Optas LLC Invests $241,000 in Southern Company (The) $SO

Key Points

• Optas LLC invested $241,000 in Southern Company by purchasing 2,623 shares during the 2nd quarter, according to its SEC filing.
• The Southern Company reported earnings of $0.91 EPS for the last quarter, falling short of analysts' expectations of $0.99, despite a revenue increase of 7.9% year-over-year.
• Southern Company announced a quarterly dividend of $0.74, yielding 3.1%, with a payout ratio of 76.09% currently.

Optas LLC purchased a new position in shares of Southern Company (The) (NYSE:SO - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 2,623 shares of the utilities provider's stock, valued at approximately $241,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of SO. Ameriflex Group Inc. lifted its holdings in Southern by 275.0% during the 2nd quarter. Ameriflex Group Inc. now owns 300 shares of the utilities provider's stock worth $27,000 after buying an additional 220 shares during the period. Cheviot Value Management LLC acquired a new position in Southern during the 1st quarter worth about $28,000. Financial Connections Group Inc. acquired a new position in Southern during the 1st quarter worth about $33,000. Accredited Wealth Management LLC acquired a new position in Southern during the 1st quarter worth about $36,000. Finally, Rossby Financial LCC acquired a new position in Southern during the 1st quarter worth about $39,000. 64.10% of the stock is owned by institutional investors and hedge funds.

Southern Stock Performance

Shares of Southern stock opened at $96.11 on Friday. Southern Company has a one year low of $80.46 and a one year high of $96.79. The firm has a market capitalization of $105.73 billion, a price-to-earnings ratio of 24.71, a PEG ratio of 3.33 and a beta of 0.43. The business has a 50-day simple moving average of $93.56 and a 200 day simple moving average of $91.64. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.74 and a quick ratio of 0.54.

Southern (NYSE:SO - Get Free Report) last issued its earnings results on Thursday, July 31st. The utilities provider reported $0.91 EPS for the quarter, missing analysts' consensus estimates of $0.99 by ($0.08). Southern had a net margin of 15.10% and a return on equity of 12.09%. The firm had revenue of $6.97 billion during the quarter, compared to the consensus estimate of $6.70 billion. During the same period in the previous year, the firm earned $1.10 earnings per share. The business's quarterly revenue was up 7.9% on a year-over-year basis. Southern has set its Q3 2025 guidance at 1.500-1.500 EPS. FY 2025 guidance at 4.200-4.300 EPS. On average, research analysts anticipate that Southern Company will post 4.29 earnings per share for the current fiscal year.

Southern Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Monday, August 18th were given a $0.74 dividend. This represents a $2.96 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend was Monday, August 18th. Southern's payout ratio is presently 76.09%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on SO. Scotiabank reaffirmed a "sector perform" rating and set a $99.00 target price on shares of Southern in a report on Friday, October 3rd. Evercore ISI began coverage on Southern in a research note on Monday. They issued an "in-line" rating and a $103.00 price objective on the stock. Wall Street Zen downgraded Southern from a "hold" rating to a "sell" rating in a research note on Saturday, August 2nd. Weiss Ratings reissued a "buy (b)" rating on shares of Southern in a research note on Wednesday. Finally, Raymond James Financial began coverage on Southern in a research note on Friday, June 13th. They issued an "outperform" rating and a $98.00 price objective on the stock. Four equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $95.77.

Insider Buying and Selling

In related news, CEO Kimberly S. Greene sold 13,158 shares of the business's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $95.00, for a total value of $1,250,010.00. Following the completion of the sale, the chief executive officer directly owned 93,661 shares of the company's stock, valued at $8,897,795. The trade was a 12.32% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.16% of the stock is owned by insiders.

Southern Profile

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, gas distribution operations, and gas pipeline investments operations.

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