Southern (NYSE:SO) Hits New 12-Month High Following Better-Than-Expected Earnings

The Southern Company (NYSE:SO) shares reached a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $75.92 and last traded at $75.56, with a volume of 596966 shares. The stock had previously closed at $74.52.

The utilities provider reported $1.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.90 by $0.13. The firm had revenue of $6.65 billion for the quarter, compared to analysts’ expectations of $6.59 billion. Southern had a net margin of 16.74% and a return on equity of 12.11%. The business’s revenue for the quarter was up 2.6% on a year-over-year basis. During the same period last year, the firm earned $0.79 earnings per share.

Southern Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 6th. Investors of record on Monday, May 20th will be issued a dividend of $0.72 per share. The ex-dividend date is Friday, May 17th. This represents a $2.88 dividend on an annualized basis and a yield of 3.80%. This is a boost from Southern’s previous quarterly dividend of $0.70. Southern’s payout ratio is currently 72.35%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. UBS Group downgraded Southern from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $78.00 to $76.00 in a report on Thursday, April 4th. Wells Fargo & Company increased their target price on Southern from $72.00 to $77.00 and gave the stock an “equal weight” rating in a report on Friday. Bank of America boosted their price target on Southern from $70.00 to $73.00 and gave the company a “neutral” rating in a report on Tuesday, April 23rd. Royal Bank of Canada restated an “outperform” rating and set a $80.00 target price on shares of Southern in a report on Wednesday, February 21st. Finally, BMO Capital Markets restated an “outperform” rating and issued a $76.00 price target (up from $72.00) on shares of Southern in a research note on Monday, April 1st. One research analyst has rated the stock with a sell rating, six have given a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Southern has a consensus rating of “Moderate Buy” and a consensus price target of $74.71.

Insiders Place Their Bets

In related news, CEO Kimberly S. Greene sold 9,126 shares of the firm’s stock in a transaction that occurred on Wednesday, May 1st. The shares were sold at an average price of $75.04, for a total value of $684,815.04. Following the completion of the transaction, the chief executive officer now directly owns 121,504 shares of the company’s stock, valued at approximately $9,117,660.16. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In other Southern news, CEO Kimberly S. Greene sold 9,126 shares of the firm’s stock in a transaction dated Wednesday, May 1st. The stock was sold at an average price of $75.04, for a total value of $684,815.04. Following the completion of the transaction, the chief executive officer now owns 121,504 shares in the company, valued at approximately $9,117,660.16. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Stephen E. Kuczynski sold 5,000 shares of Southern stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $68.92, for a total value of $344,600.00. Following the transaction, the chief executive officer now directly owns 126,528 shares of the company’s stock, valued at approximately $8,720,309.76. The disclosure for this sale can be found here. Insiders sold 20,025 shares of company stock valued at $1,424,402 over the last ninety days. 0.18% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Voisard Asset Management Group Inc. purchased a new stake in shares of Southern during the 4th quarter valued at $31,000. Scarborough Advisors LLC bought a new stake in Southern during the fourth quarter worth about $31,000. Versant Capital Management Inc boosted its holdings in shares of Southern by 62.0% in the 1st quarter. Versant Capital Management Inc now owns 444 shares of the utilities provider’s stock worth $32,000 after purchasing an additional 170 shares in the last quarter. BKM Wealth Management LLC bought a new position in shares of Southern during the 4th quarter valued at about $34,000. Finally, Valley National Advisers Inc. raised its holdings in shares of Southern by 63.9% during the 4th quarter. Valley National Advisers Inc. now owns 526 shares of the utilities provider’s stock valued at $36,000 after buying an additional 205 shares in the last quarter. 64.10% of the stock is owned by institutional investors.

Southern Stock Up 0.7 %

The company has a debt-to-equity ratio of 1.62, a quick ratio of 0.56 and a current ratio of 0.77. The stock has a 50-day moving average of $70.22 and a two-hundred day moving average of $69.58. The company has a market cap of $83.03 billion, a P/E ratio of 19.60, a P/E/G ratio of 4.72 and a beta of 0.48.

Southern Company Profile

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, gas distribution operations, and gas pipeline investments operations.