Atmos Energy (NYSE:ATO) Reaches New 52-Week High - Still a Buy?

Key Points

• Atmos Energy's stock reached a new 52-week high at $171.20, reflecting strong trading activity with 866,714 shares exchanged.
• The company recently announced a quarterly dividend of $0.87 per share, resulting in an annual yield of 2.0% and a payout ratio of 47.80%.
• Analysts have a consensus rating of "Moderate Buy" for Atmos Energy, with an average target price of $161.82.

Shares of Atmos Energy Corporation (NYSE:ATO - Get Free Report) reached a new 52-week high on Wednesday . The stock traded as high as $171.20 and last traded at $170.79, with a volume of 866714 shares changing hands. The stock had previously closed at $169.55.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on ATO. LADENBURG THALM/SH SH reiterated a "neutral" rating and issued a $163.00 price objective (down from $171.00) on shares of Atmos Energy in a research note on Friday, August 8th. Barclays lowered their price objective 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. Argus set a $172.00 price objective on Atmos Energy in a research note on Thursday, September 18th. Wall Street Zen upgraded Atmos Energy from a "sell" rating to a "hold" rating in a research note on Sunday, August 17th. Finally, Morgan Stanley upped their price objective on Atmos Energy from $162.00 to $167.00 and gave the company an "overweight" rating in a research note on Thursday, September 25th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $161.82.

Atmos Energy Stock Up 0.7%

The firm has a market capitalization of $27.42 billion, a price-to-earnings ratio of 23.46, a P/E/G ratio of 3.14 and a beta of 0.75. The company has a current ratio of 1.37, a quick ratio of 1.25 and a debt-to-equity ratio of 0.67. The firm has a fifty day moving average price of $163.65 and a 200 day moving average price of $157.67.

Atmos Energy (NYSE:ATO - Get Free Report) last announced its earnings results on Wednesday, August 6th. The utilities provider reported $1.16 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 previous year, the firm earned $1.08 earnings per share. Sell-side analysts anticipate that Atmos Energy Corporation will post 7.18 EPS for the current fiscal year.

Atmos Energy Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 25th were issued a dividend of $0.87 per share. The ex-dividend date of this dividend was Monday, August 25th. This represents a $3.48 annualized dividend and a yield of 2.0%. Atmos Energy's dividend payout ratio is currently 47.80%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in Atmos Energy by 2.1% during the 1st 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 in the last quarter. Geode Capital Management LLC lifted its holdings in Atmos Energy by 1.6% during the 2nd quarter. Geode Capital Management LLC now owns 4,073,886 shares of the utilities provider's stock worth $625,180,000 after buying an additional 63,166 shares in the last quarter. Bank of America Corp DE lifted its holdings in Atmos Energy by 94.9% during the 2nd quarter. Bank of America Corp DE now owns 3,652,267 shares of the utilities provider's stock worth $562,851,000 after buying an additional 1,778,653 shares in the last quarter. Invesco Ltd. lifted its holdings in Atmos Energy by 3.1% during the 2nd quarter. Invesco Ltd. now owns 3,082,338 shares of the utilities provider's stock worth $475,019,000 after buying an additional 91,254 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its holdings in Atmos Energy by 23.6% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 1,899,283 shares of the utilities provider's stock worth $292,699,000 after buying an additional 362,894 shares in the last quarter. Institutional investors and hedge funds own 90.17% of the company's stock.

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.

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