, the average one-year price target for Southern Copper is 62.93. The forecasts range from a low of 43.43 to a high of $89.14. The average price target represents a decrease of 20.99% from its latest reported closing price of 79.65.
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The projected annual revenue for Southern Copper is 9,768MM, a decrease of 3.02%. The projected annual non-GAAP EPS is 2.95.
Southern Copper Declares $1.00 Dividend
On July 20, 2023 the company declared a regular quarterly dividend of $1.00 per share ($4.00 annualized). Shareholders of record as of August 9, 2023 received the payment on August 23, 2023. Previously, the company paid $1.00 per share.
At the current share price of $79.65 / share, the stock's dividend yield is 5.02%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.78%, the lowest has been 1.74%, and the highest has been 10.46%. The standard deviation of yields is 1.47 (n=236).
The current dividend yield is 0.16 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.97. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 1.19%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 829 funds or institutions reporting positions in Southern Copper. This is a decrease of 26 owner(s) or 3.04% in the last quarter. Average portfolio weight of all funds dedicated to SCCO is 0.23%, an increase of 9.67%. Total shares owned by institutions decreased in the last three months by 6.80% to 61,502K shares. 
The put/call ratio of SCCO is 0.73, indicating a bullish outlook.
What are Other Shareholders Doing?
Fisher Asset Management holds 3,327K shares representing 0.43% ownership of the company. In it's prior filing, the firm reported owning 3,311K shares, representing an increase of 0.46%. The firm decreased its portfolio allocation in SCCO by 13.76% over the last quarter.
Standard Life Aberdeen holds 3,093K shares representing 0.40% ownership of the company. In it's prior filing, the firm reported owning 2,702K shares, representing an increase of 12.64%. The firm decreased its portfolio allocation in SCCO by 9.63% over the last quarter.
Mawer Investment Management holds 2,694K shares representing 0.35% ownership of the company. In it's prior filing, the firm reported owning 2,757K shares, representing a decrease of 2.31%. The firm decreased its portfolio allocation in SCCO by 11.84% over the last quarter.
Price T Rowe Associates holds 1,871K shares representing 0.24% ownership of the company. In it's prior filing, the firm reported owning 2,460K shares, representing a decrease of 31.52%. The firm increased its portfolio allocation in SCCO by 50.24% over the last quarter.
FIL holds 1,759K shares representing 0.23% ownership of the company. In it's prior filing, the firm reported owning 2,930K shares, representing a decrease of 66.52%. The firm decreased its portfolio allocation in SCCO by 2.42% over the last quarter.
Southern Copper Background Information
(This description is provided by the company.)
Southern Copper Corporation is one of the largest integrated copper producers in the world and has the largest copper reserves of the industry. The company is a NYSE and Lima Stock Exchange listed company that is 88.9% owned by Grupo Mexico, a Mexican company listed on the Mexican Stock Exchange. The remaining 11.1% ownership interest is held by the international investment community. Southern Copper Corp. operates mining units and metallurgical facilities in Mexico, Peru and conduct exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
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