Franklin Resources Inc. has recently made an astonishing leap in their position at Southern Copper Co. By 125.6% in the fourth quarter, the company lifted its holdings to include a significant number of shares worth $2,054,000. This comes as no surprise, as Franklin Resources Inc., which operates as Franklin Templeton Investments, is known for managing over $1.5 trillion in assets for various investors worldwide.
Southern Copper Co., a well-known basic materials firm, was the sole beneficiary of this investment from Franklin Resources Inc. Interestingly enough, Southern Copper Co.’s dividend payout ratio (DPR) had reached a whopping 115.94% and was currently providing a yield of 5.36%. A quarterly dividend of $0.95 per share was paid out recently on May 23rd to shareholders whose names were entered on record by May 9th.
It should come as no shock that investing in Southern Copper Co. has proven to be exceptionally lucrative on various other occasions as well; for instance, Director Bonilla Luis Miguel Palomino sold 500 shares of the business’s stock back on May 8th this year at an average price of $78.50 per share and bagged a whopping sum total of $39,2500! The director who ushered in such enormous wealth now possesses around 6,014 shares valued at approximately $472099.
With such an incredible jump by Franklin Resources Inc., many would be wondering what propelled them to make such bold decisions about their investments into Southern Copper Co.? Could it be that they stumbled upon some insider information or did they merely rely on their financial forecasting methods? Either way, one thing is sure – Southern Copper Co is one company that will continue making waves in the market for years to come!
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Southern Copper Corp: Mixed Reviews from Analysts but Strong Investment Potential
Southern Copper Corp is an American company based in Arizona which specialises in the production of copper, zinc, lead, silver and gold. It is the fifth largest mining enterprise in the world. The company’s shares trade on the New York Stock Exchange under the symbol SCCO.
Several research analysts have recently commented on SCCO. StockNews.com initiated coverage of Southern Copper and gave it a “buy” rating. Meanwhile, Goldman Sachs downgraded its rating to “sell” from “neutral.” UBS Group said they thought Southern Copper was a “sell” whereas Deutsche Bank AG raised their target price from $55 to $56 per share. Morgan Stanley also changed its rating for SCCO from “overweight” to “equal weight.”
Despite mixed views by research firms, SCCO has fared well this year in terms of investments; several institutional investors and hedge funds acquired shares early this year including Mercer Global Advisors (which acquired 142 additional shares), Janiczek Wealth Management) (an additional 162), Hennion & Walsh Asset Management (an additional 165) Confluence Investment Management (added an extra 167) and Moneda USA Inc.(purchased an extra 177). Overall, institutional investors own over seven percent of Southern Copper’s stock.
As of Monday’s trading session, one SCCO share stood at $70.94 with a market cap of $54.84bn and a PE ratio of 20.56 with regard to earnings per share for last fiscal year-end December 2020; this suggests that each share is valued at 20 times the annual EPS generated by Southern Copper. In addition, it has a current price-to-earnings-growth ratio of 14.57; this suggests that for each dollar invested in SCCO today there is potential growth into earnings over time.
Furthermore, with copper consistently commanding high demand as seen with China utilising its producer power to raise raw material prices to record highs, and the fact that SCCO ranked fifth largest mining enterprise in its fields, SCCO remains a stock worth considering for investment.