Southern (NYSE:SO) Stock Crosses Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Southern shares fell below their 200-day moving average, trading as low as $91.28 versus the $92.29 average, which may signal near-term technical weakness.
• Analyst sentiment is mixed: Southern has an overall “Hold” consensus, with 8 Buy, 9 Hold and 2 Sell ratings, and an average price target of $98.24.
• The company reported quarterly EPS of $1.13, beating estimates, and declared a quarterly dividend of $0.76, equivalent to a 3.3% annualized yield.

Shares of Southern Company (The) (NYSE:SO - Get Free Report) crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $92.29 and traded as low as $91.28. Southern shares last traded at $91.4840, with a volume of 5,228,646 shares traded.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. HSBC assumed coverage on shares of Southern in a research report on Thursday, October 22nd. They set a "buy" rating and a $99.50 target price on the stock. JPMorgan Chase & Co. decreased their price target on shares of Southern from $101.00 to $94.00 and set a "neutral" rating for the company in a report on Tuesday, October 13th. Morgan Stanley decreased their price target on shares of Southern from $85.00 to $84.00 and set an "underweight" rating for the company in a report on Wednesday, October 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of Southern in a research note on Tuesday. Finally, Jefferies Financial Group dropped their price objective on shares of Southern from $96.00 to $95.00 and set a "hold" rating on the stock in a report on Tuesday, October 20th. Eight research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Southern currently has an average rating of "Hold" and a consensus target price of $98.24.

Southern Trading Down 1.3%

The company has a quick ratio of 0.59, a current ratio of 0.79 and a debt-to-equity ratio of 1.62. The company's 50-day moving average is $87.72 and its 200 day moving average is $92.29. The company has a market cap of $105.24 billion, a price-to-earnings ratio of 21.94, a price-to-earnings-growth ratio of 2.44 and a beta of 0.31.

Southern (NYSE:SO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The utilities provider reported $1.13 earnings per share for the quarter, topping analysts' consensus estimates of $1.01 by $0.12. Southern had a net margin of 15.43% and a return on equity of 12.93%. The business had revenue of $6.98 billion during the quarter, compared to the consensus estimate of $7.23 billion. During the same quarter in the prior year, the firm posted $0.79 earnings per share. The company's revenue was up .1% compared to the same quarter last year. Research analysts predict that Southern Company will post 4.59 EPS for the current year.

Southern Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Monday, November 16th will be paid a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Monday, November 16th. Southern's payout ratio is currently 72.90%.

Hedge Funds Weigh In On Southern

A number of large investors have recently bought and sold shares of the business. Summit Global Investments lifted its stake in shares of Southern by 65.6% in the 3rd quarter. Summit Global Investments now owns 6,863 shares of the utilities provider's stock valued at $569,000 after purchasing an additional 2,719 shares during the last quarter. MGO One Seven LLC grew its holdings in shares of Southern by 3.9% during the 3rd quarter. MGO One Seven LLC now owns 61,478 shares of the utilities provider's stock worth $5,096,000 after purchasing an additional 2,283 shares during the period. Greatmark Investment Partners Inc. grew its holdings in shares of Southern by 0.3% during the 3rd quarter. Greatmark Investment Partners Inc. now owns 52,018 shares of the utilities provider's stock worth $4,312,000 after purchasing an additional 146 shares during the period. Americana Partners LLC increased its position in shares of Southern by 11.6% during the 3rd quarter. Americana Partners LLC now owns 23,926 shares of the utilities provider's stock worth $1,983,000 after purchasing an additional 2,485 shares during the last quarter. Finally, Modera Wealth Management LLC increased its position in shares of Southern by 21.2% during the 3rd quarter. Modera Wealth Management LLC now owns 13,773 shares of the utilities provider's stock worth $1,142,000 after purchasing an additional 2,413 shares during the last quarter. Institutional investors and hedge funds own 64.10% of the company's stock.

About Southern

Southern Company NYSE: SO is an energy holding company headquartered in Atlanta, Georgia. Through its subsidiaries, the company generates, transmits, distributes and sells electricity, while also providing natural gas distribution and related energy services.

Southern's electric utility operations include Alabama Power, Georgia Power and Mississippi Power, which serve customers across Alabama, Georgia and Mississippi. The company's generation portfolio includes nuclear, natural gas, coal, hydroelectric and renewable energy resources.

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