Southern (NYSE:SO) Hits New 52-Week High After Better-Than-Expected Earnings

Shares of The Southern Company (NYSE:SO) hit a new 52-week high on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $75.92 and last traded at $75.56, with a volume of 596966 shares traded. The stock had previously closed at $74.52.

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

Southern Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 6th. Stockholders of record on Monday, May 20th will be paid a $0.72 dividend. This is a boost from Southern’s previous quarterly dividend of $0.70. This represents a $2.88 annualized dividend and a dividend yield of 3.80%. The ex-dividend date is Friday, May 17th. Southern’s dividend payout ratio (DPR) is presently 72.35%.

Analyst Upgrades and Downgrades

SO has been the topic of several analyst reports. UBS Group cut shares of Southern from a “buy” rating to a “neutral” rating and reduced their target price for the company from $78.00 to $76.00 in a report on Thursday, April 4th. Mizuho lifted their price objective on shares of Southern from $73.00 to $76.00 and gave the stock a “buy” rating in a research report on Tuesday, April 2nd. Barclays increased their target price on Southern from $65.00 to $66.00 and gave the company an “equal weight” rating in a report on Monday, April 15th. Royal Bank of Canada restated an “outperform” rating and issued a $80.00 price target on shares of Southern in a research note on Wednesday, February 21st. Finally, Wells Fargo & Company upped their price objective on Southern from $72.00 to $77.00 and gave the stock an “equal weight” rating in a research report on Friday. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $74.71.

Insider Transactions at Southern

In other news, EVP Christopher Cummiskey sold 899 shares of the stock in a transaction that occurred on Tuesday, February 6th. The stock was sold at an average price of $67.06, for a total transaction of $60,286.94. Following the completion of the transaction, the executive vice president now directly owns 22,502 shares of the company’s stock, valued at approximately $1,508,984.12. The sale was disclosed in a document filed with the SEC, which is accessible through this link. In other news, EVP Christopher Cummiskey sold 899 shares of the company’s stock in a transaction on Tuesday, February 6th. The shares were sold at an average price of $67.06, for a total transaction of $60,286.94. Following the transaction, the executive vice president now directly owns 22,502 shares of the company’s stock, valued at approximately $1,508,984.12. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Stephen E. Kuczynski sold 5,000 shares of the firm’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $68.92, for a total transaction of $344,600.00. Following the completion of the sale, the chief executive officer now 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 have sold a total of 20,025 shares of company stock worth $1,424,402 over the last ninety days. 0.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Southern

Institutional investors and hedge funds have recently modified their holdings of the company. Rockline Wealth Management LLC acquired a new position in Southern during the fourth quarter worth about $1,945,000. Savant Capital LLC lifted its stake in Southern by 4.3% in the 4th quarter. Savant Capital LLC now owns 65,937 shares of the utilities provider’s stock valued at $4,624,000 after buying an additional 2,691 shares in the last quarter. Zullo Investment Group Inc. grew its holdings in Southern by 4.8% during the 4th quarter. Zullo Investment Group Inc. now owns 3,437 shares of the utilities provider’s stock valued at $241,000 after buying an additional 157 shares during the last quarter. Global Retirement Partners LLC increased its position in Southern by 5.8% during the fourth quarter. Global Retirement Partners LLC now owns 14,856 shares of the utilities provider’s stock worth $1,045,000 after buying an additional 819 shares in the last quarter. Finally, Apella Capital LLC acquired a new position in shares of Southern in the fourth quarter worth $301,000. Institutional investors and hedge funds own 64.10% of the company’s stock.

Southern Price Performance

The firm has a market capitalization of $83.03 billion, a PE ratio of 19.60, a P/E/G ratio of 4.72 and a beta of 0.48. The company has a 50-day moving average price of $70.22 and a 200-day moving average price of $69.58. The company has a debt-to-equity ratio of 1.62, a current ratio of 0.77 and a quick ratio of 0.56.

About Southern

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.