Rakuten Investment Management Inc. Takes Position in Southern Company (The) $SO

Rakuten Investment Management Inc. bought a new stake in Southern Company (The) (NYSE:SO) in the 2nd quarter, according to its most recent filing with the SEC. The fund bought 184,383 shares of the utilities provider’s stock, valued at approximately $17,839,000.

Other hedge funds have also recently added to or reduced their stakes in the company. RB Capital Management LLC acquired a new stake in Southern during the second quarter valued at $459,000. Glenview Trust Co acquired a new position in shares of Southern in the second quarter worth about $3,325,000. North Star Asset Management Inc. acquired a new position in shares of Southern in the second quarter worth about $270,000. Empowered Funds LLC purchased a new stake in shares of Southern during the 2nd quarter worth about $6,772,000. Finally, United Capital Financial Advisors LLC purchased a new stake in shares of Southern during the 2nd quarter worth about $7,810,000. 64.10% of the stock is owned by hedge funds and other institutional investors.

Southern Stock Down 1.0%

SO stock opened at $88.18 on Friday. Southern Company has a 52 week low of $83.80 and a 52 week high of $100.83. 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 firm has a 50-day simple moving average of $94.12 and a 200-day simple moving average of $94.38. The stock has a market capitalization of $101.44 billion, a P/E ratio of 21.15, a P/E/G ratio of 1.71 and a beta of 0.34.

Southern (NYSE:SO) last issued its quarterly earnings results on Wednesday, July 29th. The utilities provider reported $1.13 earnings per share for the quarter, beating 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 firm had revenue of $6.98 billion for the quarter, compared to analyst estimates of $7.23 billion. During the same period last year, the company posted $0.79 EPS. Southern’s quarterly revenue was up .1% compared to the same quarter last year. Equities analysts forecast that Southern Company will post 4.59 earnings per share for the current fiscal year.

Southern Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 17th will be given a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 3.4%. The ex-dividend date is Monday, August 17th. Southern’s dividend payout ratio (DPR) is 72.90%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. Barclays cut their price target on Southern from $99.00 to $98.00 and set an “equal weight” rating for the company in a research note on Thursday, June 18th. Morgan Stanley dropped their price objective on Southern from $92.00 to $89.00 and set an “underweight” rating on the stock in a report on Friday, August 21st. JPMorgan Chase & Co. boosted their price objective on Southern from $101.00 to $104.00 and gave the company a “neutral” rating in a research report on Thursday, July 16th. Truist Financial reduced their target price on Southern from $100.00 to $97.00 and set a “hold” rating for the company in a research note on Thursday, August 13th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Southern in a research note on Wednesday, July 29th. Seven analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $100.09.

About Southern

Southern Company (NYSE: SO) is an Atlanta-based energy holding company that provides electric and gas utility services and owns power generation assets across the United States. Founded in 1945, the company operates a portfolio of regulated electric utilities and affiliated businesses that generate, transmit and distribute electricity to residential, commercial and industrial customers.

Southern’s principal regulated electric subsidiaries include Georgia Power, Alabama Power and Mississippi Power, which serve large portions of the southeastern United States.