Atlas Energy Solutions (NYSE:AESI) Stock Price Down 11.8% After Analyst Downgrade

Key Points

• Atlas Energy Solutions shares fell 11.8% to $7.18 after Piper Sandler cut its price target from $15 to $13, maintaining a neutral rating.
• Third-quarter revenue rose 3.1% year over year to $267.8 million, slightly beating estimates, but the company’s $0.36-per-share loss was worse than the expected $0.24 loss.
• Analysts’ consensus rating is Hold, with an average price target of $16.50. Management expects fourth-quarter adjusted EBITDA of $40 million to $50 million and is targeting late-2027 first power from two data-center projects.

Atlas Energy Solutions Inc. (NYSE:AESI - Get Free Report)'s stock price dropped 11.8% during trading on Wednesday after Piper Sandler lowered their price target on the stock from $15.00 to $13.00. Piper Sandler currently has a neutral rating on the stock. Atlas Energy Solutions traded as low as $7.16 and last traded at $7.18. Approximately 1,285,803 shares were traded during mid-day trading, a decline of 64% from the average daily volume of 3,597,605 shares. The stock had previously closed at $8.14.

Other equities analysts have also issued reports about the stock. Citigroup lowered their price objective on shares of Atlas Energy Solutions from $21.00 to $17.00 and set a "buy" rating on the stock in a research report on Thursday, September 3rd. Stifel Nicolaus lowered their price objective on Atlas Energy Solutions from $28.00 to $25.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Weiss Ratings cut Atlas Energy Solutions from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, August 7th. Zacks Research downgraded Atlas Energy Solutions from a "hold" rating to a "strong sell" rating in a research note on Tuesday, October 20th. Finally, Glj Research initiated coverage on Atlas Energy Solutions in a research note on Wednesday, October 28th. They set a "buy" rating and a $13.00 target price for the company. Six investment analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, Atlas Energy Solutions currently has a consensus rating of "Hold" and a consensus target price of $16.50.

Atlas Energy Solutions News Roundup

Here are the key news stories impacting Atlas Energy Solutions this week:

• Positive Sentiment: Third-quarter revenue was $267.8 million, slightly above estimates, and increased 3.1% year over year. Atlas also generated $23.4 million in operating cash flow and $25.3 million in adjusted free cash flow. Third-quarter results
• Positive Sentiment: Management outlined a fourth-quarter adjusted EBITDA range of $40 million to $50 million and is targeting first power from two data-center projects in late 2027, offering potential longer-term growth beyond its core business. Q4 outlook and data-center projects
• Neutral Sentiment: Despite lowering their targets, Piper Sandler and RBC retained neutral/sector-perform ratings and set $13 targets—well above the share price cited in the reports. The cuts signal more cautious expectations, while the gap to those targets suggests analysts see potential upside. Piper Sandler ratings RBC ratings
• Negative Sentiment: Atlas reported a third-quarter loss of $0.36 per share, worse than analysts’ expected loss of $0.24, and wider than the year-ago loss of $0.19. The earnings shortfall and continued margin pressure are likely weighing on sentiment. Q3 earnings report

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP boosted its holdings in shares of Atlas Energy Solutions by 12.6% during the first quarter. Dimensional Fund Advisors LP now owns 1,502,480 shares of the company's stock worth $19,713,000 after purchasing an additional 167,758 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Atlas Energy Solutions in the second quarter valued at $7,765,000. Encompass Capital Advisors LLC acquired a new position in Atlas Energy Solutions in the first quarter valued at $119,854,000. Readystate Asset Management LP acquired a new position in Atlas Energy Solutions in the first quarter valued at $1,459,000. Finally, Assenagon Asset Management S.A. purchased a new position in Atlas Energy Solutions during the second quarter worth about $3,502,000. 34.59% of the stock is currently owned by hedge funds and other institutional investors.

Atlas Energy Solutions Price Performance

The company has a 50-day moving average of $11.68 and a two-hundred day moving average of $13.34. The stock has a market capitalization of $844 million, a PE ratio of -5.96 and a beta of 1.29. The company has a debt-to-equity ratio of 0.87, a current ratio of 1.82 and a quick ratio of 1.58.

Atlas Energy Solutions (NYSE:AESI - Get Free Report) last posted its quarterly earnings results on Monday, November 2nd. The company reported ($0.36) EPS for the quarter, missing the consensus estimate of ($0.24) by ($0.12). The business had revenue of $267.78 million during the quarter, compared to analysts' expectations of $265.32 million. Atlas Energy Solutions had a negative net margin of 12.98% and a negative return on equity of 12.15%. The firm's quarterly revenue was up 3.1% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.19) EPS. Sell-side analysts predict that Atlas Energy Solutions Inc. will post -0.95 EPS for the current fiscal year.

Atlas Energy Solutions Company Profile

Atlas Energy Solutions Inc NYSE: AESI is an energy-services company that supplies proppant and logistics solutions to oil and natural gas producers. Its primary products include frac sand, which is used in hydraulic fracturing to help keep underground rock fractures open and improve the flow of hydrocarbons.

The company operates sand mines, processing facilities, and related infrastructure in the Permian Basin of West Texas. In addition to producing and selling proppant, Atlas provides transportation, storage, and last-mile delivery services designed to move sand from its facilities to well sites.

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