JPMorgan Chase & Co. Sells 69,146,349 Shares of Southern Company (The) $SO

Key Points

• JPMorgan Chase & Co. sharply reduced its Southern Company stake by 52.8% in the fourth quarter, selling 69.1 million shares and still holding about 5.61% of the utility valued at roughly $5.39 billion.
• Southern reported better-than-expected quarterly results, posting EPS of $1.32 versus estimates of $1.21 and revenue of $8.40 billion, up 8% year over year.
• The company also raised its dividend to $0.76 per quarter from $0.74, implying an annualized payout of $3.04 and a yield of about 3.3%.

JPMorgan Chase & Co. cut its stake in Southern Company (The) (NYSE:SO - Free Report) by 52.8% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 61,770,419 shares of the utilities provider's stock after selling 69,146,349 shares during the quarter. JPMorgan Chase & Co. owned approximately 5.61% of Southern worth $5,386,381,000 as of its most recent SEC filing.

A number of other hedge funds have also bought and sold shares of SO. Capital World Investors increased its position in Southern by 320.3% during the third quarter. Capital World Investors now owns 33,548,852 shares of the utilities provider's stock worth $3,179,425,000 after acquiring an additional 25,567,431 shares during the period. Norges Bank bought a new position in Southern during the fourth quarter worth about $1,111,450,000. Soroban Capital Partners LP increased its position in Southern by 83.8% during the second quarter. Soroban Capital Partners LP now owns 4,097,422 shares of the utilities provider's stock worth $376,266,000 after acquiring an additional 1,867,912 shares during the period. Vanguard Group Inc. increased its position in Southern by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 108,057,413 shares of the utilities provider's stock worth $9,422,606,000 after acquiring an additional 1,643,090 shares during the period. Finally, Canada Pension Plan Investment Board increased its position in Southern by 1,518.4% during the second quarter. Canada Pension Plan Investment Board now owns 1,044,101 shares of the utilities provider's stock worth $95,880,000 after acquiring an additional 979,587 shares during the period. 64.10% of the stock is owned by institutional investors.

Insider Activity

In other news, CEO Kimberly S. Greene sold 25,000 shares of the firm'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 sale, the chief executive officer directly owned 103,602 shares in the company, valued at approximately $10,015,205.34. This trade represents a 19.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Christopher Cummiskey sold 6,669 shares of the firm'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 transaction of $643,891.95. Following the completion of the sale, the executive vice president owned 30,800 shares in the company, valued at approximately $2,973,740. The trade was a 17.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.16% of the stock is owned by company insiders.

Southern Price Performance

SO stock opened at $92.74 on Monday. The company has a quick ratio of 0.45, a current ratio of 0.65 and a debt-to-equity ratio of 1.68. Southern Company has a 12 month low of $83.80 and a 12 month high of $100.83. The firm has a market cap of $104.54 billion, a P/E ratio of 23.60, a P/E/G ratio of 2.80 and a beta of 0.34. The company's 50-day moving average price is $94.26 and its two-hundred day moving average price is $91.84.

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

Southern Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 8th. Shareholders of record on Monday, May 18th will be issued a $0.76 dividend. The ex-dividend date of this dividend is Monday, May 18th. This represents a $3.04 annualized dividend and a yield of 3.3%. This is an increase from Southern's previous quarterly dividend of $0.74. Southern's payout ratio is 77.35%.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. TD Cowen raised their price target on shares of Southern from $108.00 to $112.00 and gave the stock a "buy" rating in a research report on Friday, March 6th. Seaport Research Partners lowered shares of Southern from a "buy" rating to a "neutral" rating in a research report on Monday, April 20th. Truist Financial lowered their price target on shares of Southern from $103.00 to $100.00 and set a "hold" rating on the stock in a research report on Friday, May 29th. BMO Capital Markets reaffirmed an "outperform" rating on shares of Southern in a research report on Friday, February 20th. Finally, Citigroup reaffirmed a "buy" rating on shares of Southern in a research report on Friday, April 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $99.38.

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.

Want to see what other hedge funds are holding SO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Southern Company (The) (NYSE:SO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.