Southern (NYSE:SO) Downgraded by Wall Street Zen to "Sell"

Key Points

• Southern's stock was downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting a shift in analysts' outlook.
• The company's recent earnings report showed missed EPS estimates at $0.91 compared to $0.99 expected, despite revenue beating estimates at $6.97 billion.
• Currently, Southern has an average analyst rating of "hold" and a consensus target price of $94.27, with mixed ratings from various research firms.

Southern (NYSE:SO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

SO has been the subject of a number of other research reports. Morgan Stanley cut their price objective on shares of Southern from $91.00 to $90.00 and set an "equal weight" rating for the company in a research report on Wednesday, June 18th. Wells Fargo & Company upped their price target on Southern from $95.00 to $99.00 and gave the company an "equal weight" rating in a report on Friday, May 2nd. BMO Capital Markets raised their price objective on Southern from $98.00 to $102.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 22nd. Jefferies Financial Group raised Southern from a "hold" rating to a "buy" rating and decreased their price objective for the stock from $102.00 to $100.00 in a report on Thursday, June 5th. Finally, Mizuho upped their target price on Southern from $93.00 to $95.00 and gave the company a "neutral" rating in a research note on Friday. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, Southern currently has an average rating of "Hold" and a consensus target price of $94.27.

Southern Stock Up 0.5%

Shares of SO stock opened at $94.96 on Friday. Southern has a 12 month low of $80.46 and a 12 month high of $96.44. The company has a quick ratio of 0.65, a current ratio of 0.74 and a debt-to-equity ratio of 1.69. The firm has a market cap of $104.37 billion, a PE ratio of 24.41, a price-to-earnings-growth ratio of 3.27 and a beta of 0.38. The stock has a 50 day moving average of $91.38 and a 200-day moving average of $89.41.

Southern (NYSE:SO - Get Free Report) last announced its earnings results 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). The company had revenue of $6.97 billion for the quarter, compared to the consensus estimate of $6.70 billion. Southern had a return on equity of 12.09% and a net margin of 15.10%. The company's revenue was up 7.9% compared to the same quarter last year. During the same period last year, the firm posted $1.10 EPS. On average, equities analysts predict that Southern will post 4.29 EPS for the current year.

Insider Buying and Selling at Southern

In related news, CEO Kimberly S. Greene sold 13,158 shares of the 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 $8,897,795. This trade represents a 12.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.16% of the company's stock.

Institutional Trading of Southern

Large investors have recently added to or reduced their stakes in the company. Bank of Jackson Hole Trust increased its holdings in shares of Southern by 15.0% during the second quarter. Bank of Jackson Hole Trust now owns 7,102 shares of the utilities provider's stock worth $652,000 after buying an additional 926 shares in the last quarter. Jennison Associates LLC grew its position in Southern by 18.7% during the 2nd quarter. Jennison Associates LLC now owns 2,565,858 shares of the utilities provider's stock worth $235,623,000 after acquiring an additional 403,929 shares during the last quarter. Ferguson Shapiro LLC acquired a new stake in Southern during the 2nd quarter valued at $395,000. Austin Private Wealth LLC raised its position in Southern by 6.6% in the 2nd quarter. Austin Private Wealth LLC now owns 6,241 shares of the utilities provider's stock valued at $573,000 after purchasing an additional 385 shares during the last quarter. Finally, New York Life Investment Management LLC boosted its stake in Southern by 2.2% in the second quarter. New York Life Investment Management LLC now owns 149,620 shares of the utilities provider's stock worth $13,740,000 after purchasing an additional 3,233 shares in the last quarter. 64.10% of the stock is owned by institutional investors.

Southern Company 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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