Aviva PLC Boosts Stake in Southern Copper Co. as Share Prices Rise
In a recent disclosure with the Securities and Exchange Commission, Aviva PLC announced a 5.7% increase in their holdings of Southern Copper Co. (NYSE:SCCO). The institutional investor acquired an additional 3,307 shares of the basic materials company’s stock during Q4, resulting in a total stake of 61,505 shares worth $982,000 as of the last reporting period.
The news comes as Southern Copper’s share price continues to climb steadily, with Barclays raising their price objective from $53.00 to $64.00 and rating the company as “equal weight” in a recent research report released on April 21st.
Aside from Barclays’ report, there have been mixed reactions from analysts regarding Southern Copper. While StockNews.com gave the company a “buy” rating in May, Morgan Stanley lowered it from “overweight” to “equal weight” back in March and four separate equities research analysts have given it a sell rating so far.
Southern Copper’s current market capitalization is $51.61 billion with a P/E ratio of 19.35 and beta of 1.23. The company currently has debt-to-equity ratio of 0.76 along with quick ratio at an impressive 3.38 and current ratio at 4.17 respectively.
As of June 1st, NYSE SCCO opened at $66.76 with fifty-day moving average sitting around $74.19 while two-hundred day moving average stood near $70.34.
Despite mixed reactions from industry players, Bloomberg marks Southern Copper as having a consensus target price of $62.29; reflecting a degree of fluctuation over recent times yet progressing adequately towards growth prospects that are expected to be significant for most investors looking to build investment portfolios that stand the test time.
Overall, Aviva PLC’s boost in stake comes amidst increasing market optimism, as Southern Copper looks set to continue its upward trajectory in terms of share price and brand reputation.
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Institutional Investors Show Interest in Southern Copper Corporation – Recent Share Movement and Dividend Payouts Highlight Positive Market Outlook
Southern Copper Corporation has recently been attracting a lot of attention from institutional investors, as many have bought and sold shares in the company. Among these investors are Victory Capital Management Inc., Franklin Resources Inc., CoreCap Advisors LLC, Laffer Tengler Investments, and Brandywine Global Investment Management LLC.
Victory Capital Management Inc. raised its position in Southern Copper by 0.7% during the fourth quarter, owning 33,236 shares of the basic materials company’s stock valued at $2,007,000 after acquiring an additional 235 shares in the last quarter. Similarly, Franklin Resources Inc. increased its position in shares of Southern Copper by 125.6% in the fourth quarter, owning 34,020 shares of the basic materials company’s stock valued at $2,054,000 after buying an additional 18,941 shares in the last quarter.
On the other hand, CoreCap Advisors LLC purchased a new stake in Southern Copper’s shares in the fourth quarter valued at approximately $71,000. Laffer Tengler Investments increased its position in shares of Southern Copper by 39.3% and now owns 4,775 shares of the basic materials company’s stock valued at $288,000 after buying an additional 1,346 shares in the last quarter.
Finally, Brandywine Global Investment Management LLC increased its position in Southern Copper during Q4 by 59.4%. Brandywine Global now owns a total of 911,991 shares of Southern Copper with a total value of $55,864 million after purchasing an additional 339,937 shares over the last quarter.
As per Securities & Exchange Commission filings accessible through public links online; it was found that one director Bonilla Luis Miguel Palomino has sold off about five hundred (500) business shares worth around thirty-nine thousand two hundred and fifty dollars ($39,250) on May eighth this year (2023). This move has led to the director holding a total of 6,014 shares of Southern Copper Corporation worth $472,099.
It is noteworthy that despite these investments and shareholder activities, Southern Copper recently disclosed a quarterly dividend payment. Shareholders of record on Tuesday, May 9th were paid a dividend of $0.95 per share. This represents a $3.80 dividend on an annualized basis with a yield of 5.69%. The ex-dividend date was Monday, May 8th – the same day as Palomino’s share sale transaction. Unusually, Southern Copper’s dividend payout ratio (DPR) is currently 115.94%.
Southern Copper has emerged as an attractive investment opportunity amidst its constant growth potential leading to investors building up their position in the company’s equity. While it’s fascinating to see companies like these attract investment interest; such growth can also lead to regulatory scrutiny if seen as monopolistic or having anti-competitive practices through large holdings in natural resources and mining businesses.
The recent activity in Southern Copper corporate shares by well-known institutional investors does indicate positive sentiment towards its market outlook at present but should be watched closely for any changes over time.
