Southern stock: buy or sell?

SO stock price: $61.09 0.05% At close on September 20th, 2019

Updated on:
September 20th, 2019

5

Southern shares touched new all time highs back again today, marking to $61.27. Shares closed at $61.09 and stayed stable 0.05%. Counting Friday, it's been 4 green days in a row, soaring $1.23 or 2.05%.

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity.

Should I buy Southern stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

These 2 buy setups match with Southern stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Southern stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we detected 9 ratings published for SO stock in the last month.

The general sentiment of these ratings is bearish for SO stock, with 3 negative ratings.
Is SO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-6UBS Groupn/aNeutral
2019-8-16Morgan Stanleyn/aUnderweight
2019-8-1Bank of American/aNeutral
2019-6-19Barclaysn/aHold
2019-6-13MizuhoPositiveNeutral
2019-4-22Credit Suisse Groupn/aSell
2019-2-25SunTrust Banksn/aHold
2019-2-22Evercore ISIn/aUnderperform
2019-1-24CitigroupSellNeutral

Southern stock analysis

Daily outlook

After marking all time highs today, Southern stayed steady 0.05% to $61.09.

Southern stayed stable 0.05% today to $61.09 after reaching all time highs today. SO shows a strong short term uptrend with several rising tops and rising bottoms. Since its last bottom on September 10th, SO climbed unceasignly breaking out to new all time highs.

SO stock chart (daily)

Weekly outlook

Southern inched 1.60% this week and peaked a new all time high at $61.27. For 5 weeks in a row, price soared and marked a profit of 6.26%.

Since price and SMA40w lines crossed up late December 2018, SO climbed $18.64 (43.91%). Since early December 2018 when SMA10w and SMA20w crossed up, SO price gained $15.37 per share (33.62%).

SO stock chart (weekly)

Southern stock price history

Southern IPO was on December 31st, 1981 at $0.05 per share1. Since then, SO stock grew a 122,080.00%, with a yearly average of 3,299.50%. If you had invested right after SO's IPO a $1,000 in Southern stock in 1981, it would worth $1,220,800.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Southern stock historical price chart

SO stock reached all-time highs today with a price of $61.27.

Southern stock price target is $55.40

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 8 price predictions for Southern stock:
SO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-6UBS GroupRaises Target$58.00$62.006.9%
2019-8-16Morgan StanleyLowers Target$55.00$54.00-1.8%
2019-8-1Bank of AmericaLowers Target$61.00$60.00-1.6%
2019-6-19BarclaysReiteratesn/a$57.00-
2019-6-13MizuhoRaises Target$48.50$55.0013.4%
2019-4-22Credit Suisse GroupSet Price Targetn/a$51.00-
2019-2-25SunTrust BanksReiteratesn/a$52.00-
2019-2-22Evercore ISIUpgrades$45.00$52.0015.6%
(in average)$53.50$55.404.0%
Moving in a range from $62.00 and $51.00, the price target for Southern stock is $55.40. In average, analysts' outlook on SO price forecast is positive, upgrading the target by a 4.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Southern presented tiny results for 2018-Q4 on February. Southern inched Earnings per Share (EPS) by 4.20%, beating analysts estimates of $0.24. Southern posted $0.25.
SO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.58n/a
2017-Q32017-11-011.071.124.7%
2017-Q42018-02-210.460.5110.9%
2018-Q12018-05-020.840.884.8%
2018-Q22018-08-080.690.815.9%
2018-Q32018-11-071.071.146.5%
2018-Q42019-02-200.240.254.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Southern annual turnover gained a slightly good 2.01% to $23,495.00 M USD from $23,031.00 marked in 2017. In the same way, its earnings margin (compared to revenues) rose to 9.54%, that is $2,242.00 million.

SO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$17,090 M-$1,710 M10.0%-
2014$18,467 M8.06%$2,031 M11.0%18.77%
2015$17,489 M-5.30%$2,435 M13.9%19.89%
2016$19,896 M13.76%$2,493 M12.5%2.38%
2017$23,031 M15.76%$880 M3.8%-64.70%
2018$23,495 M2.01%$2,242 M9.5%154.77%

Quarterly financial results

Southern posted $5,337.00 million in sales for 2018-Q4, a -13.35% decline compared to previous quarter. Reported quarter earnings marked $282.00 million with a profit margin of 5.28%. Profit margin collapsed a -13.68% compared to previous quarter when profit margin was 18.96%. When comparing turnover to same quarter last year, Southern sales marked an awful slide and eased a -5.17%.
SO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$5,410 M-$-1,370 M-25.3%-
2017-Q3$6,201 M14.62%$1,079 M17.4%-178.76%
2017-Q4$5,628 M-9.24%$501 M8.9%-53.57%
2018-Q1$6,372 M13.22%$942 M14.8%88.02%
2018-Q2$5,627 M-11.69%$-150 M-2.7%-115.92%
2018-Q3$6,159 M9.45%$1,168 M19.0%-878.67%
2018-Q4$5,337 M-13.35%$282 M5.3%-75.86%
2019-Q1$5,412 M1.41%$2,088 M38.6%640.43%

Southern ownership

When you are planning to invest in a company, it's worth to have a look its ownership structure.

Southern shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.08% of all shares.

In case of Southern stock, 57.65% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for SO stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related stocks:

SOAEPDDUKEE
Market cap$64.1 B$46.0 B$65.0 B$68.8 B$2.7 B
Total shares1,050.0 M493.8 M803.4 M728.6 M40.8 M
Float shares1,040.0 M493.2 M800.7 M727.6 M40.4 M
  - Institutional holdings (%)57.6%75.8%60.2%61.7%96.3%
  - Insider holdings (%)0.1%0.0%0.3%0.1%1.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Southern summary

Friday, September 20th, 2019
Open$61.20
Close$61.09
Day range$60.64 - $61.27
Previous close$61.06
Session gain0.05%
Average true range$0.79
50d mov avg$57.49
100d mov avg$55.67
200d mov avg$51.69
Daily patternlb03c
Weekly pattern

Southern performance

To measure stock performance is always good to compare with competitors or related stocks. We chose American Electric Power, Dominion Energy, Duke Energy, El Paso Electric, Entergy, FirstEnergy, NextEra Energy, NRG Energy and PPL as the bechmarking frame for Southern stock.
Stock3m6m12m
SOSouthern9.76%20.42%45.56%
AEPAmerican Electric...2.55%11.17%34.90%
DDominion Energy4.49%9.71%19.72%
DUKDuke Energy6.66%6.42%23.52%
EEEl Paso Electric2.55%17.44%16.09%
ETREntergy11.33%21.91%44.88%
FEFirstEnergy11.11%17.26%35.33%
NEENextEra Energy8.97%17.36%35.02%
NRGNRG Energy10.42%-8.53%7.63%
PPL 0.73%0.67%12.08%

Southern competitors

One check before trading any stock is to have a look a list of its competitors, in this case for Southern. We chose 9 companies as Southern competitors as they are in the same industry or have similar market objectives.

Latest Southern stock news