HSBC Initiates The Southern (SO) at Buy

HSBC initiated coverage on The Southern Company NYSE: SO on October 22, 2026, issuing a Buy rating and a $99.50 price target. According to the research note, the firm's new target points to potential upside from recent trading levels.

SO The Southern Company

$90.59 ▲ +6.46% year to date

1M 3M YTD

Daily close · Oct 21, 2026

HSBC's Call on The Southern Company

On October 22, 2026, HSBC started coverage on the utility provider with a Buy rating and set its price target at $99.50. This forward-looking opinion reflects the firm's outlook on the company's business model and regulated electric operations.

Other Institutional Activity in The Southern Company

Other large investors adjusted their holdings in the utility recently. Quadrant Capital Group cut its stake by 43.8%, selling 15,413 shares to finish with 19,750 shares worth about $1.74 million. Bell Bank lowered its position by 16.6%, selling 23,231 shares to end with 116,905 shares valued at roughly $9.69 million. Soroban Capital Partners reduced its holdings by 61.0%, selling 3,718,097 shares to hold 2,375,511 shares worth about $227.36 million. Franklin Resources, Inc. trimmed its stake by 1.5%, selling 247,092 shares to conclude with 16,561,908 shares valued at approximately $1.50 billion.

The Southern Company Stock Up 1.1%

The stock recently traded around $90.71 as of October 22, 2026, up about 0.4% from its previous close of $90.39 on October 21, 2026. Shares sit roughly 3.4% above their 50-day moving average of $87.73 and about 1.6% below their 200-day moving average of $92.22.

Recent Earnings

The company generated $30.18 billion in trailing twelve-month revenue and earned $4.15 per share over the same period. Its net profit margin stood at 15.4%, with a return on equity of 11.5%. The next earnings release is scheduled for November 5, 2026.

Dividend

The Southern Company pays an annual dividend of $3.04 per share, translating to a dividend yield of 3.35%. The payout ratio sits at 71.8% of earnings.

Insider Buying and Selling at The Southern Company

Four insider transactions occurred ahead of the analyst note. Matthew M. Kim, an officer, sold 100 shares on September 1, 2026, at an average price of $88.45 for a total value of $8,845. On September 3, 2026, officer Peter P Sena III sold 4,266 shares at $88.59 apiece, totaling $377,925. On the same date, Matthew M. Kim sold an additional 1,400 shares at $88.87 each, worth $124,418. Finally, Kim sold another 100 shares on October 1, 2026, at $82.73 per share, totaling $8,273.

Analysts Set New Price Targets

Several other firms updated their views on the stock prior to HSBC's note. Truist Securities maintained a Hold rating and lowered its price target from $97.00 to $93.00 on October 15, 2026. Barclays maintained an Equal-Weight rating and cut its target from $101.00 to $92.00 on October 16, 2026. Jefferies maintained a Hold rating and trimmed its target from $96.00 to $95.00 on October 20, 2026. Morgan Stanley maintained an Underweight rating and adjusted its target from $85.00 to $84.00 on October 21, 2026. Overall, the stock carries a consensus Hold recommendation from 19 analysts, with a mean price target of $96.24.

About The Southern Company

Headquartered in Atlanta, Georgia, The Southern Company operates through its subsidiaries to provide regulated electric service to retail and wholesale customers, alongside energy-related services in natural gas choice markets.

Bottom Line

Investors will look toward the company's upcoming earnings report on November 5, 2026, for further updates on financial performance and operational guidance.