Introduction
Southern Company is a US energy company that was founded in 1945. It is based in Atlanta, GA and is the largest investor-owned energy provider in the U.S. Southern Company is listed on the New York Stock Exchange (NYSE) and is a component of S&P 500. Since its founding, Southern Company has become a major player in the energy markets and has a number of subsidiaries and subsidiaries of subsidiaries. As such, the company has a stock price that can often be volatile. Looking at the company’s stock splits can provide an overview of how the company has performed over time and an insight into the company’s current financial position.
Background of Southern Company
Southern Company, known simply as ‘Southern’, is a power company that was incorporated in 1945, just before the end of World War II. The company is headquartered in Atlanta, GA and traces its roots back to several internal power companies that were at that time forming the ‘Southern Power Union’. From there, Southern Company became one of the largest US energy companies with many subsidiaries, generating and distributing electricity to customers in the United States.
What is Stock Splitting?
A stock split occurs when the company increases the number of issued and outstanding stock by dividing each existing stock into several shares. For example, if a company has a 2 for 1 stock split, then each shareholder will receive an extra share for each share that they already had. Stock splits are mainly done to attract new investors, as well as make the stock more attractive for existing investors since the share price is usually reduced.
When Did Southern Company Stock Split?
Southern Company has undertaken several stock splits since its founding in 1945. The first stock split took place in 1962 when the company had a 2 for 1 split. After that, the company had another 2 for 1 split in 1979. The company then had a 3 for 2 split in 1988, followed by a 3 for 2 split in 1994. The last stock split was a 3 for 1 split in 2000. Since then, the company has acquired a number of subsidiaries and has become a major player in the energy market, but no further stock splits have happened.
When Southern Company has split its stock, it has had a largely positive effect on shareholder value. Stock splits generally result in a decrease in share price but an increase in value in terms of the number of shares owned by each shareholder. For example, when Southern Company had its 3 for 1 stock split in 2000, the company’s share price decreased by 33%. However, since each existing shareholder received two additional shares, the total value of their holdings increased by 50%. This means that shareholders still saw an overall gain in value, even if the share price was lower.
Conclusion of Southern Company’s Stock Splits
Overall, Southern Company has used its stock splits to great effect to attract new investors and optimize its shareholder value. While the share price may have been temporarily reduced, shareholders generally saw an overall increase in their holdings and the stock was able to attract new investors. As such, Southern Company’s stock splits have consistently been beneficial to the underlying company and its shareholders.
Market Cap of Southern Company
The market capitalization of Southern Company is currently at $50.9 billion which makes the company the 72nd largest company in the U.S. The market capitalization has been consistently increasing over the years and has grown by 78% since 2009, showing incredible growth and financial stability for the company. In addition, Southern Company is part of the S&P 500 index which is considered to be a benchmark for many investors and shows the long-term safety of the company.
Recent Performance of Southern Company
Southern Company’s stock has been rising steadily and the company has reported three straight quarters of profits. In it’s latest quarter, Southern Company reported a net income of $831 million and a total revenue of $5 billion. This is a 6% increase in net income and a 4.5% increase in total revenue compared to the same period last year, indicating that the company is doing well financially.
Analysts Opinion of Southern Company
Analysts generally have positive opinions about Southern Company. The company is viewed as a stable and profitable company with a long track record of success. Analysts recommend the company as a good buy with a three year average target price of 43.42, which is over 25% higher than the current market price. This indicates that analysts view Southern Company as a solid buy with good potential for growth.
Factors Affecting Southern Company Stock Movement
Southern Company’s stock can be affected by the overall state of the economy, the company’s performance, and the changing landscape of the energy sector. In particular, the company’s stock can be affected by fluctuations in oil prices, changes in electric power demand, and changes in renewable energy sources. Investor sentiment also affects Southern Company stock, so any news or rumors regarding the company can cause the stock to move.
Conclusion
Southern Company has been a consistent player in the energy sector for over seventy years and has been able to weather economic downturns and changes in the energy markets. The company has utilized stock splits to attract new investors and optimize the value of existing shares. And with a strong market capitalization and positive analyst opinion, Southern Company looks to continue to be a major player in the energy sector.
