Morgan Stanley Issues Pessimistic Forecast for Atmos Energy (NYSE:ATO) Stock Price

Key Points

• Morgan Stanley lowered its Atmos Energy price target from $190 to $179 while maintaining an “equal weight” rating, implying about 11.1% upside from the stock’s prior close.
• Analyst sentiment remains mixed but leans toward “Hold”: three analysts rate the stock a Buy and ten rate it a Hold, with a consensus price target of $185.09.
• Atmos Energy exceeded quarterly EPS expectations, reporting $1.43 versus the $1.35 consensus, while revenue of $879.06 million fell short of estimates. The company guided to fiscal 2026 EPS of $8.40–$8.50.

Atmos Energy (NYSE:ATO - Get Free Report) had its target price decreased by investment analysts at Morgan Stanley from $190.00 to $179.00 in a note issued to investors on Friday, Benzinga reports. The firm currently has an "equal weight" rating on the utilities provider's stock. Morgan Stanley's price target would suggest a potential upside of 11.07% from the stock's previous close.

Several other equities research analysts have also recently issued reports on ATO. Weiss Ratings reiterated a "buy (b)" rating on shares of Atmos Energy in a research note on Friday, August 28th. JPMorgan Chase & Co. restated a "neutral" rating and issued a $180.00 target price (down from $198.00) on shares of Atmos Energy in a research report on Friday, September 11th. Wells Fargo & Company assumed coverage on shares of Atmos Energy in a report on Monday, July 13th. They issued an "overweight" rating and a $200.00 price objective for the company. Argus lowered their target price on Atmos Energy from $190.00 to $185.00 and set a "buy" rating for the company in a research report on Thursday, July 2nd. Finally, Mizuho decreased their price objective on shares of Atmos Energy from $192.00 to $184.00 and set a "neutral" rating for the company in a research report on Friday, May 29th. 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, the stock has a consensus rating of "Hold" and an average target price of $185.09.

Atmos Energy Price Performance

NYSE:ATO opened at $161.16 on Friday. Atmos Energy has a 52-week low of $160.10 and a 52-week high of $192.51. The company has a market cap of $27.24 billion, a P/E ratio of 19.16, a P/E/G ratio of 2.80 and a beta of 0.60. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.73 and a current ratio of 0.81. The stock's 50-day simple moving average is $170.96 and its 200 day simple moving average is $176.80.

Atmos Energy (NYSE:ATO - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The utilities provider reported $1.43 EPS for the quarter, beating 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 firm had revenue of $879.06 million during the quarter, compared to analysts' expectations of $900.82 million. During the same period in the prior year, the firm posted $1.16 earnings per share. Atmos Energy has set its FY 2026 guidance at 8.400-8.500 EPS. As a group, sell-side analysts forecast that Atmos Energy will post 8.46 EPS for the current fiscal year.

Insider Transactions at Atmos Energy

In related news, Director William Ware bought 300 shares of the company's stock in a transaction on Tuesday, August 11th. The shares were purchased at an average cost of $167.59 per share, for a total transaction of $50,277.00. Following the completion of the purchase, the director directly owned 488 shares in the company, valued at $81,783.92. The trade was a 159.57% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.43% of the company's stock.

Institutional Investors Weigh In On Atmos Energy

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ATO. Frazier Financial Advisors LLC purchased a new stake in Atmos Energy during the 2nd quarter worth about $25,000. Continuum Advisory LLC bought a new stake in shares of Atmos Energy during the 2nd quarter valued at about $25,000. Kingdom Financial Group LLC. bought a new stake in shares of Atmos Energy during the 4th quarter valued at about $26,000. Elevation Wealth Partners LLC grew its holdings in shares of Atmos Energy by 627.3% during the second quarter. Elevation Wealth Partners LLC now owns 160 shares of the utilities provider's stock worth $28,000 after purchasing an additional 138 shares in the last quarter. Finally, Pin Oak Investment Advisors Inc. bought a new position in shares of Atmos Energy in the second quarter worth approximately $28,000. 90.17% of the stock is currently owned by institutional investors.

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.

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