Aquatic Capital Management LLC Purchases New Holdings in Southern Company (The) $SO

Key Points

• Aquatic Capital Management established a new stake in Southern Company (NYSE:SO) in Q3, buying 147,459 shares worth about $13.98 million, and institutional investors now own roughly 64.1% of the stock.
• Southern narrowly missed earnings with $0.55 EPS (vs. $0.56 est.) while reporting revenue of $6.98 billion, up 10.1% year-over-year; analysts expect about 4.29 EPS for the current fiscal year.
• The company has a market cap of ~$108 billion, a P/E of 24.95, and recently paid a quarterly dividend of $0.74 (annualized yield ~3.0% with a 75.3% payout ratio); Wall Street’s consensus rating is a Hold with a $98.08 target.

Aquatic Capital Management LLC acquired a new position in shares of Southern Company (The) (NYSE:SO - Free Report) during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 147,459 shares of the utilities provider's stock, valued at approximately $13,975,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Cloud Capital Management LLC bought a new position in shares of Southern during the third quarter valued at approximately $25,000. Grey Fox Wealth Advisors LLC bought a new stake in shares of Southern in the 3rd quarter worth approximately $29,000. Steigerwald Gordon & Koch Inc. purchased a new stake in shares of Southern in the 3rd quarter worth approximately $34,000. Chilton Capital Management LLC increased its position in Southern by 120.1% during the 3rd quarter. Chilton Capital Management LLC now owns 361 shares of the utilities provider's stock valued at $34,000 after buying an additional 197 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd bought a new position in Southern during the 3rd quarter valued at approximately $35,000. Hedge funds and other institutional investors own 64.10% of the company's stock.

Southern Stock Performance

Shares of SO opened at $98.06 on Friday. The company has a market cap of $107.97 billion, a price-to-earnings ratio of 24.95, a P/E/G ratio of 2.96 and a beta of 0.44. The business's fifty day simple moving average is $91.79 and its two-hundred day simple moving average is $91.58. Southern Company has a 12 month low of $83.09 and a 12 month high of $100.83. The company has a current ratio of 0.65, a quick ratio of 0.47 and a debt-to-equity ratio of 1.69.

Southern (NYSE:SO - Get Free Report) last posted its quarterly earnings results on Wednesday, February 18th. The utilities provider reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.01). The business had revenue of $6.98 billion during the quarter, compared to analysts' expectations of $6.41 billion. Southern had a return on equity of 12.52% and a net margin of 14.69%.The firm's revenue for the quarter was up 10.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.50 EPS. Research analysts anticipate that Southern Company will post 4.29 earnings per share for the current fiscal year.

Southern Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 6th. Shareholders of record on Tuesday, February 17th were given a $0.74 dividend. The ex-dividend date of this dividend was Tuesday, February 17th. This represents a $2.96 dividend on an annualized basis and a yield of 3.0%. Southern's payout ratio is 75.32%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SO shares. JPMorgan Chase & Co. dropped their target price on Southern from $104.00 to $93.00 and set a "neutral" rating on the stock in a report on Monday, December 15th. Mizuho set a $104.00 price target on Southern and gave the company an "outperform" rating in a report on Friday, February 20th. Evercore raised Southern from an "in-line" rating to an "outperform" rating and set a $111.00 price target for the company in a research report on Thursday, March 5th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $105.00 price target on shares of Southern in a research note on Friday, January 23rd. Finally, Morgan Stanley reissued an "underweight" rating on shares of Southern in a research report on Friday, February 20th. Six investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Southern currently has an average rating of "Hold" and a consensus target price of $98.08.

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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