Analysts Set Target Price of $99.03 for Southern Company Shares

Shares of Southern Company (NYSE:SO) have received a consensus rating of “Hold” from twenty research firms currently covering the firm, according to Marketbeat.com. Of these analysts, two have recommended selling the stock, thirteen advised holding, four suggested buying, and one issued a strong buy recommendation. The average target price assigned by analysts over the past year is approximately $99.03.

Several equities research analysts have recently provided insights on the stock. On October 8, Weiss Ratings reaffirmed a “buy (b)” rating for Southern. Additionally, on August 21, JPMorgan Chase & Co. increased its target price on Southern from $97.00 to $98.00, maintaining a “neutral” rating. In a report dated November 25, Jefferies Financial Group also reaffirmed a “hold” rating. On October 27, Wells Fargo & Company initiated coverage with an “equal weight” rating and a price target of $97.00. Conversely, Barclays reduced its price target from $98.00 to $91.00 while issuing an “equal weight” rating in a note on November 20.

As of Friday, shares of Southern Company opened at $86.25, marking a decrease of 1.2%. The company’s current moving averages stand at $93.15 for the 50-day and $92.48 for the 200-day. Southern Company has a debt-to-equity ratio of 1.69, a current ratio of 0.75, and a quick ratio of 0.59. The stock has fluctuated between a one-year low of $80.46 and a high of $100.83. The company currently boasts a market capitalization of $94.97 billion, a price-to-earnings (P/E) ratio of 21.35, and a P/E growth (P/E/G) ratio of 2.78.

Southern Company recently announced its quarterly earnings results on October 29. The utility provider reported earnings per share of $1.60, exceeding analysts’ consensus estimates of $1.51 by $0.09. The company recorded revenue of $7.82 billion for the quarter, slightly below analyst expectations of $8.04 billion. Southern’s return on equity was 12.52%, with a net margin of 15.42%. Notably, revenue increased by 7.5% year-over-year compared to the same quarter last year when the firm earned $1.39 per share. Analysts predict that Southern will report earnings per share of $4.29 for the current fiscal year.

In addition, Southern Company declared a quarterly dividend to be paid on December 8, 2023. Shareholders of record as of November 17 will receive a dividend of $0.74 per share, translating to an annualized dividend of $2.96 and a yield of 3.4%. The ex-dividend date for this distribution is also set for November 17. Currently, Southern’s dividend payout ratio (DPR) stands at 73.27%.

Southern Company, through its subsidiaries, is involved in the generation, transmission, and distribution of electricity. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects. Additionally, it sells electricity in the wholesale market and distributes natural gas in regions including Illinois, Georgia, Virginia, and Tennessee, while providing gas marketing services and operating gas pipeline investments.