Arrowstreet Capital Limited Partnership Acquires 445,652 Shares of Southern Company (The) $SO

Key Points

• Arrowstreet Capital significantly increased its Southern Company stake by acquiring 445,652 shares in the first quarter, bringing its holdings to 559,876 shares valued at approximately $54.0 million. Institutional investors collectively own 64.1% of Southern’s stock.
• Southern reported quarterly earnings of $1.32 per share, exceeding estimates of $1.21, while revenue rose 8% year over year to $8.40 billion. The company is expected to earn $4.58 per share for the current year.
• Southern declared a quarterly dividend of $0.76 per share, equivalent to an annualized $3.04 payout and a 3.2% yield. Analyst sentiment remains “Hold,” with an average price target of $100.21.

Arrowstreet Capital Limited Partnership lifted its holdings in Southern Company (The) (NYSE:SO - Free Report) by 390.2% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 559,876 shares of the utilities provider's stock after acquiring an additional 445,652 shares during the period. Arrowstreet Capital Limited Partnership's holdings in Southern were worth $54,039,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in SO. Norges Bank bought a new stake in shares of Southern in the 4th quarter valued at approximately $1,111,450,000. Capital World Investors increased its position in shares of Southern by 22.6% during the 4th quarter. Capital World Investors now owns 41,142,076 shares of the utilities provider's stock valued at $3,587,589,000 after purchasing an additional 7,593,224 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Southern by 18.7% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 34,459,462 shares of the utilities provider's stock valued at $3,004,866,000 after purchasing an additional 5,436,212 shares during the last quarter. Soroban Capital Partners LP raised its holdings 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 valued at $376,266,000 after buying an additional 1,867,912 shares during the period. Finally, Vanguard Group Inc. raised its holdings in Southern by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 108,057,413 shares of the utilities provider's stock valued at $9,422,606,000 after buying an additional 1,643,090 shares during the period. Hedge funds and other institutional investors own 64.10% of the company's stock.

Southern Stock Performance

Shares of Southern stock opened at $96.45 on Tuesday. The company has a quick ratio of 0.45, a current ratio of 0.65 and a debt-to-equity ratio of 1.68. The stock's fifty day moving average is $94.49 and its two-hundred day moving average is $93.80. Southern Company has a 52 week low of $83.80 and a 52 week high of $100.83. The company has a market capitalization of $108.73 billion, a PE ratio of 24.54, a price-to-earnings-growth ratio of 1.90 and a beta of 0.34.

Southern (NYSE:SO - Get Free Report) last released its earnings results on Wednesday, April 29th. The utilities provider reported $1.32 earnings per share for the quarter, topping the consensus estimate of $1.21 by $0.11. Southern had a return on equity of 12.64% and a net margin of 14.46%.The business had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.07 billion. During the same period last year, the company earned $1.23 earnings per share. The business's revenue for the quarter was up 8.0% compared to the same quarter last year. As a group, analysts expect that Southern Company will post 4.58 earnings per share for the current year.

Southern Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 17th will be paid a $0.76 dividend. This represents a $3.04 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Monday, August 17th. Southern's dividend payout ratio is currently 77.35%.

Analyst Ratings Changes

A number of brokerages recently issued reports on SO. KeyCorp downgraded Southern from a "sector weight" rating to an "underweight" rating and set a $79.00 price target for the company. in a research report on Thursday. Barclays cut their price objective on shares of Southern from $99.00 to $98.00 and set an "equal weight" rating on the stock in a research report on Thursday, June 18th. Citigroup reissued a "buy" rating on shares of Southern in a research note on Friday, April 10th. JPMorgan Chase & Co. raised their target price on shares of Southern from $101.00 to $104.00 and gave the stock a "neutral" rating in a report on Thursday, July 16th. Finally, Seaport Research Partners cut shares of Southern from a "buy" rating to a "neutral" rating in a research note on Monday, April 20th. Seven investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $100.21.

Southern Company 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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