Southern Company (SO) Stock: Assessing the Risk and Reward

The stock of Southern Company (SO) has gone down by -0.58% for the week, with a -8.20% drop in the past month and a -8.65% drop in the past quarter. The volatility ratio for the week is 1.04%, and the volatility levels for the past 30 days are 1.56% for SO. The simple moving average for the last 20 days is -1.65% for SO stock, with a simple moving average of 0.01% for the last 200 days.

Is It Worth Investing in Southern Company (NYSE: SO) Right Now?

Southern Company (NYSE: SO) has a price-to-earnings ratio of 19.19x that is above its average ratio. Additionally, the 36-month beta value for SO is 0.51. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 4 rating it as “overweight,” 11 rating it as “hold,” and 1 rating it as “sell.”

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The public float for SO is 1.09B and currently, short sellers hold a 1.66% ratio of that float. The average trading volume of SO on December 31, 2024 was 4.14M shares.

SO) stock’s latest price update

Southern Company (NYSE: SO) has seen a decline in its stock price by -0.91 in relation to its previous close of 83.14. However, the company has experienced a -0.58% decline in its stock price over the last five trading sessions. prnewswire.com reported 2024-12-30 that NEW YORK, Dec. 30, 2024 /PRNewswire/ — Baird Medical (NASDAQ: BDMD), a leading innovator in minimally invasive microwave ablation (MWA) technology, proudly supported and participated in the 2024 Guangdong Provincial Parathyroid Disease – Southern Yue Forum, held in Guangzhou, China. This distinguished forum, organized by prominent healthcare institutions in Guangdong, brought together esteemed medical experts, researchers, and healthcare professionals to share insights on advancements in the diagnosis and treatment of parathyroid diseases.

Analysts’ Opinion of SO

Many brokerage firms have already submitted their reports for SO stocks, with Jefferies repeating the rating for SO by listing it as a “Hold.” The predicted price for SO in the upcoming period, according to Jefferies is $94 based on the research report published on September 20, 2024 of the current year 2024.

Mizuho, on the other hand, stated in their research note that they expect to see SO reach a price target of $90. The rating they have provided for SO stocks is “Neutral” according to the report published on September 16th, 2024.

SO Trading at -5.51% from the 50-Day Moving Average

After a stumble in the market that brought SO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.78% of loss for the given period.

Volatility was left at 1.56%, however, over the last 30 days, the volatility rate increased by 1.04%, as shares sank -7.57% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -11.13% lower at present.

During the last 5 trading sessions, SO fell by -0.58%, which changed the moving average for the period of 200-days by +18.74% in comparison to the 20-day moving average, which settled at $83.76. In addition, Southern Company saw 17.48% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at SO starting from DAVIS MARTIN BERNARD, who sale 1,170 shares at the price of $85.90 back on Dec 05 ’24. After this action, DAVIS MARTIN BERNARD now owns 88,393 shares of Southern Company, valued at $100,503 using the latest closing price.

WOMACK CHRISTOPHER C, the CEO, President and Chairman of Southern Company, sale 14,000 shares at $86.18 during a trade that took place back on Dec 05 ’24, which means that WOMACK CHRISTOPHER C is holding 73,911 shares at $1,206,520 based on the most recent closing price.

Stock Fundamentals for SO

Current profitability levels for the company are sitting at:

  • 0.27 for the present operating margin
  • 0.41 for the gross margin

The net margin for Southern Company stands at 0.18. The total capital return value is set at 0.05. Equity return is now at value 14.60, with 3.35 for asset returns.

Based on Southern Company (SO), the company’s capital structure generated 0.66 points at debt to capital in total, while cash flow to debt ratio is standing at 0.15. The debt to equity ratio resting at 1.91. The interest coverage ratio of the stock is 2.67.

Currently, EBITDA for the company is 11.74 billion with net debt to EBITDA at 4.85. When we switch over and look at the enterprise to sales, we see a ratio of 5.84. The receivables turnover for the company is 5.98for trailing twelve months and the total asset turnover is 0.18. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.91.

Conclusion

In conclusion, Southern Company (SO) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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