Atmos Energy (NYSE:ATO) Cut to "Sell" at Wall Street Zen

Key Points

• Atmos Energy has been downgraded from a "hold" rating to a "sell" rating by investment analysts at Wall Street Zen.
• Several research firms have given mixed ratings, with consensus reflecting an average rating of "Hold" and a target price of $158.27.
• In its latest quarterly earnings, Atmos Energy reported an EPS of $1.16, missing estimates and highlighting challenges in revenue generation.

Wall Street Zen downgraded shares of Atmos Energy (NYSE:ATO - Free Report) from a hold rating to a sell rating in a report released on Saturday morning.

ATO has been the topic of several other reports. JPMorgan Chase & Co. lifted their target price on shares of Atmos Energy from $164.00 to $166.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 16th. Barclays dropped their target price on shares of Atmos Energy from $156.00 to $153.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 10th. UBS Group reissued a "neutral" rating and issued a $159.00 target price (up from $146.00) on shares of Atmos Energy in a research report on Wednesday, July 30th. Citigroup lifted their target price on shares of Atmos Energy from $148.00 to $163.00 and gave the stock a "neutral" rating in a research report on Friday, May 16th. Finally, Argus raised shares of Atmos Energy to a "strong-buy" rating in a research report on Wednesday, May 28th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, four have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Atmos Energy presently has an average rating of "Hold" and an average target price of $158.27.

Atmos Energy Price Performance

Shares of ATO traded up $0.59 during mid-day trading on Friday, hitting $165.63. The company's stock had a trading volume of 454,001 shares, compared to its average volume of 979,379. The firm has a 50-day moving average price of $155.00 and a 200 day moving average price of $152.99. The stock has a market capitalization of $26.59 billion, a price-to-earnings ratio of 22.76, a PEG ratio of 3.03 and a beta of 0.69. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.37 and a quick ratio of 1.25. Atmos Energy has a fifty-two week low of $127.43 and a fifty-two week high of $167.45.

Atmos Energy (NYSE:ATO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The utilities provider reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.17 by ($0.01). The business had revenue of $838.77 million during the quarter, compared to analyst estimates of $848.97 million. Atmos Energy had a return on equity of 9.00% and a net margin of 25.05%. During the same period in the prior year, the firm earned $1.08 EPS. On average, research analysts predict that Atmos Energy will post 7.18 EPS for the current fiscal year.

Atmos Energy Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 8th. Investors of record on Monday, August 25th will be issued a dividend of $0.87 per share. This represents a $3.48 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Monday, August 25th. Atmos Energy's dividend payout ratio (DPR) is currently 47.80%.

Insider Activity at Atmos Energy

In related news, Director Kim R. Cocklin sold 15,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $150.98, for a total transaction of $2,264,700.00. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.48% of the company's stock.

Institutional Trading of Atmos Energy

A number of institutional investors have recently added to or reduced their stakes in ATO. Capital International Investors lifted its stake in shares of Atmos Energy by 211.8% in the fourth quarter. Capital International Investors now owns 8,160,144 shares of the utilities provider's stock worth $1,136,463,000 after buying an additional 5,543,451 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in shares of Atmos Energy by 541.4% in the fourth quarter. BNP Paribas Financial Markets now owns 1,525,116 shares of the utilities provider's stock worth $212,403,000 after buying an additional 1,287,325 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of Atmos Energy by 146.2% in the fourth quarter. Bank of America Corp DE now owns 1,713,421 shares of the utilities provider's stock worth $238,628,000 after buying an additional 1,017,575 shares during the last quarter. Vanguard Group Inc. lifted its stake in shares of Atmos Energy by 2.1% in the first quarter. Vanguard Group Inc. now owns 20,791,335 shares of the utilities provider's stock worth $3,213,925,000 after buying an additional 424,235 shares during the last quarter. Finally, Nuveen LLC acquired a new stake in shares of Atmos Energy in the first quarter worth $65,333,000. 90.17% of the stock is currently owned by institutional investors and hedge funds.

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.