The Southern Company [NYSE: SO] stock went on a downward path that fall over -2.04% on Tuesday, amounting to a one-week price decrease of less than -3.80%. The company report on February 23, 2023 that Southern Company announces pricing of $1.5 billion in aggregate principal amount of Series 2023A 3.875% Convertible Senior Notes due December 15, 2025.
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Southern Company (NYSE: SO) today announced the pricing of $1.5 billion in aggregate principal amount of its Series 2023A 3.875% Convertible Senior Notes due December 15, 2025 (the “Convertible Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). In addition, Southern Company granted the initial purchasers of the Convertible Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Convertible Notes are first issued, up to an additional $225 million in aggregate principal amount of the Convertible Notes. The offering is expected to close on February 28, 2023, subject to customary closing conditions.
Interest on the Convertible Notes will be paid semiannually at a rate of 3.875% per annum. The Convertible Notes will have an initial conversion rate of 11.8818 shares of Southern Company’s common stock per $1,000 principal amount of the Convertible Notes (which is equal to an initial conversion price of $84.16 per share of common stock), representing an initial conversion premium of approximately 30.00% above the last reported sale price of Southern Company’s common stock on February 23, 2023. The conversion rate is subject to adjustment in certain circumstances. The Convertible Notes will mature on December 15, 2025, unless repurchased or converted in accordance with their terms prior to such date.
Over the last 12 months, SO stock dropped by -3.04%. The one-year The Southern Company stock forecast points to a potential upside of 12.04. The average equity rating for SO stock is currently 2.60, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $68.86 billion, with 1.09 billion shares outstanding and 1.09 billion shares in the current float. Compared to the average trading volume of 4.37M shares, SO stock reached a trading volume of 4750272 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on The Southern Company [SO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SO shares is $71.69 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SO stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
KeyBanc Capital Markets have made an estimate for The Southern Company shares, keeping their opinion on the stock as Sector Weight, with their previous recommendation back on January 17, 2023. The new note on the price target was released on December 12, 2022, representing the official price target for The Southern Company stock. Previously, the target price had yet another drop from $63 to $59, while BofA Securities kept a Underperform rating on SO stock.
The Average True Range (ATR) for The Southern Company is set at 1.46, with the Price to Sales ratio for SO stock in the period of the last 12 months amounting to 2.35. The Price to Book ratio for the last quarter was 2.26, with the Price to Cash per share for the same quarter was set at 1.76.
SO Stock Performance Analysis:
The Southern Company [SO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.80. With this latest performance, SO shares dropped by -7.26% in over the last four-week period, additionally sinking by -19.36% over the last 6 months – not to mention a drop of -3.04% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SO stock in for the last two-week period is set at 29.25, with the RSI for the last a single of trading hit 22.81, and the three-weeks RSI is set at 33.94 for The Southern Company [SO]. The present Moving Average for the last 50 days of trading for this stock 68.46, while it was recorded at 64.39 for the last single week of trading, and 70.81 for the last 200 days.
Insight into The Southern Company Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and The Southern Company [SO] shares currently have an operating margin of +19.33 and a Gross Margin at +24.14. The Southern Company’s Net Margin is presently recorded at +12.07.
Return on Equity for this stock inclined to 12.07, with Return on Assets sitting at 2.69.
The Southern Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.50 and a Current Ratio set at 0.70.
SO Stock EPS
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for The Southern Company go to 6.48%.
The Southern Company [SO] Insider Position Details
There are presently around $43,730 million, or 63.50% of SO stock, in the hands of institutional investors. The top three institutional holders of SO stocks are: VANGUARD GROUP INC with ownership of 97,914,225, which is approximately 3.446% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 80,961,709 shares of the stock with an approximate value of $5.11 billion in SO stocks shares; and STATE STREET CORP, currently with $4.11 billion in SO stock with ownership of nearly 0.173% of the company’s market capitalization.
941 institutional holders increased their position in The Southern Company [NYSE:SO] by around 37,449,377 shares. Additionally, 630 investors decreased positions by around 25,004,051 shares, while 292 investors held positions by with 631,012,131 shares. The mentioned changes placed institutional holdings at 693,465,559 shares, according to the latest SEC report filing. SO stock had 207 new institutional investments in for a total of 8,609,637 shares, while 100 institutional investors sold positions of 6,310,368 shares during the same period.