PHOENIX—Luis Miguel Palomino Bonilla, a director at Southern Copper Corp. (NYSE:SCCO), sold 101 shares of the company's common stock on November 19, according to a recent filing with the Securities and Exchange Commission. The shares were sold at a price of $103.68 each, totaling $10,471. Following this transaction, Palomino Bonilla holds 2,513 shares in the company. Southern Copper Corp., a major player in the metal mining industry, is headquartered in Phoenix, Arizona.
In other recent news, Southern Copper Corp. reported third-quarter earnings that exceeded analyst expectations, while revenue slightly missed the mark. The company posted adjusted earnings per share of $1.15, surpassing the analyst consensus of $1.11. However, the revenue for the period was $2.93 billion, a smidgen under the estimated $2.94 billion.
Analysts at Citi noted that the company's third-quarter EBITDA of $1.7 billion was in line with their expectations. They also highlighted that mined copper production was up 12% year-over-year, marking the best quarter since 2020 due to improved grades in Mexico and Peru.
In other developments, Southern Copper Corp. is reviewing its historical capital budget for the Tia Maria Project, with an updated budget expected by the year's end. The company plans to initiate several activities in the coming months, including building roads and access points, training operators, and beginning earthmoving activities. Construction for the project is slated to commence in 2025. Notably, Citi maintains a sell rating on Southern Copper Corp's shares.
InvestingPro Insights
While Director Luis Miguel Palomino Bonilla's recent sale of Southern Copper Corp. (NYSE:SCCO) shares may raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, Southern Copper boasts a substantial market capitalization of $81.44 billion, indicating its significant presence in the metal mining industry.
The company's financial health appears robust, with InvestingPro Tips highlighting that SCCO has maintained dividend payments for an impressive 29 consecutive years. This long-standing commitment to shareholder returns is further underscored by a current dividend yield of 2.7%. Additionally, the company's liquid assets exceed short-term obligations, suggesting a strong balance sheet.
Southern Copper's profitability metrics are noteworthy, with a gross profit margin of 57.11% and an operating income margin of 46.74% for the last twelve months as of Q3 2024. These figures indicate efficient operations and cost management. The company's revenue growth of 16.97% in Q3 2024 compared to the previous year also points to positive momentum.
However, investors should note that SCCO is trading at a relatively high P/E ratio of 26.61, which may suggest the stock is priced at a premium compared to its earnings. This is reflected in the InvestingPro Tip that the company is trading at a high P/E ratio relative to near-term earnings growth.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Southern Copper Corp., providing deeper insights into the company's financial position and market performance.
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