Atmos Energy (NYSE:ATO) Reaches New 12-Month Low Following Analyst Downgrade

Shares of Atmos Energy Corporation (NYSE:ATO) reached a new 52-week low during mid-day trading on Friday after Morgan Stanley lowered their price target on the stock from $190.00 to $179.00. Morgan Stanley currently has an equal weight rating on the stock. Atmos Energy traded as low as $160.00 and last traded at $160.1730, with a volume of 240552 shares trading hands. The stock had previously closed at $162.03.

A number of other analysts also recently weighed in on ATO. Mizuho decreased their price objective on Atmos Energy from $192.00 to $184.00 and set a “neutral” rating for the company in a report on Friday, May 29th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $180.00 price target (down from $198.00) on shares of Atmos Energy in a research report on Friday, September 11th. Argus decreased their price target on Atmos Energy from $190.00 to $185.00 and set a “buy” rating for the company in a research note on Thursday, July 2nd. Wells Fargo & Company initiated coverage on Atmos Energy in a research report on Monday, July 13th. They set an “overweight” rating and a $200.00 price objective for the company. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Atmos Energy in a research note on Friday, August 28th. Three analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Atmos Energy presently has a consensus rating of “Hold” and a consensus target price of $185.09.

Insider Activity

In related news, Director William Ware acquired 300 shares of Atmos Energy stock in a transaction dated Tuesday, August 11th. The stock was bought at an average price of $167.59 per share, with a total value of $50,277.00. Following the transaction, the director directly owned 488 shares in the company, valued at $81,783.92. This represents a 159.57% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of ATO. Frazier Financial Advisors LLC bought a new stake in Atmos Energy in the second quarter valued at $25,000. Continuum Advisory LLC bought a new position in shares of Atmos Energy during the 2nd quarter worth about $25,000. Pin Oak Investment Advisors Inc. acquired a new stake in shares of Atmos Energy in the 2nd quarter valued at about $28,000. Kingdom Financial Group LLC. acquired a new stake in shares of Atmos Energy in the 4th quarter valued at about $26,000. Finally, Elevation Wealth Partners LLC increased its position in Atmos Energy by 627.3% in the 2nd quarter. Elevation Wealth Partners LLC now owns 160 shares of the utilities provider’s stock valued at $28,000 after buying an additional 138 shares in the last quarter. Institutional investors and hedge funds own 90.17% of the company’s stock.

Atmos Energy Price Performance

The business has a 50-day moving average of $170.96 and a 200 day moving average of $176.80. The company has a current ratio of 0.81, a quick ratio of 0.73 and a debt-to-equity ratio of 0.64. The firm has a market capitalization of $27.09 billion, a P/E ratio of 19.09, a price-to-earnings-growth ratio of 2.80 and a beta of 0.60.

Atmos Energy (NYSE:ATO) last announced its quarterly earnings results on Wednesday, August 5th. The utilities provider reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.35 by $0.08. Atmos Energy had a return on equity of 9.67% and a net margin of 28.50%.The business had revenue of $879.06 million for the quarter, compared to analyst estimates of $900.82 million. During the same quarter in the prior year, the company earned $1.16 earnings per share. Atmos Energy has set its FY 2026 guidance at 8.400-8.500 EPS. On average, sell-side analysts predict that Atmos Energy Corporation will post 8.46 earnings per share for the current fiscal year.

Atmos Energy Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 24th were issued a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Monday, August 24th. Atmos Energy’s dividend payout ratio (DPR) is currently 47.56%.

About Atmos Energy

Atmos Energy Corporation (NYSE:ATO) is a regulated natural gas distribution and pipeline company headquartered in Dallas, Texas. Through its utility operations, the company delivers natural gas to residential, commercial, industrial and agricultural customers, with services focused on safe and reliable energy delivery.

Atmos Energy serves customers across eight states: Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, Texas and Virginia. Its operations include local natural gas distribution as well as pipeline transportation and storage activities, primarily through its Atmos Pipeline-Texas business.

The company traces its roots to 1906 and has expanded over time through growth and acquisitions in the natural gas industry.