ONE Gas, Inc. (NYSE:OGS) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• ONE Gas has a consensus analyst rating of “Moderate Buy” from 11 firms, with an average 1-year price target of $89.90. Recent calls were mixed, including both price-target cuts and an underweight rating from Wells Fargo.
• The company reported weaker-than-expected quarterly results, posting EPS of $2.11 versus estimates of $2.13 and revenue of $831.71 million versus expectations of $969.36 million. Revenue also fell 11.1% from the same quarter last year.
• ONE Gas recently paid a quarterly dividend of $0.68 per share, equating to an annualized yield of about 3.5%. The company’s dividend payout ratio stands at 61.4%.

ONE Gas, Inc. (NYSE:OGS - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eleven ratings firms that are covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation, five have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $89.90.

A number of brokerages have recently weighed in on OGS. Capital One Financial set a $93.00 price target on ONE Gas in a research report on Friday, June 12th. Wells Fargo & Company began coverage on shares of ONE Gas in a research note on Monday, May 11th. They issued an "underweight" rating and a $85.00 price objective on the stock. Truist Financial dropped their target price on shares of ONE Gas from $99.00 to $95.00 and set a "buy" rating for the company in a report on Monday, May 18th. Mizuho dropped their target price on shares of ONE Gas from $94.00 to $89.00 and set an "outperform" rating for the company in a report on Tuesday, June 9th. Finally, Wall Street Zen cut shares of ONE Gas from a "hold" rating to a "sell" rating in a research report on Saturday, May 16th.

Institutional Investors Weigh In On ONE Gas

A number of institutional investors and hedge funds have recently bought and sold shares of OGS. Alliancebernstein L.P. increased its position in ONE Gas by 6.9% during the third quarter. Alliancebernstein L.P. now owns 1,707,792 shares of the utilities provider's stock worth $138,229,000 after buying an additional 110,305 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of ONE Gas by 37.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,398,440 shares of the utilities provider's stock valued at $108,029,000 after acquiring an additional 380,668 shares in the last quarter. Energy Income Partners LLC boosted its stake in shares of ONE Gas by 1.1% during the first quarter. Energy Income Partners LLC now owns 1,331,076 shares of the utilities provider's stock valued at $114,646,000 after acquiring an additional 14,085 shares during the last quarter. Boston Trust Walden Corp boosted its stake in shares of ONE Gas by 5.3% during the fourth quarter. Boston Trust Walden Corp now owns 1,103,732 shares of the utilities provider's stock valued at $85,263,000 after acquiring an additional 55,507 shares during the last quarter. Finally, Morgan Stanley increased its position in ONE Gas by 28.2% during the 4th quarter. Morgan Stanley now owns 992,430 shares of the utilities provider's stock worth $76,665,000 after purchasing an additional 218,571 shares in the last quarter. Hedge funds and other institutional investors own 88.71% of the company's stock.

ONE Gas Stock Performance

OGS opened at $78.24 on Thursday. The stock has a market cap of $4.91 billion, a P/E ratio of 17.66, a P/E/G ratio of 2.65 and a beta of 0.66. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.57 and a quick ratio of 0.48. The stock's 50 day simple moving average is $80.14 and its 200 day simple moving average is $82.31. ONE Gas has a 1-year low of $71.71 and a 1-year high of $90.78.

ONE Gas (NYSE:OGS - Get Free Report) last issued its quarterly earnings data on Monday, May 4th. The utilities provider reported $2.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.13 by ($0.02). The firm had revenue of $831.71 million for the quarter, compared to analyst estimates of $969.36 million. ONE Gas had a return on equity of 8.45% and a net margin of 11.77%.The business's revenue for the quarter was down 11.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.99 earnings per share. ONE Gas has set its FY 2026 guidance at 4.830-4.950 EPS. As a group, equities analysts anticipate that ONE Gas will post 4.72 EPS for the current fiscal year.

ONE Gas Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Monday, May 18th were paid a dividend of $0.68 per share. This represents a $2.72 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend was Monday, May 18th. ONE Gas's dividend payout ratio (DPR) is 61.40%.

About ONE Gas

ONE Gas, Inc is a publicly traded natural gas utility company focused on the regulated distribution of natural gas to residential, commercial and industrial customers. Headquartered in Tulsa, Oklahoma, the company owns and operates an integrated system of transmission and distribution pipelines, storage facilities and compressor stations designed to deliver safe, reliable energy to end users. Its operations are governed by state utility commissions, which set rates and service standards in the markets the company serves.

The company's service territory spans three states: Oklahoma, Kansas and the Texas Panhandle.

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