Forsta AP Fonden Grows Position in Southern Company (The) $SO

Key Points

• Forsta AP Fonden increased its stake in Southern Company by 24.1% in the fourth quarter, adding 80,600 shares to bring its total holding to 415,300 shares worth about $36.2 million.
• Southern reported better-than-expected quarterly results, with EPS of $1.32 and revenue of $8.40 billion, both topping analyst estimates.
• The company raised its quarterly dividend to $0.76 per share from $0.74, implying a 3.3% annualized yield, even as some insiders recently sold shares.

Forsta AP Fonden raised its holdings in shares of Southern Company (The) (NYSE:SO - Free Report) by 24.1% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 415,300 shares of the utilities provider's stock after purchasing an additional 80,600 shares during the quarter. Forsta AP Fonden's holdings in Southern were worth $36,214,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in SO. Cloud Capital Management LLC purchased a new stake in Southern during the third quarter valued at about $25,000. Triumph Capital Management purchased a new stake in Southern during the third quarter valued at about $29,000. Migdal Insurance & Financial Holdings Ltd. purchased a new stake in Southern during the fourth quarter valued at about $31,000. Legacy Wealth Managment LLC ID purchased a new stake in Southern during the fourth quarter valued at about $33,000. Finally, Kingdom Financial Group LLC. purchased a new stake in Southern during the fourth quarter valued at about $33,000. 64.10% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Southern

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

Southern Stock Down 0.5%

SO stock opened at $92.06 on Friday. The company has a current ratio of 0.65, a quick ratio of 0.45 and a debt-to-equity ratio of 1.68. The company's 50 day moving average is $94.61 and its 200 day moving average is $91.84. The stock has a market cap of $103.78 billion, a price-to-earnings ratio of 23.43, a price-to-earnings-growth ratio of 2.80 and a beta of 0.36. Southern Company has a 1-year low of $83.80 and a 1-year high of $100.83.

Southern (NYSE:SO - Get Free Report) last posted its quarterly earnings data 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. The company had revenue of $8.40 billion for the quarter, compared to analysts' expectations of $8.07 billion. Southern had a net margin of 14.46% and a return on equity of 12.64%. Southern's revenue for the quarter was up 8.0% compared to the same quarter last year. During the same period in the prior year, the business earned $1.23 earnings per share. Sell-side analysts predict that Southern Company will post 4.57 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 given 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 currently 77.35%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on SO. Evercore upgraded Southern from an "in-line" rating to an "outperform" rating and set a $111.00 price target on the stock in a research report on Thursday, March 5th. Citigroup reiterated a "buy" rating on shares of Southern in a research report on Friday, April 10th. Raymond James Financial reiterated an "outperform" rating and set a $104.00 price target on shares of Southern in a research report on Friday, May 1st. Wells Fargo & Company set a $96.00 price target on Southern and gave the company an "equal weight" rating in a research report on Friday, February 20th. Finally, Weiss Ratings upgraded Southern from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 1st. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $99.38.

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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