Morgan Stanley slashes price target on Southern Copper Corporation [SCCO] – find out why.

Southern Copper Corporation [NYSE: SCCO] loss -1.34% or -0.59 points to close at $43.57 with a heavy trading volume of 1083411 shares.

It opened the trading session at $42.85, the shares rose to $43.58 and dropped to $42.02, the range by which the price of stock traded the whole day. The daily chart for SCCO points out that the company has recorded 8.90% gains over the past six months. However, it is still -85.96% lower than its most recent low trading price.

If we look at the average trading volume of 830.64K shares, SCCO reached to a volume of 1083411 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Southern Copper Corporation [SCCO]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SCCO shares is $37.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SCCO stock is a recommendation set at 3.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Southern Copper Corporation shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on August 04, 2020. The new note on the price target was released on June 22, 2020, representing the official price target for Southern Copper Corporation stock. Previously, the target price had yet another drop from $47 to $41, while Goldman kept a Neutral rating on SCCO stock.

The Average True Range (ATR) for Southern Copper Corporation is set at 1.40, with the Price to Sales ratio for SCCO stock in the period of the last 12 months amounting to 4.66. The Price to Book ratio for the last quarter was 4.94, with the Price to Cash per share for the same quarter was set at 2.37. Price to Free Cash Flow for SCCO in the course of the last twelve months was 91.13 with Quick ratio for the last quarter at 3.20.

Trading performance analysis for SCCO stock

Southern Copper Corporation [SCCO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.92. With this latest performance, SCCO shares gained by 6.95% in over the last four-week period, additionally plugging by 8.90% over the last 6 months – not to mention a rise of 35.06% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SCCO stock in for the last two-week period is set at 55.61, with the RSI for the last a single of trading hit 53.24, and the three-weeks RSI is set at 58.70 for Southern Copper Corporation [SCCO]. The present Moving Average for the last 50 days of trading for this stock 40.02, while it was recorded at 43.91 for the last single week of trading, and 36.93 for the last 200 days.

Southern Copper Corporation [SCCO]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Southern Copper Corporation [SCCO] shares currently have an operating margin of +37.79 and a Gross Margin at +39.60. Southern Copper Corporation’s Net Margin is presently recorded at +20.39.

Return on Total Capital for SCCO is now 20.08, given the latest momentum, and Return on Invested Capital for the company is 11.06. Return on Equity for this stock inclined to 22.21, with Return on Assets sitting at 9.62. When it comes to the capital structure of this company, Southern Copper Corporation [SCCO] has a Total Debt to Total Equity ratio set at 117.28. Additionally, SCCO Total Debt to Total Capital is recorded at 53.98, with Total Debt to Total Assets ending up at 48.68. Long-Term Debt to Equity for the company is recorded at 110.40, with the Long-Term Debt to Total Capital now at 50.81.

Reflecting on the efficiency of the workforce at the company, Southern Copper Corporation [SCCO] managed to generate an average of $103,895 per employee. Receivables Turnover for the company is 7.73 with a Total Asset Turnover recorded at a value of 0.47.Southern Copper Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.20 and a Current Ratio set at 4.30.

Southern Copper Corporation [SCCO]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Southern Copper Corporation posted 0.4/share EPS, while the average EPS was predicted by analysts to be reported at 0.49/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -18.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SCCO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Southern Copper Corporation go to -0.20%.

An analysis of insider ownership at Southern Copper Corporation [SCCO]

There are presently around $2,374 million, or 7.60% of SCCO stock, in the hands of institutional investors. The top three institutional holders of SCCO stocks are: PRICE T ROWE ASSOCIATES INC /MD/ with ownership of 7,040,723, which is approximately 3.404% of the company’s market cap and around 89.37% of the total institutional ownership; BLACKROCK INC., holding 6,265,419 shares of the stock with an approximate value of $272.98 million in SCCO stocks shares; and STATE STREET CORP, currently with $170.68 million in SCCO stock with ownership of nearly 5.82% of the company’s market capitalization.

Positions in Southern Copper Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 127 institutional holders increased their position in Southern Copper Corporation [NYSE:SCCO] by around 7,359,628 shares. Additionally, 156 investors decreased positions by around 5,169,046 shares, while 44 investors held positions by with 41,959,207 shares. The mentioned changes placed institutional holdings at 54,487,881 shares, according to the latest SEC report filing. SCCO stock had 43 new institutional investments in for a total of 2,228,293 shares, while 47 institutional investors sold positions of 727,150 shares during the same period.

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