Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Stan ConnallyPresident, GPCMay 25,631No8,976 shares + 5,631 options27.8%
Mark CrosswhitePresident, APCMay 122,460No11,759 shares65.6%
Ann DaissComptrollerApril 7-2832,120Yes2,436 shares93.0%

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.

MonthInsider selling / sharesInsider buying / shares
May 201428,0910
April 201432,1200
March 201400
February 201400
January 201400
December 201326,3100
November 2013010,000
October 201300
September 201300
August 201300
July 201300
June 201300
May 20130400
April 201337,3840
March 2013163,4640
February 201300
January 201300

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

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.

CompanySOCNPETRNEE
Market Cap:39.60B10.46B13.14B42.90B
Employees:26,3008,59114,00013,900
Qtrly Rev Growth (yoy):0.190.330.230.12
Revenue:17.83B8.88B11.99B15.53B
Gross Margin:0.420.260.360.45
EBITDA:5.92B1.92B3.88B6.12B
Operating Margin:0.200.110.170.23
Net Income:1.91B349.00M951.68M2.11B
EPS:2.160.815.334.80
P/E:20.5430.0413.7420.40
PEG (5 yr expected):4.405.64-13.102.94
P/S:2.221.181.092.76

Southern Company has the second-highest P/S ratio among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
CNP00
ETR074,797
NEE045,173

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.

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