Southern Co (NYSE:SO) has reported that its Chairman, President, and CEO of Georgia Power Company, Kimberly S. Greene, has sold a significant portion of her stock in the company. The transactions, which took place on May 1 and May 2, 2024, involved the sale of a total of 20,000 shares at prices ranging from $75.01 to $75.04 per share.
The first sale on May 1 consisted of 9,126 shares at an average price of $75.04, while the second sale on May 2 saw 10,874 shares sold at an average price of $75.01. The total amount realized from these sales exceeded $1.5 million, reflecting the CEO's substantial stake in the company.
Following the transactions, Greene's remaining direct ownership in Southern Co stands at 110,630 shares. The sales were conducted in multiple transactions at prices that varied within the reported range, as noted in the SEC filing footnote. This information is available upon request and provides full details regarding the number of shares sold at each separate price.
Investors and market watchers often pay close attention to insider transactions such as these, as they can provide insights into an executive's perspective on the company's current valuation and future prospects.
Southern Co, headquartered in Atlanta, Georgia, is a leading energy company providing electric service in the region. The stock is listed on the New York Stock Exchange under the ticker symbol SO.
InvestingPro Insights
As Southern Co (NYSE:SO) faces scrutiny following the insider sale by its CEO, Kimberly S. Greene, investors are looking for additional signals that might indicate the company's financial health and future performance. According to InvestingPro data, Southern Co has a market capitalization of $82.23 billion, with a P/E ratio slightly north of 20, specifically 20.79 as of the last twelve months ending Q4 2023. Despite a revenue decline of 13.75% during the same period, the company has maintained a strong gross profit margin of 46.36%.
One of the notable InvestingPro Tips for Southern Co is its long-standing history of dividend payments, having maintained them for 54 consecutive years. This could be a reassuring factor for investors concerned about the company's commitment to shareholder returns, especially as the CEO liquidates a portion of her holdings. Moreover, the company has increased its dividend for 22 consecutive years, which is a testament to its financial resilience and management's confidence in its operations.
However, the company is trading near its 52-week high, with the price at 99.17% of this peak, indicating that the stock may be fully valued at current levels. This insight, coupled with the high P/E ratio relative to near-term earnings growth, suggests that investors should be cautious about the stock's valuation. Southern Co's next earnings date is set for May 2, 2024, which will likely provide further clarity on the company's financial trajectory.
For those interested in a deeper analysis, InvestingPro offers additional tips on Southern Co, which can be accessed by visiting the dedicated page for the company. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of investment insights and data.
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