Southern (NYSE:SO) Sees Strong Trading Volume – Should You Buy?

Southern Company (The) (NYSE:SO) shares saw unusually-high trading volume on Friday. Approximately 14,470,975 shares changed hands during trading, an increase of 141% from the average daily volume of 5,995,432 shares. The stock last traded at $93.6660 and had previously closed at $92.47.

Wall Street Analyst Weigh In

SO has been the topic of a number of analyst reports. BMO Capital Markets reiterated an “outperform” rating on shares of Southern in a research report on Wednesday, October 21st. Morgan Stanley dropped their price objective on shares of Southern from $85.00 to $84.00 and set an “underweight” rating on the stock in a research note on Wednesday, October 21st. KeyCorp cut their price objective on shares of Southern from $79.00 to $74.00 and set an “underweight” rating for the company in a research report on Tuesday, October 13th. Mizuho set a $106.00 target price on shares of Southern and gave the stock an “outperform” rating in a research note on Friday, July 31st. Finally, Citigroup lowered their target price on shares of Southern from $114.00 to $104.00 and set a “buy” rating on the stock in a report on Friday, September 25th. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $97.32.

Southern Stock Up 1.3%

The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.62 and a current ratio of 0.84. The firm has a fifty day moving average price of $88.67 and a 200 day moving average price of $92.61. The firm has a market capitalization of $109.01 billion, a price-to-earnings ratio of 21.33, a PEG ratio of 2.39 and a beta of 0.30.

Southern (NYSE:SO) last announced its quarterly earnings data on Thursday, November 5th. The utilities provider reported $1.94 earnings per share for the quarter, topping analysts’ consensus estimates of $1.71 by $0.23. The firm had revenue of $8.84 billion for the quarter, compared to analyst estimates of $8.38 billion. Southern had a return on equity of 13.57% and a net margin of 16.00%. Southern’s quarterly revenue was up 13.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.54 earnings per share. As a group, sell-side analysts expect that Southern Company will post 4.66 EPS for the current fiscal year.

Southern Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, December 7th. Stockholders of record on Monday, November 16th will be paid a dividend of $0.76 per share. The ex-dividend date of this dividend is Monday, November 16th. This represents a $3.04 dividend on an annualized basis and a dividend yield of 3.2%. Southern’s dividend payout ratio is 69.25%.

Insider Buying and Selling at Southern

In other news, EVP Sterling Spainhour, Jr. sold 3,333 shares of the stock in a transaction dated Friday, November 6th. The shares were sold at an average price of $91.81, for a total value of $306,002.73. Following the completion of the transaction, the executive vice president owned 31,886 shares in the company, valued at $2,927,453.66. This trade represents a 9.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.16% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SO. First Fiduciary Investment Counsel Inc. lifted its position in shares of Southern by 39.9% during the third quarter. First Fiduciary Investment Counsel Inc. now owns 130,614 shares of the utilities provider’s stock worth $10,827,000 after purchasing an additional 37,247 shares during the last quarter. OMERS ADMINISTRATION Corp increased its holdings in Southern by 29.2% in the first quarter. OMERS ADMINISTRATION Corp now owns 50,628 shares of the utilities provider’s stock valued at $4,887,000 after buying an additional 11,448 shares during the last quarter. Glenmede Trust Co. NA increased its holdings in Southern by 19.1% in the first quarter. Glenmede Trust Co. NA now owns 92,289 shares of the utilities provider’s stock valued at $8,908,000 after buying an additional 14,798 shares during the last quarter. Mystic Asset Management Inc. bought a new stake in Southern in the second quarter valued at about $1,908,000. Finally, BIP Wealth LLC acquired a new stake in Southern during the second quarter valued at approximately $3,059,000. 64.10% of the stock is currently owned by institutional investors and hedge funds.

About Southern

Southern Company is an energy holding company based in Atlanta, Georgia. Through its subsidiaries, it generates, transmits and distributes electricity and provides natural gas service, primarily across the southeastern United States. Its electric utility businesses include Alabama Power, Georgia Power and Mississippi Power, which serve customers in their respective states. Southern Company also owns Southern Power, which develops and operates wholesale power generation assets, and Southern Company Gas, whose businesses distribute natural gas to customers in several states.