Atmos Energy (NYSE:ATO) Reaches New 1-Year Low After Analyst Downgrade

Key Points

• Atmos Energy shares fell to a new 52-week low of $160 after Morgan Stanley cut its price target from $190 to $179 while maintaining an equal-weight rating.
• Analyst sentiment remains cautious: the stock carries an overall “Hold” consensus, with three Buy ratings and ten Holds, and an average price target of $185.09.
• Despite the share-price weakness, Atmos Energy exceeded quarterly EPS estimates, maintained fiscal 2026 guidance of $8.40–$8.50 per share, and pays an annualized dividend of $4.00 per share, yielding about 2.5%.

Shares of Atmos Energy Corporation (NYSE:ATO - Get Free Report) hit a new 52-week low during trading on Friday after Morgan Stanley lowered their price target on the stock from $190.00 to $179.00. Morgan Stanley currently has an equal weight rating on the stock. Atmos Energy traded as low as $160.00 and last traded at $160.1730, with a volume of 240552 shares. The stock had previously closed at $162.03.

ATO has been the topic of several other research reports. Weiss Ratings reissued a "buy (b)" rating on shares of Atmos Energy in a research note on Friday, August 28th. Mizuho cut their target price on Atmos Energy from $192.00 to $184.00 and set a "neutral" rating on the stock in a research note on Friday, May 29th. Truist Financial reduced 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. Wall Street Zen cut shares of Atmos Energy from a "hold" rating to a "sell" rating in a research note on Monday, August 3rd. Finally, Barclays decreased their price target on shares of Atmos Energy from $184.00 to $183.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 14th. Three equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $185.09.

Insider Transactions at Atmos Energy

In other Atmos Energy news, Director William Ware bought 300 shares of the firm's stock in a transaction on Tuesday, August 11th. The shares were purchased at an average price of $167.59 per share, for a total transaction of $50,277.00. Following the completion of the transaction, the director directly owned 488 shares in the company, valued at approximately $81,783.92. The trade was a 159.57% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.43% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Atmos Energy

Hedge funds have recently made changes to their positions in the stock. Anchor Investment Management LLC grew its holdings in shares of Atmos Energy by 176.7% during the 2nd quarter. Anchor Investment Management LLC now owns 22,612 shares of the utilities provider's stock valued at $3,895,000 after purchasing an additional 14,440 shares during the last quarter. Tidal Investments LLC lifted its stake in Atmos Energy by 163.5% in the 2nd quarter. Tidal Investments LLC now owns 42,632 shares of the utilities provider's stock valued at $7,344,000 after purchasing an additional 26,454 shares during the last quarter. National Pension Service boosted its position in Atmos Energy by 2.4% in the second quarter. National Pension Service now owns 250,465 shares of the utilities provider's stock valued at $43,148,000 after buying an additional 5,778 shares in the last quarter. Engineers Gate Manager LP acquired a new stake in Atmos Energy in the second quarter valued at approximately $13,458,000. Finally, NewEdge Advisors LLC grew its stake in shares of Atmos Energy by 62.7% during the second quarter. NewEdge Advisors LLC now owns 15,376 shares of the utilities provider's stock worth $2,649,000 after buying an additional 5,924 shares during the last quarter. 90.17% of the stock is currently owned by institutional investors and hedge funds.

Atmos Energy Stock Down 1.1%

The company has a market capitalization of $27.09 billion, a P/E ratio of 19.09, a PEG ratio of 2.80 and a beta of 0.60. The company has a current ratio of 0.81, a quick ratio of 0.73 and a debt-to-equity ratio of 0.64. The stock has a 50 day moving average price of $170.96 and a 200 day moving average price of $176.80.

Atmos Energy (NYSE:ATO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The utilities provider reported $1.43 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $900.82 million. During the same quarter in the previous year, the company posted $1.16 EPS. Atmos Energy has set its FY 2026 guidance at 8.400-8.500 EPS. On average, research analysts anticipate that Atmos Energy Corporation will post 8.46 earnings per share for the current fiscal year.

Atmos Energy Announces Dividend

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

Atmos Energy Company 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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