On September 30, 2023, it was reported that Hartford Investment Management Co. had reduced its stake in The Southern Company (NYSE:SO) by 15.5% in the second quarter. According to the company’s disclosure with the Securities & Exchange Commission, Hartford Investment Management Co. owned 77,438 shares of Southern’s stock after selling 14,205 shares during the quarter. At the end of the reporting period, these holdings were valued at $5,440,000.
Following this news, several analysts have offered their reports on Southern’s stock. Bank of America upgraded their rating on Southern from “underperform” to “neutral” and increased their price target for the stock from $67.00 to $68.00 in a research report issued on September 13th. Similarly, Morgan Stanley raised their price objective from $67.00 to $69.00 and gave the company an “equal weight” rating in a report released on September 21st. However, Guggenheim lowered their price target on Southern’s shares from $79.00 to $77.00 in a research note published on July 7th. On July 3rd, The Goldman Sachs Group upgraded Southern’s rating from “buy” to “conviction-buy,” while LADENBURG THALM/SH SH initiated coverage on the stock on August 9th with a “buy” rating and a price objective of $72.00.
The ratings given by analysts vary widely; three analysts have assigned a sell rating to the stock while five have given it a hold rating and five others have provided buy ratings.According to Bloomberg.com, as of now, the consensus rating for Southern is listed as “Hold,” with an average target price estimated at $73.27.
SO stock began trading at $65.07 per share on Friday.The company has a quick ratio of 0.62 and a current ratio of 0.83, indicating its ability to meet short-term obligations. With a debt-to-equity ratio of 1.59, the company’s financing structure leans towards more liabilities than equity. Southern carries a market capitalization value of $70.96 billion, and has a price-to-earnings (P/E) ratio of 22.99 along with a PEG ratio of 4.59, suggesting the stock is relatively expensive in terms of valuation metrics.The stock has experienced a fifty-day moving average at $69.11 and a 200-day moving average at $70.29.Currently, Southern’s shares have reached a 52-week low at $58.85 and a 52-week high at $75.80.
In conclusion, Hartford Investment Management Co.’s decision to decrease its stake in The Southern Company has attracted attention from various analysts who have provided mixed reviews on the stock’s rating and price target. With its recent opening share price and trading range within the year, investors will be keen to analyze Southern’s financial performance going forward to make informed investment decisions based on these evaluations.
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Significant Changes in Institutional Investor Positions and Analyst Ratings Surround Southern Company (SO) Stock
September 30, 2023 – Southern Company (NYSE:SO) has seen significant changes in its institutional investor and hedge fund positions in recent months. Daymark Wealth Partners LLC boosted its holdings in Southern by a staggering 434.7% during the second quarter, with an additional 21,200 shares purchased. This increased their stake to 26,077 shares valued at $1,832,000.
Norris Perne & French LLP MI also raised its position in Southern by 2.0% during the second quarter, obtaining an extra 6,137 shares worth $22,037,000. Golden State Equity Partners increased their stake by 184.0%, adding 8,282 shares to their portfolio valued at $898,000 in the last quarter.
Furthermore, Teacher Retirement System of Texas raised its position in Southern by 24.8% during the second quarter and now owns an additional 67,507 shares worth $23,838,000. CHICAGO TRUST Co NA also grew its stake by acquiring an extra 845 shares from Southern during the same period.
These changes reflect the investment strategies of these institutions and hedge funds as they seek to diversify their portfolios and potentially capitalize on the performance of Southern in the utilities sector.
In related news on September- CEO Stephen E. Kuczynski sold a considerable number of his shares of Southern’s stock for approximately $339,150 while CEO Kimberly S. Greene sold around$1 million worth of stock on July.
Analysts have closely examined this stock and provided ratings accordingly. Bank of America upgraded Southern from an “underperform” rating to “neutral,” while Morgan Stanley increased their price target from $67 to $69 and gave it an “equal weight” rating.
However,Guggenheim dropped their price objective on shares of Southern from$79 to $77,making it less attractive than before.The Goldman Sachs Group had a different perspective and upgraded their rating on Southern from “buy” to “conviction-buy.”
According to Bloomberg.com, the stock currently has an average rating of “Hold” with a consensus target price of $73.27.
Southern’s most recent quarterly earnings data were announced on August 3rd. They reported earnings per share of $0.79, surpassing the consensus estimate of $0.74 by $0.05. The company’s net margin was recorded at 11.17%, and it had a return on equity (ROE) of 9.86%.
The decrease in revenue during this particular quarter was significant, coming in at $5.75 billion compared to analyst estimates of $6.47 billion.Southern Company is expected to post earnings per share of 3.6 for the current fiscal year.
Additionally, Southern recently disclosed a quarterly dividend which had investors paid a dividend of $0.70 per share on September 6th.The ex-dividend date for this payout was August 18th.This represents an annualized dividend yield of 4.30% and a payout ratio (DPR) of 98.94%.
In conclusion, the changes in institutional investor and hedge fund positions, the CEO’s recent sales of shares, and the diverse range of analyst ratings demonstrate an elevated level of activity surrounding Southern Company’s stock.Have said this means that shareholders believe in SO’s future prospects despite challenges faced by utilities providers.It will be essential to monitor market developments as they arise, as they may impact sentiment towards Souther Company and its stock going forward.
