Southern (NYSE:SO) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Southern from “hold” to “sell.” Overall analyst sentiment remains “hold,” with eight Buy, eleven Hold, and two Sell ratings and an average price target of $97.24.
• Southern beat third-quarter expectations, reporting adjusted EPS of $1.94 versus $1.71 expected and revenue of $8.84 billion, up 13% year over year.
• Management cited strong data-center demand and 21 GW of large-load contracts, but fourth-quarter 2026 EPS guidance of $0.30 is below analysts’ $0.44 estimate.

Southern (NYSE:SO - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday, Wall Street Zen reports.

SO has been the subject of several other research reports. Morgan Stanley decreased their price objective on Southern from $85.00 to $84.00 and set an "underweight" rating for the company in a report on Wednesday, October 21st. Barclays reduced their price objective on Southern from $101.00 to $92.00 and set an "equal weight" rating on the stock in a report on Friday, October 16th. Citigroup cut their price objective on shares of Southern from $114.00 to $104.00 and set a "buy" rating for the company in a report on Friday, September 25th. BMO Capital Markets reissued an "outperform" rating on shares of Southern in a research note on Wednesday, October 21st. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Southern in a report on Tuesday, October 27th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $97.24.

Southern Stock Performance

Shares of Southern stock opened at $92.16 on Friday. The firm has a market capitalization of $106.02 billion, a P/E ratio of 20.99, a P/E/G ratio of 2.49 and a beta of 0.30. The company has a quick ratio of 0.59, a current ratio of 0.79 and a debt-to-equity ratio of 1.62. The firm's 50 day moving average is $88.16 and its two-hundred day moving average is $92.48. Southern has a 52 week low of $81.69 and a 52 week high of $99.58.

Southern (NYSE:SO - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The utilities provider reported $1.94 EPS for the quarter, topping the consensus estimate of $1.71 by $0.23. The company had revenue of $8.84 billion during the quarter, compared to analyst estimates of $8.38 billion. Southern had a return on equity of 12.93% and a net margin of 15.43%. The firm's revenue was up 13.0% on a year-over-year basis. During the same period in the prior year, the firm posted $1.54 earnings per share. Research analysts forecast that Southern will post 4.59 EPS for the current fiscal year.

Institutional Investors Weigh In On Southern

Several institutional investors and hedge funds have recently modified their holdings of the stock. Uptick Partners LLC increased its holdings in Southern by 1.5% during the first quarter. Uptick Partners LLC now owns 7,601 shares of the utilities provider's stock valued at $734,000 after buying an additional 110 shares during the last quarter. Optivise Advisory Services LLC raised its holdings in Southern by 3.8% in the 3rd quarter. Optivise Advisory Services LLC now owns 3,055 shares of the utilities provider's stock worth $253,000 after purchasing an additional 111 shares during the period. KCM Investment Advisors LLC grew its position in shares of Southern by 0.3% in the first quarter. KCM Investment Advisors LLC now owns 34,328 shares of the utilities provider's stock valued at $3,313,000 after purchasing an additional 115 shares in the last quarter. Compass Wealth Management LLC increased its holdings in Southern by 3.7% in the 3rd quarter. Compass Wealth Management LLC now owns 3,265 shares of the utilities provider's stock valued at $271,000 after purchasing an additional 115 shares during the last quarter. Finally, Advisortrust Partners LLC grew its position in shares of Southern by 5.0% during the first quarter. Advisortrust Partners LLC now owns 2,601 shares of the utilities provider's stock worth $251,000 after buying an additional 125 shares in the last quarter. 64.10% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Southern

Here are the key news stories impacting Southern this week:

• Positive Sentiment: Third-quarter adjusted EPS of $1.94 beat the $1.71 consensus estimate, while revenue rose 13% year over year to $8.84 billion, also ahead of expectations. The company’s earnings release reported $1.77 per share on its stated basis, compared with $1.55 a year earlier. Article: Southern Co. Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management highlighted surging data-center demand and 21 GW of large-load contracts. Its 2026 EPS guidance of $4.70 is above the $4.59 consensus, and 2028 guidance of $5.25–$5.45 spans from consensus to above it—supporting the longer-term growth outlook. Article: Southern Q3 Earnings Call Highlights Growth and Capital Upside
• Neutral Sentiment: A potential $100 billion capital plan could enable investment to serve rising electricity demand, but its eventual scale and funding needs remain considerations for investors. Article: Southern Q3 Earnings Call Highlights Growth and Capital Upside
• Negative Sentiment: Fourth-quarter 2026 EPS guidance of $0.30 is below analysts’ $0.44 estimate. That near-term shortfall may temper the positive reaction to the quarterly beat and full-year guidance. Article: Southern Company Q3 Earnings Report

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.

Formed in 1945, Southern Company has grown from a regional electric utility holding company into a diversified energy provider.

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