SO Should I Buy
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Not a good buy right now. SO is trading near near-term resistance (89.34–89.97) with momentum flattening, multiple recent Wall Street downgrades/underweight calls and price targets clustered below the current price, and elevated political/regulatory uncertainty in Georgia cited as a key overhang. Given an impatient trading stance (unwilling to wait for better entries), the risk/reward at 89.42 skews unfavorable today—recommend SELL/avoid new buys until price resets closer to support (87.30) and sentiment/targets stabilize.
Intellectia Proprietary Trading Signals
Price is consolidating near resistance: Pivot 88.323; R1 89.341 (price ~89.42 slightly above); R2 89.97 overhead. RSI(6) ~59.93 is neutral (no oversold edge), while MACD histogram is positive (0.142) but positively contracting, suggesting bullish momentum is fading rather than strengthening. Moving averages are converging, consistent with a range-bound/late-stage consolidation. Pattern-based forward odds provided are slightly bearish (next week/month expected drift negative), which is a poor setup for an immediate chase entry at resistance.
Dividend stability and shareholder return support: declared $0.74 quarterly dividend, extending a long dividend-payment streak (78 consecutive years). Hedge funds have been net buyers (buying amount up ~213.85% QoQ), and Congress activity shows only buys (4 purchases, 0 sales; median ~$0.8M), which can be read as confidence. Storm restoration execution (Georgia Power) reinforces operational resilience. Upcoming earnings (2026-02-19 pre-market) could be a catalyst if guidance/regulated rate outlook surprises positively.
Near-term technical setup is unfavorable (price pressing into resistance with fading MACD momentum and bearish pattern-based 1W/1M drift). Analyst sentiment recently turned more cautious with multiple Underweight ratings and reduced price targets, often pointing to political/regulatory noise in Georgia into the 2026 cycle. Insiders are selling (selling amount up ~157.49% over the last month), which is a notable sentiment negative. Utilities can also face headline risk tied to nuclear/policy debates (noted criticism from a federal official regarding nuclear funding demands), adding event-driven uncertainty.
Latest reported quarter: 2025/Q3. Growth was solid: revenue $7.823B (+7.55% YoY), net income $1.711B (+11.47% YoY), and EPS $1.54 (+10.79% YoY). The main blemish was profitability pressure: gross margin fell to 57.84% (down ~4.49% YoY), suggesting cost/recovery dynamics are worth monitoring. Overall: earnings and top-line trends were positive, but margin compression plus regulatory uncertainty reduces the attractiveness of buying at a near-term technical ceiling.
Recent trend: price targets and ratings skewed downward/cautious overall, with several Underweight calls and reduced targets since mid-Dec, mainly citing regulatory/political uncertainty in Georgia and questions about the ability to rebase/accelerate EPS growth. Notable changes: Wells Fargo downgraded to Underweight with PT cut to $84 (from $97) on political/regulatory uncertainty; Morgan Stanley moved to/maintained Underweight with PT raised to $85 (still below current price); KeyBanc stayed Underweight with a low PT ($76) arguing limited growth upside vs what the market prices; JPMorgan and UBS stayed Neutral with lowered targets. Counterbalance: RBC recently raised PT to $105 but kept Sector Perform (not an outright Buy), and one bullish outlier exists (TD Cowen Buy) but appears inconsistent with the broader tape.
Wall Street pros: dependable regulated utility with a strong dividend and constructive load-growth narrative in the Southeast. Wall Street cons: valuation/premium vulnerability, regulatory/political headline risk in Georgia into 2026, and limited near-term catalysts to justify upside from ~89+ when multiple targets sit below spot.
