Southern Copper Corp (NYSE:SCCO) director Luis Miguel Palomino Bonilla sold 100 shares of the company's common stock on August 8, according to a recent filing with the Securities and Exchange Commission. The shares were sold at a price of $99.60 each, totaling $9,960.
The transaction has adjusted Palomino Bonilla's holdings in the company to 2,514 shares of common stock. The sale was executed directly, indicating that the shares were owned personally by the director.
Investors often monitor insider transactions as they can provide insights into how the company's leadership views the stock's value and future performance. However, it's important to consider that there can be various reasons for an insider to sell shares, and such transactions do not always signal a lack of confidence in the company.
Southern Copper, with its headquarters in Phoenix, Arizona, is one of the leading copper producers globally. The company operates mining, smelting, and refining facilities in regions known for rich mineral reserves.
The stock trades on the New York Stock Exchange under the ticker symbol SCCO. Investors and analysts keeping track of Southern Copper will continue to watch insider activity as part of their assessment of the stock's potential.
In other recent news, Southern Copper Corporation has seen varying analyst perspectives, with UBS initiating coverage on the company with a neutral rating and a price target of $120. This is due to the company's valuation and the cautious approach of the street, with about 60% of analysts maintaining a sell rating over the past two years. On the other hand, Jefferies has increased its price target for Southern Copper to $137, citing the company's operational strength and progress on the Tia Maria project. Meanwhile, Scotiabank has revised its outlook, lowering its price target to $54, but anticipates an increase in the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) from 2024 through 2026.
In terms of company news, Southern Copper has announced the resumption of construction for the Tia Maria project in Peru, following discussions with the Peruvian government. This development underscores the company's growth potential and its extensive resources and project pipeline. Additionally, Southern Copper reported a strong first quarter with earnings per share (EPS) of $0.95 and revenue of $2.6 billion, exceeding analyst estimates.
In other developments, the surge in illegal mining operations in Peru has led to increased traffic congestion along the country's crucial mining corridor highway. This has posed challenges to the Peruvian government's efforts to boost investment and production in the sector. These are recent developments that investors should be aware of when considering Southern Copper Corporation.
InvestingPro Insights
In light of the recent insider transaction at Southern Copper Corp (NYSE:SCCO), investors seeking a deeper understanding of the company's financial health can consider several key metrics and insights from InvestingPro. As of the last twelve months ending Q2 2024, Southern Copper boasts a robust market capitalization of $78.45 billion, reflecting its significant presence in the industry.
One of the notable InvestingPro Tips for Southern Copper is its commendable track record of raising its dividend for 3 consecutive years, indicating a commitment to returning value to shareholders. Additionally, the company has maintained dividend payments for 29 consecutive years, a testament to its financial stability and consistent performance. For investors interested in the dividend aspect of Southern Copper, these are reassuring signs of the company's dedication to shareholder returns.
From a valuation perspective, Southern Copper's Price to Earnings (P/E) ratio stands at 28.15, with an adjusted P/E ratio slightly higher at 28.52 for the last twelve months as of Q2 2024. While the company operates with a high Price/Book multiple of 9.24, this could potentially reflect the market's optimism about its assets and future growth prospects. Moreover, the company's revenue shows a healthy growth of 4.44% over the last twelve months, which could be an indicator of its ability to expand and generate increased sales.
For those looking to delve further into Southern Copper's financials and performance evaluations, InvestingPro offers additional tips, including insights on the company's liquidity, debt levels, and profitability predictions. With 11 more InvestingPro Tips available, investors can access a wealth of information to help inform their investment decisions by visiting the dedicated InvestingPro page for Southern Copper.
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