What Insider Buying Is Signaling In The Southern Company (SO)?

Thanks to a 5 sell/buy ratio, The Southern Company (NYSE:SO) insider selling over the last three months picked up more than buying did. When insiders sell more shares of their company stock, it’s generally for one reason only: With inside knowledge of their company’s prospects, they expect the stock price to decline soon. SO recorded 5 sales on the open market in the last three months. They sold nearly 83,673 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 301,120 shares when buyers snapped up 412,126 shares. The 12-month’s totals signify about a 0.73-to-1 sell/buy ratio.

Lantrip Mark parted with a total of 9 thousand shares of The Southern Company (SO) at average share price of $47.58. This insider trade in the company took place on 12/04/2018. The total for the sales was set at $428.22 thousand. After this transaction, the Chair, President & CEO, SCS account balance stood at 15.31 thousand shares. The stock lost -2.04 percent since that insider sale. On 12/04/2018, Wilson Anthony L, Pres & CEO, Mississippi Power, sold 35.06 thousand shares at a price per share of $47.24. This removed 1.66 million shares from the insider’s fortune and the stock saw a -1.33 percent retreat in value since the news became public. This transaction left 26.46 thousand shares in the Pres & CEO, Mississippi Power account.

On 12/03/2018, Chair & CEO, Southern Co. Gas Greene Kimberly S, performed a sale transaction worth $705.45 thousand. This sale at $47.03 each has eliminated 15 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -0.89 percent decrease since the transaction was reported. The insider now is left with 30.89 thousand shares remaining in the account. Womack Christopher C, who performs the EVP & Pres. External Affairs job, sold 16.37 thousand shares for $775.99 thousand. The disposal occurred on 08/16/2018 was priced at $47.4 per share. The share price plunged -1.67 percent since the reporting date. Womack Christopher C now left with a stake of 12.09 thousand SO stock worth $563.33 thousand after the insider selling.

The 12-month median price target for The Southern Company (SO) assigned by the analysts stands at $46, which represents a return potential of -1.31 percent when compared to the closing price of the stock of $46.61 on Friday, January 11. The lowest price target for the stock is $44 — slightly more than -5.6 percent from SO’s current share price. The stock will probably climb 0 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $52-month high price target. This represents a whopping 11.56 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 58.95 on daily chart, which may remain a cause for concern. If the price breaks below $45.44 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $46.99 mark may result into a pull-back move towards $47.37 level. The stock is currently hovering around the first support level of $46.03. Below this, the next support is placed in the zone of $45.44. Till the time, the SO stock trades above this level, bulls have nothing to fear.

Shares of The Southern Company (SO) are trading at a P/E ratio of 21.69 times earnings reported for the past 12 months. The industry SO operates in has an average P/E of 16.94. Its P/E ratio went as low as 18.07X and as high as 83.87 over the 5-year span. Further, it is sporting a 2 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.09. 85.5 percent is the gross profit margin for The Southern Company and operating margin sits at 18.5 percent. Along with this, the net profit margin is 10.3 percent.

On 11th of January, The Southern Company (NYSE:SO) shares ended higher after a volatile session. The shares accumulated 0.27 points or 0.58 percent at $46.61 with a light trade volume of 6.137 million shares. After opening the session at $46.22, the shares went as high as $46.785 and as low as $45.82, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $47.7 billion and now has 1.02 billion shares outstanding. The Southern Company (SO) stock has lost -2 percent of market value in 21 trading days.

SO stock has a trailing 3-year beta of 0.1, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.13 a share in the trailing twelve months. The stock’s value has surged 6.12 percent year to date (YTD) against a rise of 1.41 percent in 12 month’s time. The company’s shares still trade -5.71 percent away from its 1-year high of $49.43 and 9.98 percent up from 52-week low of $42.38. The average consensus rating on the company is 3.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.