Searle & Co. has reduced its stake in the Southern Company (NYSE: SO) by 12.1% during the second quarter of 2023, according to Holdings Channel. The firm now holds 7,250 shares of the utility provider after selling 1,000 shares during the quarter. As of the end of the most recent quarter, Searle’s investment in Southern Company was valued at approximately $666,000.
The reduction in Searle’s holdings aligns with broader market trends, as several institutional investors have made significant moves related to Southern Company shares. For instance, Vanguard Group Inc. increased its stake by 1.4% in the first quarter, now owning 104,210,177 shares valued at around $9.58 billion after acquiring an additional 1,419,724 shares. Similarly, Northern Trust Corp raised its position by 1.0%, bringing its total to 10,912,663 shares, valued at approximately $1 billion.
Charles Schwab Investment Management Inc. also increased its holdings by 1.2% in the same quarter, now owning 6,680,776 shares worth about $614 million. New investments include a position established by Nuveen LLC valued at around $510 million. Federated Hermes Inc. expanded its stake by 4.1%, acquiring an additional 120,816 shares for a total of 3,046,293 shares valued at approximately $280 million. Currently, institutional investors and hedge funds own 64.10% of Southern Company’s stock.
Analysts Weigh In on Southern Company
Equities analysts have recently shared their perspectives on Southern Company. On October 16, 2023, TD Cowen initiated coverage with a “buy” rating and a price target of $112.00. Barclays set a price objective of $70.00, while BMO Capital Markets raised its target from $98.00 to $102.00, affirming an “outperform” rating. In contrast, The Goldman Sachs Group downgraded the stock from “buy” to “neutral,” setting a price objective of $98.00.
The overall sentiment among analysts has resulted in varied ratings: one analyst suggested a Strong Buy, six rated it as Buy, twelve maintained a Hold rating, and one advised Sell. According to data from MarketBeat, the average rating for Southern Company stands at “Hold” with a consensus target price of $99.56.
Southern Company’s Recent Performance
On October 29, 2023, Southern Company posted its quarterly earnings, reporting an earnings per share (EPS) of $1.60, exceeding the consensus estimate of $1.51 by $0.09. The company achieved a net margin of 15.10% and a return on equity of 12.09%. Revenue for the quarter amounted to $7.82 billion, although it fell short of the expected $8.04 billion. Compared to the same quarter last year, revenue increased by 7.5%.
The company’s stock opened at $91.39 on Friday, with a market capitalization of $100.63 billion, a price-to-earnings (P/E) ratio of 23.49, and a beta of 0.45. Southern Company’s stock has a fifty-two week low of $80.46 and a high of $100.83. As of now, the company has a quick ratio of 0.54, a current ratio of 0.74, and a debt-to-equity ratio of 1.69.
In a further development, Southern Company announced a quarterly dividend of $0.74, which will be paid on December 8, 2023. Shareholders of record on November 17, 2023 will receive this dividend, representing an annualized total of $2.96 and a yield of 3.2%. Currently, the company’s dividend payout ratio is 73.27%.
Southern Company operates through its subsidiaries in the generation, transmission, and distribution of electricity. The firm is also involved in developing, constructing, and managing power generation assets, including renewable energy projects, while providing natural gas distribution services across several states, including Illinois, Georgia, Virginia, and Tennessee.
