Atmos Energy Corporation (NYSE:ATO) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Atmos Energy Corporation has received a consensus rating of "Moderate Buy" from eleven brokerage firms, with five analysts recommending a hold, four a buy, and two a strong buy.
• The company's stock price target has varied, with Barclays lowering it to $153, while JPMorgan Chase raised it to $166, indicating differing market perspectives.
• Atmos Energy recently approved a quarterly dividend of $0.87 per share, reflecting an annualized dividend yield of 2.22% and a payout ratio of 48.33%.

Shares of Atmos Energy Corporation (NYSE:ATO - Get Free Report) have earned an average recommendation of "Moderate Buy" from the eleven brokerages that are presently covering the stock, MarketBeat reports. Five equities research analysts have rated the stock with a hold rating, four have issued a buy rating and two have given a strong buy rating to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $156.95.

Several research firms have weighed in on ATO. Argus raised Atmos Energy to a "strong-buy" rating in a report on Wednesday, May 28th. Barclays decreased their price target on Atmos Energy from $156.00 to $153.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 10th. Wall Street Zen raised Atmos Energy from a "sell" rating to a "hold" rating in a research note on Friday, May 9th. Wolfe Research began coverage on Atmos Energy in a research note on Monday, March 31st. They issued a "peer perform" rating on the stock. Finally, JPMorgan Chase & Co. raised their price target on Atmos Energy from $164.00 to $166.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 16th.

Atmos Energy Price Performance

ATO stock traded up $1.33 on Friday, reaching $156.01. 614,337 shares of the company's stock were exchanged, compared to its average volume of 591,124. The stock has a fifty day moving average of $154.34 and a 200-day moving average of $151.85. Atmos Energy has a twelve month low of $126.01 and a twelve month high of $167.45. The firm has a market cap of $24.78 billion, a PE ratio of 21.67, a P/E/G ratio of 2.91 and a beta of 0.70. The company has a quick ratio of 1.25, a current ratio of 1.33 and a debt-to-equity ratio of 0.65.

Atmos Energy (NYSE:ATO - Get Free Report) last posted its earnings results on Wednesday, May 7th. The utilities provider reported $3.03 earnings per share for the quarter, beating the consensus estimate of $2.92 by $0.11. The company had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.82 billion. Atmos Energy had a return on equity of 9.05% and a net margin of 25.35%. Atmos Energy's revenue was up 18.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.85 earnings per share. As a group, equities analysts predict that Atmos Energy will post 7.18 EPS for the current fiscal year.

Atmos Energy Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 9th. Stockholders of record on Tuesday, May 27th were issued a $0.87 dividend. The ex-dividend date of this dividend was Tuesday, May 27th. This represents a $3.48 dividend on an annualized basis and a dividend yield of 2.23%. Atmos Energy's payout ratio is presently 48.33%.

Insider Buying and Selling

In other Atmos Energy news, Director Kim R. Cocklin sold 15,000 shares of the stock in a transaction on Wednesday, May 14th. The stock was sold at an average price of $150.98, for a total value of $2,264,700.00. Following the transaction, the director directly owned 172,632 shares in the company, valued at approximately $26,063,979.36. This trade represents a 7.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ATO. First Horizon Advisors Inc. raised its stake in Atmos Energy by 191.2% during the 1st quarter. First Horizon Advisors Inc. now owns 166 shares of the utilities provider's stock worth $26,000 after buying an additional 109 shares during the period. Brooklyn Investment Group increased its position in shares of Atmos Energy by 141.2% in the first quarter. Brooklyn Investment Group now owns 234 shares of the utilities provider's stock valued at $36,000 after acquiring an additional 137 shares during the last quarter. Cary Street Partners Financial LLC acquired a new stake in shares of Atmos Energy in the fourth quarter valued at about $37,000. ST Germain D J Co. Inc. increased its position in Atmos Energy by 50.0% during the second quarter. ST Germain D J Co. Inc. now owns 300 shares of the utilities provider's stock worth $46,000 after buying an additional 100 shares during the last quarter. Finally, Golden State Wealth Management LLC increased its position in Atmos Energy by 379.7% during the first quarter. Golden State Wealth Management LLC now owns 331 shares of the utilities provider's stock worth $51,000 after buying an additional 262 shares during the last quarter. 90.17% of the stock is currently owned by institutional investors.

Atmos Energy Company Profile

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states.