RWC Asset Advisors US LLC significantly increased its stake in Southern Copper Corporation (NYSE: SCCO) during the third quarter, boosting its holdings by 1,286.2%. The fund now owns 77,545 shares, worth $15,714,000, making SCCO its 10th largest position. Other institutional investors have also made substantial moves, with BlackRock Inc. acquiring a new stake worth $1,729,500,000 in the second quarter, and Bank of America Corp DE purchasing a position valued at $318,448,000.
Southern Copper reported record quarterly performance, with revenue of $4.70 billion and earnings per share of $2.15, exceeding analyst expectations. The company attributed its strong results to rising copper prices and expects to produce about 918,000 tons of copper in 2026. Management is also targeting the start of the Tía María project in early 2028, which could support future growth. Additionally, the company is evaluating a $680 million expansion at its Cuajone mine.
Despite the positive news, some analysts remain cautious about SCCO's valuation, suggesting that the strong results may already be reflected in the stock price. The company's stock traded up $1.60 on Friday, reaching $185.19, with a market capitalization of $154.51 billion. Southern Copper has announced a dividend and a 1.0106-for-1 share distribution scheduled for November 3.
Analyst ratings for Southern Copper are mixed, with two analysts rating the stock as a Buy, four as a Hold, and seven as a Sell. The average target price for the stock is $161.28. The company's stock is set to split before the market opens on November 3, with the newly issued shares distributed to shareholders after the closing bell on November 2.