UBS Reiterates Sell Rating for Southern Copper Corporation

UBS analyst Myles Allsop reiterated a sell rating on Southern Copper Corporation (NYSE:SCCO) on June 30, 2026. The investment bank set a price target of $160, which suggests a cautious outlook for the copper producer. Shares of SCCO were trading near $168.45 on Tuesday.

Other Institutional Activity in Southern Copper Corporation

Several institutional investors have made moves in Southern Copper Corporation. BlackRock, Inc. increased its holdings by 511,500 shares, bringing its total to 9,399,876 shares valued at about $1.62 billion, a 5.8% increase. Capital World Investors significantly boosted its stake by 2,181,998 shares, ending with 8,611,291 shares worth approximately $1.48 billion, marking a 33.9% increase. State Street Corp added 28,766 shares, now holding 2,942,759 shares valued at $501.3 million, a 1.0% rise. Conversely, Price T Rowe Associates reduced its position by 750,526 shares, now holding 2,889,371 shares worth $492.2 million, reflecting a 20.6% decrease.

Southern Copper Corporation Stock Down 16.9%

Southern Copper Corporation operates in the copper industry and has a market capitalization of about $142.9 billion. The company has a P/E ratio of 28.98 and a forward P/E of 24.93. Its stock has a 52-week low of $85.61 and a high of $221.67, with a beta of 1.108, indicating moderate volatility. The company maintains a strong liquidity position with a current ratio of 4.375 and a quick ratio of 3.729.

Recent Earnings

Southern Copper's recent earnings report showed a revenue of $14.55 billion, with a growth rate of 36.2%. The company posted an EPS of $5.91, supported by a net margin of 34.13% and a return on equity of 46.34%. The next earnings release is scheduled for July 27, 2026.

Dividend

Southern Copper Corporation offers an annual dividend rate of $4.00 per share, yielding 2.34%. The dividend payout ratio stands at 56.33%, reflecting the company's commitment to returning value to shareholders.

Insider Buying and Selling at Southern Copper Corporation

Recent insider transactions at Southern Copper include several sales by Luis Miguel Palomino Bonilla, who sold a total of 404 shares across various dates in May and June 2026 at prices ranging from $177.83 to $200. Additionally, CEO Leonardo Contreras Lerdo de Tejada purchased 400 shares on May 4, 2026.

Analysts Set New Price Targets

On June 30, 2026, UBS maintained its sell rating for Southern Copper with a $160 price target. Earlier, on June 17, JP Morgan also maintained a sell rating with a target of $131.5. Barclays initiated coverage with a sell rating and a $148 target on May 22. The consensus among 16 analysts is an underperform rating, with a mean target price of approximately $165.21.

About Southern Copper Corporation

Southern Copper Corporation is a leading player in the basic materials sector, specifically within the copper industry. Headquartered in Phoenix, Arizona, and led by CEO Engineer Leonardo Contreras Lerdo de Tejada, the company engages in mining, exploring, smelting, and refining copper and other minerals across various countries including Mexico, the U.S., and Peru. With a workforce of over 16,000 employees, Southern Copper operates several major mining and processing facilities, contributing significantly to the copper market.

Bottom Line

UBS's reiteration of a sell rating for Southern Copper highlights the cautious stance some analysts have on the stock. The company's strong market position and financial metrics are noteworthy, but the analyst community remains skeptical about its near-term stock performance. This analysis, based on 13F filings and other data, reflects positions as of the reporting period and may not represent current holdings.