Atmos Energy (NYSE:ATO) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Atmos Energy from “Hold” to “Sell.” Despite the downgrade, the broader analyst consensus remains “Hold,” with four Buy ratings and ten Hold ratings and an average price target of $186.92.
• Atmos Energy shares opened at $173.12, below the consensus price target, with a 12-month trading range of $154.55 to $192.51 and a market capitalization of approximately $28.9 billion.
• The company recently exceeded quarterly expectations, reporting $3.47 in EPS versus the $3.37 estimate and $1.96 billion in revenue. Management’s FY 2026 EPS guidance is $8.40–$8.50, while analysts expect $8.44.

Atmos Energy (NYSE:ATO - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Monday.

A number of other brokerages have also recently commented on ATO. Truist Financial increased their price target on Atmos Energy from $187.00 to $188.00 and gave the company a "hold" rating in a research note on Friday, July 17th. JPMorgan Chase & Co. boosted their price objective on Atmos Energy from $196.00 to $198.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. Barclays lowered their target price on Atmos Energy from $184.00 to $183.00 and set an "equal weight" rating for the company in a report on Tuesday, July 14th. TD Cowen increased their target price on Atmos Energy from $193.00 to $196.00 and gave the company a "hold" rating in a research report on Friday, May 15th. Finally, Wells Fargo & Company assumed coverage on Atmos Energy in a research note on Monday, July 13th. They set an "overweight" rating and a $200.00 price target on the stock. Four equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $186.92.

Atmos Energy Price Performance

Shares of Atmos Energy stock opened at $173.12 on Monday. The company has a quick ratio of 0.89, a current ratio of 1.00 and a debt-to-equity ratio of 0.65. The stock has a market capitalization of $28.90 billion, a price-to-earnings ratio of 21.27, a price-to-earnings-growth ratio of 3.00 and a beta of 0.60. Atmos Energy has a twelve month low of $154.55 and a twelve month high of $192.51. The company has a 50-day simple moving average of $173.65 and a two-hundred day simple moving average of $178.08.

Atmos Energy (NYSE:ATO - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The utilities provider reported $3.47 earnings per share for the quarter, beating the consensus estimate of $3.37 by $0.10. The firm had revenue of $1.96 billion during the quarter, compared to analysts' expectations of $1.94 billion. Atmos Energy had a return on equity of 9.59% and a net margin of 27.58%.During the same period in the previous year, the firm earned $3.03 EPS. Atmos Energy has set its FY 2026 guidance at 8.400-8.500 EPS. Analysts forecast that Atmos Energy will post 8.44 EPS for the current year.

Institutional Investors Weigh In On Atmos Energy

Hedge funds have recently added to or reduced their stakes in the business. Compound Planning Inc. increased its holdings in Atmos Energy by 3.6% during the 4th quarter. Compound Planning Inc. now owns 1,654 shares of the utilities provider's stock worth $277,000 after purchasing an additional 58 shares in the last quarter. Checchi Capital Advisers LLC lifted its holdings in shares of Atmos Energy by 3.9% in the fourth quarter. Checchi Capital Advisers LLC now owns 1,579 shares of the utilities provider's stock valued at $265,000 after purchasing an additional 60 shares in the last quarter. MGO One Seven LLC lifted its holdings in shares of Atmos Energy by 4.3% in the fourth quarter. MGO One Seven LLC now owns 1,514 shares of the utilities provider's stock valued at $254,000 after purchasing an additional 62 shares in the last quarter. Wealthfront Advisers LLC boosted its position in shares of Atmos Energy by 0.8% during the first quarter. Wealthfront Advisers LLC now owns 8,153 shares of the utilities provider's stock valued at $1,506,000 after buying an additional 65 shares during the last quarter. Finally, Root Financial Partners LLC boosted its position in shares of Atmos Energy by 39.1% during the first quarter. Root Financial Partners LLC now owns 235 shares of the utilities provider's stock valued at $43,000 after buying an additional 66 shares during the last quarter. 90.17% of the stock is currently owned by institutional investors.

About Atmos Energy

Atmos Energy Corporation NYSE: ATO is a U.S.-based natural-gas utility that primarily focuses on the regulated distribution of natural gas. Headquartered in Dallas, Texas, the company operates through local distribution systems to deliver natural gas to residential, commercial, industrial and electric generation customers. Atmos's core activities include pipeline operations, gas distribution, system maintenance and reliability programs designed to ensure safe and continuous service to its customers.

The company's services encompass gas delivery, system integrity and maintenance, storage and transmission connections, and customer-facing programs such as billing, conservation initiatives and energy-efficiency offerings.

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