The Southern Company (SO) Price Target: Is It Set To Rise Or Fall In Price?

The Southern Company (NYSE:SO) finished Thursday with a subtraction of -$0.06 to close at $62.67, a downside of -0.10 percent. An average of 4,288,160 shares of common stock have been traded in the last five days. There was a gain of $0.70 in the past week. The last 20 days have seen an average of 4,161,625 shares traded, while the 50-day average volume stands at 4,145,098.

SO stock has decreased by -6.89% in the last month. The company shares reached their 1-month lowest point of $61.46 on 10/06/21. With the stock rallying to its 52-week high on 09/09/21, shares of the company touched a low of $56.69 and a high of $67.54 in 52 weeks. In spite of this, the price is down -7.21% from the 52-week high.

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Insider Transactions

28 days have passed since The Southern Company (SO) last reported insider trading activity. Kuczynski Stephen E, who is Pres. & CEO, Southern Nuclear, most recently acquired $2,500 shares at $67.04 per share on Sep 10. In this transaction, the insider spent $167,600. Chairman, President & CEO, GAS, Greene Kimberly S, disposed of 33,884 shares at a price of $67.50 on Sep 09. The insider now owns more than $2,287,170 worth of shares. Prior to that, EVP & Pres. External Affairs Anderson Bryan D went on to Sale 22,510 shares at $66.87 each on Sep 07. An amount of $1,505,244 was transacted.

Valuation Metrics

The Southern Company (SO) has a trailing price-to-earnings (P/E) ratio of 21.24, which compares with the 17.20 for the broader industry and 23.35 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, The Southern Company’s PE ratio has ranged between 98.80 and 9.590. The stock’s beta is 0.47. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.05, the price-to-book (PB) ratio at 2.36.

The Southern Company pays a $2.64 dividend per share annually. It offers a dividend yield of 4.21%. The company has a payout ratio of 86.90%. The company’s most recent quarterly dividend payment took place on Sep. 7, and it was $0.66 a share, without any change from last year. Its dividend has been increased for the last 1 consecutive years with the latest increase dividend $0.02 reported on Tuesday April 20 2021. Dividends have grown by 10.43% each year over the last three years.

The Southern Company will next go ex-dividend on 15-Nov. The next dividend payment The Southern Company will make is expected to be $0.66.

The quick ratio of The Southern Company for the three months ended June 29 was 0.60, and the current ratio was 0.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.70 and a total debt to equity ratio of 1.85 For the recent quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 88.90% against a 5-year average of 44.1%. The Southern Company’s EBITDA margin for the year ending June 29 is 44.16%, while its operating margin for the same period stands at 22.00%. Its gross profit as reported stood at $4.88 billion compared to revenue of $20.38 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, The Southern Company’s return on assets was 2.50%, compared to 2.4% over the last five years. In the past year, the return on investment has been 5.60%, and the 5-year average is 5.6%. Meanwhile, the return on equity (ROE) for the past 12 months has been 11.10% and the 5-year average holds at 10.5%. For the broader industry, ROE averaged 9.87 over the past year.

Earnings Surprise

The analyst consensus anticipated The Southern Company’s latest quarter earnings to come in at $0.79 per share, but it turned out to be $0.84, a 6.30% surprise. For the recent quarter, EBITDA amounted to $1.69 billion. Shareholders own equity worth $1.06 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at The Southern Company (SO) price momentum. RSI 9-day as of the close on 07 October was 42.39%, suggesting the stock is Neutral, with historical volatility in this time frame at 15.32%.

As of today, SO’s price is $62.33 +1.13% or $0.70 from its 5-day moving average. SO is currently trading -6.71% lower than its 20-day SMA and -2.75% lower than its 100-day SMA. However, the stock’s current price level is -2.06% below the SMA50 and +4.45% above the SMA200.

The stochastic %K and %D were 27.21% and 19.97%, respectively, and the average true range (ATR) was 1.01. With the 14-day stochastic at 37.58% and the average true range at 0.98, the RSI (14) stands at 40.71%. The stock has reached 0.19 on the 9-day MACD Oscillator while the 14-day reading was at -0.27.

Analyst Ratings

Guggenheim upgraded The Southern Company (NYSE: SO) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a a Neutral.The consensus rating for The Southern Company (SO) among analysts is Overweight. According to current brokerage recommendations, 4 brokerage firms advise that investors sell SO, while 3 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 10 others rate it as a “buy”.

What is SO’s price target for the next 12 months?

Analysts predict a range of price targets between $52.00 and $76.00, with a median target of $68.50. Taking a look at these predictions, the average price target given by analysts for The Southern Company (SO) stock is $67.44.


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