35,556 Shares in Southern Company (The) $SO Bought by High Point Wealth Management LLC

Key Points

• High Point Wealth Management initiated a position in Southern, buying 35,556 shares (~$3.1M) in Q4, which represents 2.9% of its portfolio and is its 7th largest holding.
• Southern raised its quarterly dividend to $0.76 (annualized $3.04, ~3.3% yield) and reported Q4 revenue of $6.98B (up 10.1% YoY) while narrowly missing EPS at $0.55 versus a $0.56 consensus.
• CEO Kimberly Greene sold 25,000 shares and other insiders trimmed positions even as institutional ownership is high at 64.10%, with major managers (Vanguard, Capital World Investors) materially increasing stakes; analyst consensus is a "Hold" with a $99.08 target.

High Point Wealth Management LLC purchased a new position in shares of Southern Company (The) (NYSE:SO - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 35,556 shares of the utilities provider's stock, valued at approximately $3,100,000. Southern accounts for 2.9% of High Point Wealth Management LLC's investment portfolio, making the stock its 7th largest holding.

A number of other large investors have also recently bought and sold shares of SO. Capital World Investors boosted its stake in Southern by 320.3% during the 3rd quarter. Capital World Investors now owns 33,548,852 shares of the utilities provider's stock worth $3,179,425,000 after purchasing an additional 25,567,431 shares during the period. Soroban Capital Partners LP boosted its stake in Southern by 83.8% during the 2nd quarter. Soroban Capital Partners LP now owns 4,097,422 shares of the utilities provider's stock worth $376,266,000 after purchasing an additional 1,867,912 shares during the period. Vanguard Group Inc. boosted its stake in Southern by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 108,057,413 shares of the utilities provider's stock worth $9,422,606,000 after purchasing an additional 1,643,090 shares during the period. Canada Pension Plan Investment Board lifted its stake in shares of Southern by 1,518.4% in the 2nd quarter. Canada Pension Plan Investment Board now owns 1,044,101 shares of the utilities provider's stock worth $95,880,000 after acquiring an additional 979,587 shares during the period. Finally, Balyasny Asset Management L.P. lifted its stake in shares of Southern by 790.6% in the 2nd quarter. Balyasny Asset Management L.P. now owns 811,737 shares of the utilities provider's stock worth $74,542,000 after acquiring an additional 720,589 shares during the period. Institutional investors and hedge funds own 64.10% of the company's stock.

Southern Stock Down 0.4%

Southern stock opened at $93.52 on Friday. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.65 and a quick ratio of 0.47. Southern Company has a 1-year low of $83.09 and a 1-year high of $100.83. The company has a market cap of $105.52 billion, a PE ratio of 23.80, a price-to-earnings-growth ratio of 2.84 and a beta of 0.41. The stock's 50 day moving average price is $95.78 and its 200 day moving average price is $92.15.

Southern (NYSE:SO - Get Free Report) last announced its quarterly earnings data on Wednesday, February 18th. The utilities provider reported $0.55 EPS for the quarter, missing the consensus estimate of $0.56 by ($0.01). Southern had a net margin of 14.69% and a return on equity of 12.52%. The company had revenue of $6.98 billion during the quarter, compared to analyst estimates of $6.41 billion. During the same quarter last year, the business earned $0.50 EPS. The firm's revenue for the quarter was up 10.1% on a year-over-year basis. On average, sell-side analysts predict that Southern Company will post 4.58 EPS for the current fiscal year.

Southern Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 8th. Investors of record on Monday, May 18th will be paid a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 3.3%. This is a positive change from Southern's previous quarterly dividend of $0.74. The ex-dividend date is Monday, May 18th. Southern's dividend payout ratio (DPR) is 77.35%.

Insider Activity

In related news, CEO Kimberly S. Greene sold 25,000 shares of the firm's stock in a transaction dated Monday, March 30th. The shares were sold at an average price of $96.67, for a total value of $2,416,750.00. Following the completion of the sale, the chief executive officer owned 103,602 shares in the company, valued at $10,015,205.34. This trade represents a 19.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Christopher Cummiskey sold 6,669 shares of the firm's stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $96.55, for a total transaction of $643,891.95. Following the completion of the sale, the executive vice president owned 30,800 shares of the company's stock, valued at $2,973,740. This trade represents a 17.80% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.16% of the stock is owned by company insiders.

Analyst Ratings Changes

SO has been the subject of several recent analyst reports. Morgan Stanley reduced their target price on shares of Southern from $94.00 to $92.00 and set an "underweight" rating for the company in a research note on Tuesday. Scotiabank raised their target price on shares of Southern from $101.00 to $103.00 and gave the stock a "sector perform" rating in a research note on Friday, February 20th. Wells Fargo & Company set a $96.00 target price on shares of Southern and gave the stock an "equal weight" rating in a research note on Friday, February 20th. BMO Capital Markets restated an "outperform" rating on shares of Southern in a research note on Friday, February 20th. Finally, Jefferies Financial Group restated a "hold" rating and issued a $102.00 target price on shares of Southern in a research note on Monday, February 23rd. Seven investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Southern currently has a consensus rating of "Hold" and a consensus target price of $99.08.

Southern Profile

Southern Company NYSE: SO is an Atlanta-based energy holding company that provides electric and gas utility services and owns power generation assets across the United States. Founded in 1945, the company operates a portfolio of regulated electric utilities and affiliated businesses that generate, transmit and distribute electricity to residential, commercial and industrial customers.

Southern's principal regulated electric subsidiaries include Georgia Power, Alabama Power and Mississippi Power, which serve large portions of the southeastern United States.

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