Southern Company (SO) stock expected to decline by -15.79%: What’s driving the pessimism?

Southern Company [SO] stock prices are down -0.55% to $92.73 at the moment. In order to assess the stock’s recent performance, you can check whether its short-term value is rising or falling. The SO shares have gain 3.22% over the last week, with a monthly amount glided 3.38%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Southern Company [NYSE: SO] stock has seen the most recent analyst activity on September 20, 2024, when Jefferies initiated its Hold rating and assigned the stock a price target of $94. Previously, Mizuho downgraded its rating to Neutral on September 16, 2024, and kept the price target unchanged to $90. On August 02, 2024, downgrade downgraded it’s rating to Peer Perform. UBS downgraded its rating to a Neutral. BMO Capital Markets upgraded its rating to a Outperform and raised its price target to $77 on January 11, 2024. Citigroup started tracking with a Buy rating for this stock on December 08, 2023, and assigned it a price target of $82. In a note dated November 03, 2023, Scotiabank downgraded an Sector Perform rating on this stock but restated the target price of $78.

The stock price of Southern Company [SO] has been fluctuating between $64.53 and $93.35 over the past year. Currently, Wall Street analysts expect the stock to reach $78.09 within the next 12 months. Southern Company [NYSE: SO] shares were valued at $92.73 at the most recent close of the market. An investor can expect a potential drop of -15.79% based on the average SO price forecast.

Analyzing the SO fundamentals

The Southern Company [NYSE:SO] reported sales of 26.13B for trailing twelve months, representing a surge of 12.44%. Gross Profit Margin for this corporation currently stands at 0.41% with Operating Profit Margin at 0.26%, Pretax Profit Margin comes in at 0.2%, and Net Profit Margin reading is 0.18%. To continue investigating profitability, this company’s Return on Assets is posted at 0.03, Equity is 0.14 and Total Capital is 0.05. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of1.98.

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 92.32 points at the first support level, and at 91.90 for the second support level. However, for the 1st resistance point, the stock is sitting at 93.44, and for the 2nd resistance point, it is at 94.14.

Ratios To Look Out For

It’s worth pointing out that Southern Company [NYSE:SO]’s Current Ratio is 0.91. In addition, the Quick Ratio stands at 0.64 and the Cash Ratio stands at 0.1. Considering the valuation of this stock, the price to sales ratio is 3.88, the price to book ratio is 3.13 and price to earnings (TTM) ratio is 22.11.

Transactions by insiders

Recent insider trading involved Kerr, II James Y, Chairman, President & CEO, GAS, that happened on Oct 04 ’24 when 30000.0 shares were sold. Officer, Kerr, II James Y completed a deal on Oct 04 ’24 to buy 30000.0 shares. Meanwhile, EVP & Pres. External Affairs Anderson Bryan D sold 6565.0 shares on Sep 06 ’24.

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