Capital Innovations LLC Takes $10.10 Million Position in Southern Company (The) $SO

Key Points

• Capital Innovations LLC opened a new position in Southern Company, buying 115,871 shares worth about $10.1 million. The stake represents 2.9% of its portfolio and is its 15th-largest holding.
• Southern reported better-than-expected quarterly results, with EPS of $1.32 versus the $1.21 consensus and revenue of $8.40 billion versus estimates of $8.07 billion. Revenue rose 8% year over year.
• The company also raised its quarterly dividend to $0.76 per share from $0.74, implying an annualized payout of $3.04 and a 3.4% yield. Analysts currently have an overall Hold rating on the stock, with a consensus price target of $99.38.

Capital Innovations LLC acquired a new stake in Southern Company (The) (NYSE:SO - Free Report) during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 115,871 shares of the utilities provider's stock, valued at approximately $10,104,000. Southern accounts for 2.9% of Capital Innovations LLC's investment portfolio, making the stock its 15th biggest holding.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Strive Asset Management LLC acquired a new position in Southern during the 3rd quarter worth approximately $37,000. Spirepoint Private Client LLC raised its stake in Southern by 13.3% during the 4th quarter. Spirepoint Private Client LLC now owns 97,631 shares of the utilities provider's stock worth $8,513,000 after buying an additional 11,460 shares during the period. BI Asset Management Fondsmaeglerselskab A S raised its stake in Southern by 64.1% during the 3rd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 71,506 shares of the utilities provider's stock worth $6,777,000 after buying an additional 27,920 shares during the period. Caprock Group LLC acquired a new position in Southern during the 3rd quarter worth approximately $1,584,000. Finally, ABN AMRO Bank N.V. acquired a new position in Southern during the 3rd quarter worth approximately $1,972,000. 64.10% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on SO. Morgan Stanley reaffirmed an "underweight" rating and set a $87.00 price target on shares of Southern in a research note on Thursday, May 21st. Evercore raised Southern from an "in-line" rating to an "outperform" rating and set a $111.00 price target on the stock in a research note on Thursday, March 5th. Wells Fargo & Company set a $96.00 price objective on Southern and gave the stock an "equal weight" rating in a report on Friday, February 20th. Mizuho set a $105.00 price objective on Southern in a report on Friday, May 1st. Finally, Truist Financial decreased their price objective on Southern from $103.00 to $100.00 and set a "hold" rating for the company in a report on Friday. Seven 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 company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $99.38.

Southern Trading Up 1.6%

NYSE SO opened at $90.42 on Wednesday. The firm has a market capitalization of $101.93 billion, a P/E ratio of 23.01, a PEG ratio of 2.69 and a beta of 0.34. The business has a fifty day simple moving average of $94.47 and a 200 day simple moving average of $91.83. Southern Company has a 12 month low of $83.80 and a 12 month high of $100.83. The company has a current ratio of 0.65, a quick ratio of 0.45 and a debt-to-equity ratio of 1.68.

Southern (NYSE:SO - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $1.32 EPS for the quarter, beating analysts' consensus estimates of $1.21 by $0.11. The business had revenue of $8.40 billion during the quarter, compared to analyst estimates of $8.07 billion. Southern had a return on equity of 12.64% and a net margin of 14.46%.Southern's quarterly revenue was up 8.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.23 EPS. On average, analysts predict that Southern Company will post 4.58 EPS for the current fiscal year.

Southern Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 8th. Stockholders of record on Monday, May 18th will be issued a $0.76 dividend. This is a boost from Southern's previous quarterly dividend of $0.74. This represents a $3.04 annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend is Monday, May 18th. Southern's dividend payout ratio is currently 77.35%.

Insider Activity at Southern

In other news, CEO Kimberly S. Greene sold 25,000 shares of the company's stock in a transaction that occurred on Monday, March 30th. The stock was sold at an average price of $96.67, for a total value of $2,416,750.00. Following the completion of the transaction, the chief executive officer directly owned 103,602 shares of the company's stock, valued at $10,015,205.34. This represents a 19.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Christopher Cummiskey sold 6,669 shares of the company's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $96.55, for a total value of $643,891.95. Following the completion of the transaction, the executive vice president directly owned 30,800 shares of the company's stock, valued at approximately $2,973,740. This represents a 17.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.16% of the company's stock.

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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