Fintel reports that on August 10, 2023, Morgan Stanley upgraded their outlook for Southern (NYSE:SO) from Underweight to Equal-Weight .
Analyst Price Forecast Suggests 8.46% Upside
As of August 1, 2023, the average one-year price target for Southern is 75.04. The forecasts range from a low of 60.60 to a high of $84.00. The average price target represents an increase of 8.46% from its latest reported closing price of 69.19.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Southern is 26,553MM, a decrease of 3.98%. The projected annual non-GAAP EPS is 3.88.
Southern Declares $0.70 Dividend
On July 17, 2023 the company declared a regular quarterly dividend of $0.70 per share ($2.80 annualized). Shareholders of record as of August 21, 2023 will receive the payment on September 6, 2023. Previously, the company paid $0.70 per share.
At the current share price of $69.19 / share, the stock's dividend yield is 4.05%.
Looking back five years and taking a sample every week, the average dividend yield has been 4.27%, the lowest has been 3.39%, and the highest has been 5.74%. The standard deviation of yields is 0.50 (n=236).
The current dividend yield is 0.44 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.99. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.09%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2493 funds or institutions reporting positions in Southern. This is a decrease of 107 owner(s) or 4.12% in the last quarter. Average portfolio weight of all funds dedicated to SO is 0.41%, an increase of 11.09%. Total shares owned by institutions increased in the last three months by 1.32% to 791,439K shares. 
The put/call ratio of SO is 0.43, indicating a bullish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 61,473K shares representing 5.64% ownership of the company. In it's prior filing, the firm reported owning 60,189K shares, representing an increase of 2.09%. The firm decreased its portfolio allocation in SO by 7.39% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 33,717K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 33,098K shares, representing an increase of 1.84%. The firm decreased its portfolio allocation in SO by 8.35% over the last quarter.
Massachusetts Financial Services holds 27,016K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 27,377K shares, representing a decrease of 1.33%. The firm decreased its portfolio allocation in SO by 85.29% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 25,403K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 25,167K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in SO by 8.79% over the last quarter.
Geode Capital Management holds 19,364K shares representing 1.78% ownership of the company. In it's prior filing, the firm reported owning 19,514K shares, representing a decrease of 0.78%. The firm decreased its portfolio allocation in SO by 10.79% over the last quarter.
Southern Background Information
(This description is provided by the company.)
Southern Company brings energy to homes and businesses across the country. The company mades its name as a leading producer of clean, safe, reliable and affordable energy, and it approaches each day as a vital step in building the future of energy. It's always looking ahead, and innovations in the industry—from new nuclear to deployment of electric transportation and renewables —helps brighten the lives and businesses of millions of customers nationwide.
Additional reading:
- Senior Note Indenture dated as of June 1, 2023, between Mississippi Power and Regions Bank, as Trustee.
- First Supplemental Indenture to Senior Note Indenture dated as of June 28, 2023, providing for the issuance of the Series 2023A 5.64% Senior Notes due July 15, 2026
- Second Supplemental Indenture to Senior Note Indenture dated as of June 28, 2023, providing for the issuance of the Series 2023B 5.63% Senior Notes due July 15, 2033
- Power of Attorney of Christopher C. Womack
- Southern Company reports second-quarter 2023 earnings
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
