Atmos Energy (NYSE:ATO) Earns Neutral Rating from UBS Group

Key Points

• UBS Group raised the price target for Atmos Energy from $146.00 to $159.00, indicating a potential upside of 1.33% from the last closing price.
• The company's stock has an average rating of "Moderate Buy", with seven analysts rating it as hold and four issuing buy ratings.
• Atmos Energy reported quarterly earnings of $3.03 EPS, exceeding analysts' expectations of $2.92 and reflecting an 18.4% year-over-year revenue increase.

UBS Group reissued their neutral rating on shares of Atmos Energy (NYSE:ATO - Free Report) in a research report released on Wednesday, Marketbeat Ratings reports. They currently have a $159.00 price objective on the utilities provider's stock, up from their prior price objective of $146.00.

Several other equities analysts also recently commented on ATO. Mizuho downgraded shares of Atmos Energy from an "outperform" rating to a "neutral" rating and lowered their price objective for the company from $165.00 to $164.00 in a research note on Monday, April 28th. LADENBURG THALM/SH SH raised shares of Atmos Energy to a "strong-buy" rating in a research note on Friday, May 9th. Morgan Stanley set a $156.00 target price on shares of Atmos Energy and gave the company an "overweight" rating in a research note on Wednesday, June 18th. Barclays cut 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 note on Thursday, July 10th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Atmos Energy from $164.00 to $166.00 and gave the company an "overweight" rating in a research report on Wednesday, April 16th. Seven research analysts have rated the stock with a hold rating, four have assigned a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, Atmos Energy has a consensus rating of "Moderate Buy" and an average target price of $157.14.

Atmos Energy Price Performance

NYSE ATO traded down $0.02 during trading on Wednesday, reaching $155.90. The company's stock had a trading volume of 150,258 shares, compared to its average volume of 962,682. The stock has a market capitalization of $24.76 billion, a PE ratio of 21.66, a P/E/G ratio of 2.94 and a beta of 0.70. Atmos Energy has a one year low of $126.08 and a one year high of $167.45. The firm has a fifty day moving average of $154.33 and a 200 day moving average of $151.88. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.33 and a quick ratio of 1.25.

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

Atmos Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 9th. Investors of record on Tuesday, May 27th were issued a dividend of $0.87 per share. The ex-dividend date of this dividend was Tuesday, May 27th. This represents a $3.48 dividend on an annualized basis and a yield of 2.2%. Atmos Energy's payout ratio is currently 48.33%.

Insider Buying and Selling

In related news, Director Kim R. Cocklin sold 15,000 shares of the business's stock in a transaction dated 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 sale, the director owned 172,632 shares of the company's stock, valued at approximately $26,063,979.36. The trade was a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.48% of the company's stock.

Hedge Funds Weigh In On Atmos Energy

Several hedge funds have recently added to or reduced their stakes in the business. First Horizon Advisors Inc. raised its holdings in shares of Atmos Energy by 191.2% in the 1st quarter. First Horizon Advisors Inc. now owns 166 shares of the utilities provider's stock worth $26,000 after purchasing an additional 109 shares during the period. Brooklyn Investment Group lifted its position in shares of Atmos Energy by 141.2% during the first quarter. Brooklyn Investment Group now owns 234 shares of the utilities provider's stock worth $36,000 after purchasing an additional 137 shares during the last quarter. Cary Street Partners Financial LLC bought a new position in shares of Atmos Energy during the fourth quarter worth about $37,000. ST Germain D J Co. Inc. grew its position in shares of Atmos Energy by 50.0% during the 2nd quarter. ST Germain D J Co. Inc. now owns 300 shares of the utilities provider's stock valued at $46,000 after buying an additional 100 shares during the last quarter. Finally, Golden State Wealth Management LLC grew its position in shares of Atmos Energy by 379.7% during the 1st quarter. Golden State Wealth Management LLC now owns 331 shares of the utilities provider's stock valued at $51,000 after buying an additional 262 shares during the last quarter. 90.17% of the stock is currently owned by hedge funds and other institutional investors.

About Atmos Energy

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.