SCP Investment LP Takes Position in Southern Company (The) (NYSE:SO)

Key Points

• SCP Investment LP has acquired a new stake in Southern Company (NYSE: SO), purchasing 9,800 shares for approximately $901,000, marking it as the company's 23rd largest position in its portfolio.
• Southern Company recently reported $0.91 EPS for the quarter, missing estimates of $0.99, while showing a year-over-year revenue increase of 7.9%.
• The company announced a quarterly dividend of $0.74 per share, set to be paid on September 8th, representing a 3.1% annual yield with a payout ratio of 76.09%.

SCP Investment LP acquired a new stake in Southern Company (The) (NYSE:SO - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 9,800 shares of the utilities provider's stock, valued at approximately $901,000. Southern comprises about 0.8% of SCP Investment LP's investment portfolio, making the stock its 23rd biggest position.

Other institutional investors also recently modified their holdings of the company. Investors Research Corp boosted its stake in Southern by 400.0% during the first quarter. Investors Research Corp now owns 270 shares of the utilities provider's stock worth $25,000 after acquiring an additional 216 shares in the last quarter. Rossby Financial LCC bought a new position in Southern during the first quarter worth $39,000. Elequin Capital LP boosted its stake in Southern by 60.6% during the fourth quarter. Elequin Capital LP now owns 498 shares of the utilities provider's stock worth $41,000 after acquiring an additional 188 shares in the last quarter. Copia Wealth Management bought a new position in Southern during the fourth quarter worth $45,000. Finally, Transce3nd LLC bought a new position in Southern during the fourth quarter worth $46,000. 64.10% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research analysts recently issued reports on SO shares. Evercore ISI increased their target price on shares of Southern from $90.00 to $94.00 and gave the stock an "in-line" rating in a research note on Friday, May 2nd. Wall Street Zen lowered shares of Southern from a "hold" rating to a "sell" rating in a research note on Saturday. Mizuho raised their price objective on shares of Southern from $93.00 to $95.00 and gave the company a "neutral" rating in a research note on Friday. Raymond James Financial initiated coverage on shares of Southern in a research note on Friday, June 13th. They issued an "outperform" rating and a $98.00 price objective on the stock. Finally, Barclays raised their price objective on shares of Southern from $90.00 to $91.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 16th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $94.29.

Southern Stock Performance

NYSE SO opened at $94.96 on Friday. Southern Company has a 52-week low of $80.46 and a 52-week high of $96.44. The company has a 50-day simple moving average of $91.38 and a 200 day simple moving average of $89.46. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.65 and a current ratio of 0.74. The company has a market capitalization of $104.37 billion, a PE ratio of 24.41, a price-to-earnings-growth ratio of 3.28 and a beta of 0.38.

Southern (NYSE:SO - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The utilities provider reported $0.91 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.99 by ($0.08). Southern had a return on equity of 12.09% and a net margin of 15.10%. The company had revenue of $6.97 billion for the quarter, compared to analysts' expectations of $6.70 billion. During the same quarter last year, the business posted $1.10 EPS. The business's quarterly revenue was up 7.9% on a year-over-year basis. On average, research analysts predict that Southern Company will post 4.29 EPS for the current year.

Southern Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 8th. Investors of record on Monday, August 18th will be issued a dividend of $0.74 per share. This represents a $2.96 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Monday, August 18th. Southern's dividend payout ratio (DPR) is 76.09%.

Insider Transactions at Southern

In related news, CEO Kimberly S. Greene sold 13,158 shares of the firm's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $95.00, for a total transaction of $1,250,010.00. Following the completion of the sale, the chief executive officer owned 93,661 shares in the company, valued at approximately $8,897,795. This trade represents a 12.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.16% of the company's stock.

About Southern

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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