Bank of America Corp DE Makes New $720.21 Million Investment in Atmos Energy Corporation $ATO

Key Points

• Bank of America acquired 4.18 million Atmos Energy shares worth approximately $720.2 million in the second quarter, giving it a 2.47% stake. Institutional investors collectively own 90.17% of the company.
• Atmos Energy exceeded quarterly earnings expectations, reporting $1.43 EPS versus the $1.35 consensus, while issuing fiscal 2026 guidance of $8.40–$8.50 EPS. The company also maintains a $1.00 quarterly dividend, yielding about 2.5% annually.
• ATO shares opened at $162.17, below their 50-day and 200-day moving averages. Analysts hold a broadly cautious view, with a consensus “Hold” rating and an average price target of $186.09.

Bank of America Corp DE acquired a new stake in Atmos Energy Corporation (NYSE:ATO - Free Report) in the second quarter, according to its most recent filing with the SEC. The fund acquired 4,180,718 shares of the utilities provider's stock, valued at approximately $720,212,000. Bank of America Corp DE owned approximately 2.47% of Atmos Energy at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in ATO. BlackRock Inc. bought a new position in Atmos Energy in the 2nd quarter worth about $2,624,975,000. Capital International Investors grew its stake in Atmos Energy by 8.5% during the fourth quarter. Capital International Investors now owns 11,893,826 shares of the utilities provider's stock valued at $1,993,968,000 after acquiring an additional 927,986 shares in the last quarter. Geode Capital Management LLC increased its holdings in Atmos Energy by 1.9% during the 4th quarter. Geode Capital Management LLC now owns 4,214,985 shares of the utilities provider's stock worth $703,824,000 after acquiring an additional 78,438 shares during the period. Deutsche Bank AG lifted its stake in Atmos Energy by 1.7% in the 4th quarter. Deutsche Bank AG now owns 2,887,367 shares of the utilities provider's stock worth $484,009,000 after purchasing an additional 47,860 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Atmos Energy during the 4th quarter valued at $331,426,000. Hedge funds and other institutional investors own 90.17% of the company's stock.

Insider Buying and Selling

In other Atmos Energy news, Director William Ware bought 300 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The shares were bought at an average price of $167.59 per share, for a total transaction of $50,277.00. Following the transaction, the director directly owned 488 shares in the company, valued at $81,783.92. This trade represents a 159.57% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.43% of the stock is currently owned by insiders.

Atmos Energy Stock Performance

Shares of NYSE ATO opened at $162.17 on Wednesday. The stock's 50-day moving average is $171.52 and its 200 day moving average is $177.13. The stock has a market cap of $27.41 billion, a price-to-earnings ratio of 19.28, a P/E/G ratio of 2.84 and a beta of 0.60. Atmos Energy Corporation has a 1-year low of $160.10 and a 1-year high of $192.51. The company has a current ratio of 0.81, a quick ratio of 0.73 and a debt-to-equity ratio of 0.64.

Atmos Energy (NYSE:ATO - Get Free Report) last issued its earnings results on Wednesday, August 5th. The utilities provider reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.35 by $0.08. Atmos Energy had a return on equity of 9.67% and a net margin of 28.50%.The business had revenue of $879.06 million during the quarter, compared to analyst estimates of $900.82 million. During the same quarter in the prior year, the firm earned $1.16 earnings per share. Atmos Energy has set its FY 2026 guidance at 8.400-8.500 EPS. On average, sell-side analysts anticipate that Atmos Energy Corporation will post 8.46 EPS for the current fiscal year.

Atmos Energy Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 24th were issued a dividend of $1.00 per share. The ex-dividend date of this dividend was Monday, August 24th. This represents a $4.00 annualized dividend and a dividend yield of 2.5%. Atmos Energy's dividend payout ratio (DPR) is currently 47.56%.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on ATO. Mizuho lowered their price objective on Atmos Energy from $192.00 to $184.00 and set a "neutral" rating on the stock in a research report on Friday, May 29th. Weiss Ratings restated a "buy (b)" rating on shares of Atmos Energy in a research report on Friday, August 28th. Wall Street Zen lowered Atmos Energy from a "hold" rating to a "sell" rating in a research note on Monday, August 3rd. Argus lowered their price target on Atmos Energy from $190.00 to $185.00 and set a "buy" rating on the stock in a report on Thursday, July 2nd. Finally, Truist Financial dropped their price target on Atmos Energy from $188.00 to $179.00 and set a "hold" rating for the company in a research report on Thursday, August 13th. Three analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat, Atmos Energy has a consensus rating of "Hold" and a consensus target price of $186.09.

Atmos Energy Profile

Atmos Energy Corporation NYSE: ATO is a regulated natural gas distribution and pipeline company headquartered in Dallas, Texas. Through its utility operations, the company delivers natural gas to residential, commercial, industrial and agricultural customers, with services focused on safe and reliable energy delivery.

Atmos Energy serves customers across eight states: Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, Texas and Virginia. Its operations include local natural gas distribution as well as pipeline transportation and storage activities, primarily through its Atmos Pipeline-Texas business.

The company traces its roots to 1906 and has expanded over time through growth and acquisitions in the natural gas industry.

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