Southern (NYSE:SO) Stock Rating Cut to Sell at Wall Street Zen

Wall Street Zen lowered shares of Southern (NYSE:SO) from a hold rating to a sell rating in a research report sent to investors on Saturday morning,Wall Street Zen reports.

Several other equities research analysts also recently weighed in on SO. Citigroup decreased their target price on Southern from $114.00 to $104.00 and set a “buy” rating for the company in a research report on Friday, September 25th. LADENBURG THALM/SH SH dropped their target price on Southern from $96.50 to $85.50 and set a “neutral” rating on the stock in a report on Monday, September 28th. Truist Financial dropped their target price on Southern from $97.00 to $93.00 and set a “hold” rating on the stock in a report on Thursday, October 15th. BMO Capital Markets reissued an “outperform” rating on shares of Southern in a research report on Wednesday, October 21st. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Southern in a report on Tuesday, October 27th. Eight analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $97.24.

Southern Stock Performance

NYSE:SO opened at $92.16 on Friday. The firm’s fifty day simple moving average is $88.16 and its 200 day simple moving average is $92.48. The company has a current ratio of 0.84, a quick ratio of 0.59 and a debt-to-equity ratio of 1.55. Southern has a twelve month low of $81.69 and a twelve month high of $99.58. The firm has a market capitalization of $106.02 billion, a price-to-earnings ratio of 20.99, a PEG ratio of 2.43 and a beta of 0.30.

Southern (NYSE:SO) last announced its quarterly earnings results on Thursday, November 5th. The utilities provider reported $1.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.71 by $0.23. Southern had a return on equity of 13.57% and a net margin of 16.00%. The firm had revenue of $8.84 billion during the quarter, compared to the consensus estimate of $8.38 billion. During the same period in the prior year, the firm earned $1.54 EPS. The firm’s quarterly revenue was up 13.0% compared to the same quarter last year. As a group, equities research analysts expect that Southern will post 4.70 earnings per share for the current fiscal year.

Southern Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 7th. Shareholders of record on Monday, November 16th will be issued a $0.76 dividend. The ex-dividend date is Monday, November 16th. This represents a $3.04 dividend on an annualized basis and a yield of 3.3%. Southern’s payout ratio is currently 69.25%.

Hedge Funds Weigh In On Southern

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SO. Vista Capital Partners Inc. acquired a new position in shares of Southern in the third quarter worth about $572,000. Patrick Mauro Investment Advisor INC. boosted its holdings in Southern by 6.2% in the third quarter. Patrick Mauro Investment Advisor INC. now owns 23,044 shares of the utilities provider’s stock valued at $1,910,000 after purchasing an additional 1,338 shares during the last quarter. Carson Advisory Inc. boosted its holdings in Southern by 1.2% in the third quarter. Carson Advisory Inc. now owns 71,250 shares of the utilities provider’s stock valued at $5,906,000 after purchasing an additional 861 shares during the last quarter. Moors & Cabot Inc. grew its stake in Southern by 1.3% during the 3rd quarter. Moors & Cabot Inc. now owns 61,923 shares of the utilities provider’s stock valued at $5,133,000 after purchasing an additional 821 shares in the last quarter. Finally, Money Concepts Capital Corp grew its stake in Southern by 6.8% during the 3rd quarter. Money Concepts Capital Corp now owns 70,325 shares of the utilities provider’s stock valued at $5,829,000 after purchasing an additional 4,462 shares in the last quarter. 64.10% of the stock is owned by hedge funds and other institutional investors.

Southern News Roundup

Here are the key news stories impacting Southern this week:

• Positive Sentiment: Third-quarter adjusted EPS of $1.94 beat the $1.71 consensus estimate, while revenue rose 13% year over year to $8.84 billion, also ahead of expectations. The company’s earnings release reported $1.77 per share on its stated basis, compared with $1.55 a year earlier. Article: Southern Co. Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management highlighted surging data-center demand and 21 GW of large-load contracts. Its 2026 EPS guidance of $4.70 is above the $4.59 consensus, and 2028 guidance of $5.25–$5.45 spans from consensus to above it—supporting the longer-term growth outlook. Article: Southern Q3 Earnings Call Highlights Growth and Capital Upside
• Neutral Sentiment: A potential $100 billion capital plan could enable investment to serve rising electricity demand, but its eventual scale and funding needs remain considerations for investors. Article: Southern Q3 Earnings Call Highlights Growth and Capital Upside
• Negative Sentiment: Fourth-quarter 2026 EPS guidance of $0.30 is below analysts’ $0.44 estimate. That near-term shortfall may temper the positive reaction to the quarterly beat and full-year guidance. Article: Southern Company Q3 Earnings Report

Southern Company Profile

Southern Company is an energy holding company based in Atlanta, Georgia. Through its subsidiaries, it generates, transmits and distributes electricity and provides natural gas service, primarily across the southeastern United States.

Its electric utility businesses include Alabama Power, Georgia Power and Mississippi Power, which serve customers in their respective states. Southern Company also owns Southern Power, which develops and operates wholesale power generation assets, and Southern Company Gas, whose businesses distribute natural gas to customers in several states.

Formed in 1945, Southern Company has grown from a regional electric utility holding company into a diversified energy provider.