Southern Company: 3 Different Insiders Have Sold Shares During The Last 30 Days

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 |  About: Southern Company (SO), Includes: CNP, ETR, NEE
by: Markus Aarnio

Summary

3 insiders sold Southern Company's stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 3 of these insiders decreased their holdings by more than 10%.

The Southern Company (NYSE:SO) operates as a public electric utility company.

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Insider selling during the last 30 days

Here is a table of Southern Company's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Stan Connally President, GPC May 2 5,631 No 8,976 shares + 5,631 options 27.8%
Mark Crosswhite President, APC May 1 22,460 No 11,759 shares 65.6%
Ann Daiss Comptroller April 7-28 32,120 Yes 2,436 shares 93.0%
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There have been 60,211 shares sold by insiders during the last 30 days. Ann Daiss sold shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.

Insider selling by calendar month

Here is a table of Southern Company's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
May 2014 28,091 0
April 2014 32,120 0
March 2014 0 0
February 2014 0 0
January 2014 0 0
December 2013 26,310 0
November 2013 0 10,000
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 0 400
April 2013 37,384 0
March 2013 163,464 0
February 2013 0 0
January 2013 0 0
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There have been 287,369 shares sold, and there have been 10,400 shares purchased by insiders since January 2013.

Financials

Southern Company reported the first-quarter financial results on April 30 with the following highlights:

Revenue $4.6 billion
Net income $351 million
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Two of these three insiders sold their shares after these results.

Competition

Southern Company's competitors include CenterPoint Energy (NYSE:CNP), Entergy Corporation (NYSE:ETR), and NextEra Energy (NYSE:NEE). Here is a table comparing these companies.

Company SO CNP ETR NEE
Market Cap: 39.60B 10.46B 13.14B 42.90B
Employees: 26,300 8,591 14,000 13,900
Qtrly Rev Growth (yoy): 0.19 0.33 0.23 0.12
Revenue: 17.83B 8.88B 11.99B 15.53B
Gross Margin: 0.42 0.26 0.36 0.45
EBITDA: 5.92B 1.92B 3.88B 6.12B
Operating Margin: 0.20 0.11 0.17 0.23
Net Income: 1.91B 349.00M 951.68M 2.11B
EPS: 2.16 0.81 5.33 4.80
P/E: 20.54 30.04 13.74 20.40
PEG (5 yr expected): 4.40 5.64 -13.10 2.94
P/S: 2.22 1.18 1.09 2.76
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Southern Company has the second-highest P/S ratio among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
CNP 0 0
ETR 0 74,797
NEE 0 45,173
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Entergy Corporation has also seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Southern Company, and there have not been any insiders buying Southern Company during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Southern Company has an insider ownership of 0.02%.

There is one analyst buy rating, 18 neutral ratings, and two sell ratings with an average price target of $44.29. Before going short Southern Company, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, bearish analyst price targets, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.