Morgan Stanley Cuts ONE Gas (NYSE:OGS) Price Target to $66.00

Key Points

• Morgan Stanley has lowered its price target for ONE Gas from $71.00 to $66.00, indicating a potential downside of 15.69% from its current price.
• ONE Gas reported a quarterly earnings per share (EPS) of $0.53, meeting analysts' expectations, with revenue of $423.7 million, slightly below estimates.
• Hedge funds have increased their positions in ONE Gas significantly, with 88.71% of the stock owned by institutional investors as of the latest quarter.

ONE Gas (NYSE:OGS - Get Free Report) had its target price lowered by analysts at Morgan Stanley from $71.00 to $66.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the utilities provider's stock. Morgan Stanley's price objective suggests a potential downside of 15.69% from the stock's current price.

ONE Gas Stock Performance

Shares of OGS stock traded up $0.01 during trading on Thursday, reaching $78.28. 268,092 shares of the company's stock traded hands, compared to its average volume of 509,840. The company has a market capitalization of $4.70 billion, a P/E ratio of 18.69, a PEG ratio of 3.21 and a beta of 0.85. The company has a current ratio of 0.52, a quick ratio of 0.42 and a debt-to-equity ratio of 0.74. The firm's 50-day moving average is $74.96 and its 200 day moving average is $74.69. ONE Gas has a 1 year low of $66.38 and a 1 year high of $82.25.

ONE Gas (NYSE:OGS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The utilities provider reported $0.53 EPS for the quarter, meeting analysts' consensus estimates of $0.53. The company had revenue of $423.70 million for the quarter, compared to analysts' expectations of $432.69 million. ONE Gas had a net margin of 10.63% and a return on equity of 8.07%. ONE Gas's revenue was up 19.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.48 EPS. ONE Gas has set its FY 2025 guidance at 4.320-4.420 EPS. Equities research analysts expect that ONE Gas will post 4.26 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. KBC Group NV grew its position in shares of ONE Gas by 21.6% during the 1st quarter. KBC Group NV now owns 2,697 shares of the utilities provider's stock valued at $204,000 after purchasing an additional 479 shares in the last quarter. Teacher Retirement System of Texas grew its position in shares of ONE Gas by 369.2% during the 1st quarter. Teacher Retirement System of Texas now owns 20,172 shares of the utilities provider's stock valued at $1,525,000 after purchasing an additional 15,873 shares in the last quarter. GAMMA Investing LLC grew its position in shares of ONE Gas by 102.7% during the 1st quarter. GAMMA Investing LLC now owns 1,346 shares of the utilities provider's stock valued at $102,000 after purchasing an additional 682 shares in the last quarter. Advisors Capital Management LLC purchased a new position in shares of ONE Gas during the 1st quarter valued at $562,000. Finally, AQR Capital Management LLC grew its position in shares of ONE Gas by 21.2% during the 1st quarter. AQR Capital Management LLC now owns 70,834 shares of the utilities provider's stock valued at $5,354,000 after purchasing an additional 12,392 shares in the last quarter. 88.71% of the stock is currently owned by hedge funds and other institutional investors.

About ONE Gas

ONE Gas, Inc, together with its subsidiaries, operates as a regulated natural gas distribution company in the United States. The company provides natural gas distribution services to approximately 2.3 million customers in Oklahoma, Kansas, and Texas. It serves residential, commercial, and transportation customers.

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