Keybanc Cuts The Southern (SO) Price Target to $74

Keybanc reiterated its Underweight rating on The Southern Company (NYSE: SO) on October 13, 2026, adjusting its price target from $79.0 to $74.0. The firm believes the stock's current valuation does not justify a higher rating.

Currently, SO is trading recently at around $90.36, which is about 22.1% above Keybanc's new price target. This suggests the stock may be overvalued based on Keybanc's analysis. The company operates in the regulated electric utilities sector, providing electricity to a wide range of customers.

Other Institutional Activity in The Southern Company

Several institutional investors have also been active with their positions in The Southern Company. Blackrock Inc. increased its stake by 2,620,730 shares, bringing its total to 92,990,716 shares valued at approximately $8.48 billion. Vanguard Capital Management LLC added 2,124,749 shares for a total of 73,665,124 shares worth about $6.72 billion. State Street Corporation increased its holdings by 1,832,633 shares, totaling 64,809,708 shares valued at around $5.91 billion. Additionally, Capital World Investors grew its position by 6,276,616 shares, resulting in 62,518,698 shares worth about $5.70 billion. Price (T. Rowe) Associates Inc. also increased its stake by 9,991,276 shares, reaching a total of 46,415,904 shares valued at approximately $4.23 billion.

The Southern Company Stock Up 5.7%

The Southern Company's shares are currently trading above its new target price of $74.0, indicating potential overvaluation according to Keybanc's assessment. The stock's recent performance suggests it is priced significantly higher than where Keybanc believes it should be, raising questions about future growth prospects.

Recent Earnings

The Southern Company reported trailing twelve-month revenue of approximately $30.18 billion and earnings per share (EPS) of $4.15. The company has shown a revenue growth of 0.1% year-over-year and maintains a net margin of 15.4%. The next earnings report is scheduled for October 29, 2026.

Dividend

The Southern Company pays an annual dividend of $3.04 per share, which results in a yield of 3.04%. The company has a dividend payout ratio of 71.8%, indicating a commitment to returning value to its shareholders.

Insider Buying and Selling at The Southern Company

Several insiders have sold shares recently. Officer Matthew M. Kim sold 100 shares at a price of $88.45 on September 1, 2026, totaling $8,845. He also sold 1,400 shares at $88.87 on September 3, bringing in $124,418. On the same day, Officer Peter P. Sena III sold 4,266 shares at $88.59, amounting to $377,925. Additionally, Matthew M. Kim sold another 100 shares at $82.73 on October 1, 2026, for a total of $8,273.

Analysts Set New Price Targets

On October 13, 2026, Keybanc maintained its Underweight rating on The Southern Company, lowering its price target from $79.0 to $74.0. Additionally, JP Morgan maintained a Neutral rating with a target of $94.0, down from $101.0. Earlier, Morgan Stanley also maintained an Underweight rating with a target reduction from $89.0 to $85.0.

About The Southern Company

The Southern Company, based in Atlanta, Georgia, is a leading energy provider in the United States. It supplies electricity through its subsidiaries to both retail and wholesale customers. The company is known for its focus on energy-related products and services, particularly in the regulated electric utilities sector.

Bottom Line

Investors should keep an eye on the upcoming earnings report on October 29, 2026, for insights into the company's performance. With Keybanc's recent adjustments and the stock trading above its new target, market watchers will be keen to see how The Southern Company navigates its upcoming challenges.