Daiwa Securities Boosts Stake in Southern Company to $15.31 Million

Daiwa Securities Group Inc. has increased its holdings in Southern Company (NYSE: SO) by 6.0% during the second quarter, now owning a total of 166,660 shares valued at approximately $15.31 million, according to its latest filing with the Securities and Exchange Commission (SEC). The firm acquired an additional 9,397 shares during this period, reflecting its confidence in the utilities provider’s performance.

Several other institutional investors have also adjusted their positions in Southern Company. Townsquare Capital LLC raised its stake by 4.0% in the first quarter, owning 31,359 shares worth about $2.88 million after purchasing an additional 1,193 shares. Similarly, Covestor Ltd increased its position by 24.7%, now holding 747 shares valued at $68,000 following the acquisition of 148 shares.

Cooper Financial Group has also expanded its investment, raising its stake by 9.3% to a total of 3,976 shares worth $366,000. Public Sector Pension Investment Board increased its holdings by 3.1%, now owning 292,943 shares valued at $26.94 million, after acquiring an additional 8,682 shares. Taylor Hoffman Capital Management LLC entered the fray with a new position in Southern valued at $208,000. Collectively, institutional investors now own 64.10% of the company’s stock.

Southern Company’s Current Market Position

As of the latest trading session, shares of Southern Company opened at $85.48. The stock has a market capitalization of approximately $94.13 billion, with a price-to-earnings (P/E) ratio of 21.16 and a P/E/G ratio of 2.76. The company’s current ratio stands at 0.75, with a quick ratio of 0.59 and a debt-to-equity ratio of 1.69. Over the past year, the stock has seen a low of $80.46 and a high of $100.83.

Southern Company recently announced a quarterly dividend of $0.74, which was distributed on December 8, 2023, to shareholders of record as of November 17, 2023. This results in an annualized dividend of $2.96 and a yield of 3.5%, with a payout ratio currently at 73.27%.

Analysts’ Perspectives and Market Forecast

Recent reports from analysts provide varied outlooks on Southern Company’s stock. Barclays reduced its price target from $98.00 to $91.00, maintaining an “equal weight” rating. In contrast, LADENBURG THALM/SH SH reaffirmed a “neutral” rating with an updated target price of $102.50, up from $99.50. JPMorgan Chase & Co. raised its target from $97.00 to $98.00, while UBS Group increased its price objective from $100.00 to $104.00, also assigning a “neutral” rating.

TD Cowen initiated coverage with a “buy” rating and a target price of $112.00. Currently, the stock has one Strong Buy rating, four Buy ratings, thirteen Hold ratings, and two Sell ratings. According to MarketBeat, Southern Company has a consensus rating of “Hold” and an average price target of $99.03.

Southern Company, through its subsidiaries, is involved in the generation, transmission, and distribution of electricity. The company also develops, acquires, and manages power generation assets, including renewable energy projects, and offers natural gas distribution services in several states, including Illinois, Georgia, Virginia, and Tennessee.