On July 21, 2023, Kimberly Greene, Chairman, President & CEO of Southern Co (SO, Financial), sold 20,000 shares of the company. This move is part of a larger trend, as Greene has sold a total of 67,326 shares over the past year, without any purchases.
Kimberly Greene has been with Southern Co since 2013, serving in various leadership roles before becoming Chairman, President & CEO. She has a wealth of experience in the energy sector, having previously worked at Tennessee Valley Authority and Southern Company Services.
Southern Co is a leading energy company in the United States, providing clean, safe, reliable, and affordable energy to millions of customers. The company owns electric utilities in three states, natural gas distribution utilities in four states, a competitive generation company serving wholesale customers across America, and a nationally recognized provider of customized energy solutions, as well as fiber optics and wireless communications.
The insider transaction history for Southern Co shows a clear trend of insider selling, with 24 insider sells over the past year and no insider buys. This could be a signal to investors about the company's future prospects.
On the day of Greene's recent sell, Southern Co's shares were trading at $72.62, giving the company a market cap of $79.544 billion. The price-earnings ratio is 23.61, higher than both the industry median of 16.23 and the company's historical median price-earnings ratio. This suggests that the stock may be overvalued.
However, the GuruFocus Value of Southern Co is $78.80, resulting in a price-to-GF-Value ratio of 0.92. This indicates that the stock is fairly valued. The GF Value is an intrinsic value estimate developed by GuruFocus, based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.
In conclusion, the recent insider sell by Kimberly Greene, along with the trend of insider selling at Southern Co, could be a signal for investors to exercise caution. While the stock appears to be fairly valued according to the GuruFocus Value, its high price-earnings ratio compared to the industry median suggests that it may be overvalued. Investors should carefully consider these factors when making investment decisions.
