Bank OZK Makes New $4.28 Million Investment in Southern Company (The) $SO

Key Points

• Bank OZK acquired 44,723 Southern Company shares worth approximately $4.28 million in the second quarter, making the utility stock 1.3% of its portfolio and its 21st-largest holding.
• Institutional ownership remains significant at 64.1%, with several investors increasing or initiating positions, including Mawer Investment Management, which raised its stake by 121.4%.
• Southern reported quarterly EPS of $1.13, beating estimates, and announced a $0.76 quarterly dividend, equivalent to a 3.4% yield. Analysts maintain a consensus “Hold” rating with an average price target of $100.09.

Bank OZK bought a new stake in Southern Company (The) (NYSE:SO - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 44,723 shares of the utilities provider's stock, valued at approximately $4,280,000. Southern accounts for approximately 1.3% of Bank OZK's portfolio, making the stock its 21st biggest position.

Other institutional investors and hedge funds have also bought and sold shares of the company. Marble Wealth LLC bought a new position in Southern during the fourth quarter valued at $4,443,000. Wolverine Asset Management LLC bought a new stake in shares of Southern in the 4th quarter worth about $2,462,000. Mawer Investment Management Ltd. boosted its stake in shares of Southern by 121.4% during the 4th quarter. Mawer Investment Management Ltd. now owns 1,767,773 shares of the utilities provider's stock worth $154,150,000 after purchasing an additional 969,493 shares during the period. OMERS ADMINISTRATION Corp boosted its stake in shares of Southern by 29.2% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 50,628 shares of the utilities provider's stock worth $4,887,000 after purchasing an additional 11,448 shares during the period. Finally, M&T Bank Corp grew its holdings in Southern by 7.1% during the 4th quarter. M&T Bank Corp now owns 158,292 shares of the utilities provider's stock valued at $13,803,000 after purchasing an additional 10,531 shares during the last quarter. 64.10% of the stock is owned by hedge funds and other institutional investors.

Southern Stock Down 0.9%

Shares of NYSE:SO opened at $88.94 on Friday. The business's 50 day moving average is $94.22 and its 200 day moving average is $94.42. The stock has a market cap of $102.32 billion, a P/E ratio of 21.33, a price-to-earnings-growth ratio of 1.72 and a beta of 0.34. Southern Company has a 52-week low of $83.80 and a 52-week high of $100.83. The company has a quick ratio of 0.59, a current ratio of 0.79 and a debt-to-equity ratio of 1.62.

Southern (NYSE:SO - Get Free Report) last issued its earnings results on Wednesday, July 29th. The utilities provider reported $1.13 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.12. The business had revenue of $6.98 billion during the quarter, compared to analysts' expectations of $7.23 billion. Southern had a return on equity of 12.93% and a net margin of 15.43%.The business's revenue for the quarter was up .1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.79 EPS. Sell-side analysts predict that Southern Company will post 4.59 EPS for the current year.

Southern Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 17th will be given a dividend of $0.76 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $3.04 dividend on an annualized basis and a yield of 3.4%. Southern's dividend payout ratio (DPR) is 72.90%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Weiss Ratings reissued a "buy (b)" rating on shares of Southern in a research report on Wednesday, July 29th. Jefferies Financial Group set a $99.00 target price on Southern in a research note on Monday, June 22nd. Barclays reduced their price target on Southern from $99.00 to $98.00 and set an "equal weight" rating on the stock in a report on Thursday, June 18th. Morgan Stanley dropped their price objective on Southern from $92.00 to $89.00 and set an "underweight" rating for the company in a report on Friday, August 21st. Finally, Wall Street Zen downgraded Southern from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Seven analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $100.09.

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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