Southern (NYSE:SO) Shares Gap Up – Here’s Why

Southern Company (The) (NYSE:SO)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $91.04, but opened at $95.50. Southern shares last traded at $94.4570, with a volume of 4,283,565 shares changing hands.

Southern News Roundup

Here are the key news stories impacting Southern this week:

• Positive Sentiment: Company raised Q1 2026 guidance sharply to $1.20 (vs. Street ~$0.83), signaling stronger near-term earnings visibility and support from large-load customers. Southern Company reports fourth-quarter and full-year 2025 earnings
• Positive Sentiment: FY 2026 EPS guidance was updated to $4.50–$4.60, slightly above consensus (~$4.45), which supports a higher multi-quarter outlook. Southern Company reports fourth-quarter and full-year 2025 earnings
• Positive Sentiment: Q4 revenue came in above estimates ($6.98B vs. ~$6.41B), showing top-line growth (+10.1% YoY) that helped offset a slight EPS miss. Press Release / Slide Deck
• Neutral Sentiment: Georgia Power (a Southern unit) filed rate cases seeking lower customer costs beginning in June — regulatory moves that reduce customer bills but can affect timing and structure of utility recovery. Georgia Power filings
• Neutral Sentiment: Brokerage consensus remains a “Hold,” reflecting mixed analyst views despite guidance upside. Consensus Recommendation
• Negative Sentiment: Reuters reports Southern forecasted annual profit below some analysts’ estimates while also raising its five-year spending plan to support demand from large-load customers — higher capex and a below-consensus profit outlook are potential near-term headwinds. Reuters: Forecasts below estimates, raises spending plan
• Negative Sentiment: Southern missed Q4 EPS by a penny ($0.55 vs. $0.56 expected), which, along with year-over-year declines in certain GAAP metrics, tempers the upside from guidance. Zacks: Misses Q4 earnings
• Negative Sentiment: Company reported lower Q4 and full-year 2025 GAAP earnings versus the prior year (press release), underscoring some operational and timing pressures. PR Newswire: Q4 and FY 2025 results

Wall Street Analyst Weigh In

A number of research analysts have weighed in on SO shares. Wall Street Zen lowered Southern from a “hold” rating to a “sell” rating in a report on Saturday, December 6th. Jefferies Financial Group decreased their price target on shares of Southern from $104.00 to $93.00 and set a “neutral” rating on the stock in a research note on Monday, December 15th. TD Cowen reaffirmed a “buy” rating on shares of Southern in a research note on Thursday, December 11th. Morgan Stanley reissued an “underweight” rating and issued a $85.00 target price on shares of Southern in a research note on Wednesday, January 21st. Finally, UBS Group lowered their target price on Southern from $98.00 to $94.00 and set a “neutral” rating on the stock in a report on Wednesday, December 17th. Four research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $94.91.

Southern Price Performance

The firm has a market cap of $103.69 billion, a price-to-earnings ratio of 23.34, a P/E/G ratio of 2.78 and a beta of 0.45. The company has a current ratio of 0.75, a quick ratio of 0.59 and a debt-to-equity ratio of 1.69. The stock’s fifty day moving average price is $88.35 and its 200-day moving average price is $91.31.

Southern (NYSE:SO) last issued its quarterly earnings data on Thursday, February 19th. The utilities provider reported $0.55 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.01). The business had revenue of $6.98 billion during the quarter, compared to analysts’ expectations of $6.41 billion. Southern had a return on equity of 12.52% and a net margin of 15.42%.The company’s revenue was up 10.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.50 earnings per share. Southern has set its Q1 2026 guidance at 1.200-1.20 EPS and its FY 2026 guidance at 4.500-4.600 EPS. As a group, equities research analysts forecast that Southern Company will post 4.29 earnings per share for the current fiscal year.

Southern Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 6th. Investors of record on Tuesday, February 17th will be issued a $0.74 dividend. This represents a $2.96 annualized dividend and a yield of 3.1%. The ex-dividend date is Tuesday, February 17th. Southern’s payout ratio is 73.27%.

Institutional Investors Weigh In On Southern

Institutional investors have recently made changes to their positions in the stock. Cloud Capital Management LLC purchased a new stake in Southern in the third quarter valued at approximately $25,000. Ankerstar Wealth LLC acquired a new stake in shares of Southern in the fourth quarter valued at $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Southern in the fourth quarter valued at $27,000. J.Safra Asset Management Corp purchased a new stake in shares of Southern in the 4th quarter valued at $27,000. Finally, Grey Fox Wealth Advisors LLC acquired a new position in Southern during the 3rd quarter worth about $29,000. 64.10% of the stock is currently owned by institutional investors and hedge funds.

About Southern

Southern Company (NYSE: SO) is an Atlanta-based energy holding company that provides electric and gas utility services and owns power generation assets across the United States. Founded in 1945, the company operates a portfolio of regulated electric utilities and affiliated businesses that generate, transmit and distribute electricity to residential, commercial and industrial customers.

Southern’s principal regulated electric subsidiaries include Georgia Power, Alabama Power and Mississippi Power, which serve large portions of the southeastern United States.