Are The Southern Company (SO) stocks a prudent buy?

Currently, The Southern Company [SO] is trading at $74.99, down -1.25%. One of the good ways to gauge the recent performance is if the stock’s short-term value is rising or falling. The SO shares have lost -2.93% over the last week, with a monthly amount drifted -4.92%, and not seem to be holding up well over a long-time horizon.

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On 19, September 2022, Southern Company Named One of Forbes Best Employers for Women 2022. In a post published today on Yahoo Finance, Northampton, MA –News Direct– Southern Company.

From an analyst’s perspective:

The Southern Company [NYSE: SO] stock has seen the most recent analyst activity on August 04, 2022, when UBS upgraded its rating to a Buy and also boosted its price target to $87 from $76. Previously, Credit Suisse started tracking the stock with Underperform rating on April 26, 2022, and set its price target to $77. On April 07, 2022, downgrade downgraded it’s rating to Sector Weight. Wells Fargo downgraded its rating to a Equal Weight and decreased its price target to $72 on February 07, 2022. BofA Securities downgraded its rating to a Neutral and reduced its price target to $71 on February 07, 2022. Evercore ISI upgraded its rating to In-line for this stock on January 25, 2022, but kept the price target unchanged to $66. In a note dated December 15, 2021, Scotiabank downgraded an Sector Perform rating on this stock.

This stock has fluctuated between a low of $60.99 and a high of $80.57 over the last 52 weeks. Currently, Wall Street analysts expect the stock to reach $76.00 within the next 12 months. The Southern Company [NYSE: SO] shares were valued at $74.99 at the most recent close of the market. An investor can expect a potential return of 1.35% based on the average price forecast.

Analyzing the SO fundamentals

Recent quarter sales for The Southern Company [NYSE:SO] were 7.22 billion which represents 38.60% growth. Gross Margin for this corporation currently stands at +28.24% with Operating Margin at +22.69%, Pretax Margin comes in at +11.09%, and Net Margin reading is +10.37%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 74.31 points at the first support level, and at 73.64 for the second support level. However, for the 1st resistance point, the stock is sitting at 75.59, and for the 2nd resistance point, it is at 76.20.

The Southern Company [SO] reported earnings per share of $1.07 for its fiscal quarter that ended on 6/29/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.84/share, meaning a difference of $0.23 and a surprise factor of 27.40%. By comparison, the stated earnings for the previous quarter ended on 3/30/2022 were $0.97 per share as compared to estimates of $0.9 per share, a difference of $0.07 representing a surprise of 7.80%.

Ratios To Look Out For

To put it in perspective, the Current Ratio for The Southern Company [NYSE:SO] is 0.90. Also, the Quick Ratio is 0.61, while the Cash Ratio stands at 0.16. Considering the valuation of this stock, the price to sales ratio is 3.15, the price to book ratio is 2.70 and the P/E (TTM) ratio is 26.53.

Transactions by insiders

We now turn our attention to insider trading, which in the past 3 months has resulted in 3 insider buyings of 54,000 shares and 4 insider sellings of 154,000 shares. Recent insider trading involved Kuczynski Stephen E, Pres. & CEO, Southern Nuclear, that happened on Sep 08 when 14500.0 shares were sold. Pres. & CEO, Southern Nuclear, Kuczynski Stephen E completed a deal on Aug 10 to sell 14500.0 shares. Meanwhile, EVP, Chief Legal Officer & CCO Kerr, II James Y sold 25000.0 shares on Jul 29.