Atmos Energy (NYSE:ATO) Reaches New 1-Year Low - Here's What Happened

Key Points

• Atmos Energy shares fell to a new 52-week low of $155, trading below both their 50-day ($169.43) and 200-day ($176.01) moving averages.
• Analysts have broadly reduced their price targets, with a consensus “Hold” rating and average target of $185.09; three analysts rate the stock Buy while ten recommend Hold.
• The company exceeded quarterly EPS expectations ($1.43 versus $1.35) and maintains a quarterly dividend of $1.00, or $4.00 annually, yielding approximately 2.6%.

Shares of Atmos Energy Corporation (NYSE:ATO - Get Free Report) hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $155.00 and last traded at $156.1780, with a volume of 1060377 shares changing hands. The stock had previously closed at $157.34.

Analyst Upgrades and Downgrades

ATO has been the topic of several recent research reports. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $180.00 target price (down from $198.00) on shares of Atmos Energy in a research report on Friday, September 11th. Morgan Stanley dropped their price target on shares of Atmos Energy from $190.00 to $179.00 and set an "equal weight" rating for the company in a research report on Friday, September 18th. Barclays cut 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. Argus decreased their price objective 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, 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 note on Friday, May 29th. Three research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. Based on data from MarketBeat, Atmos Energy has a consensus rating of "Hold" and a consensus price target of $185.09.

Atmos Energy Price Performance

The company has a debt-to-equity ratio of 0.64, a current ratio of 0.81 and a quick ratio of 0.73. The firm has a market capitalization of $26.39 billion, a P/E ratio of 18.57, a PEG ratio of 2.72 and a beta of 0.60. The company's 50 day moving average price is $169.43 and its 200 day moving average price is $176.01.

Atmos Energy (NYSE:ATO - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The utilities provider reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.35 by $0.08. Atmos Energy had a net margin of 28.50% and a return on equity of 9.67%. The firm had revenue of $879.06 million during the quarter, compared to analysts' expectations 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. As a group, sell-side analysts anticipate that Atmos Energy Corporation will post 8.46 EPS for the current fiscal year.

Atmos Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 24th were given a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Monday, August 24th. Atmos Energy's dividend payout ratio (DPR) is presently 47.56%.

Insiders Place Their Bets

In other Atmos Energy news, Director William Ware bought 300 shares of the business's stock in a transaction on Tuesday, August 11th. The shares were bought at an average cost of $167.59 per share, for a total transaction of $50,277.00. Following the transaction, the director owned 488 shares in the company, valued at approximately $81,783.92. This trade represents a 159.57% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new position in Atmos Energy in the second quarter valued at approximately $2,624,975,000. Capital International Investors boosted its position in shares of Atmos Energy by 8.5% in the 4th quarter. Capital International Investors now owns 11,893,826 shares of the utilities provider's stock worth $1,993,968,000 after purchasing an additional 927,986 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Atmos Energy by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 4,214,985 shares of the utilities provider's stock worth $703,824,000 after purchasing an additional 78,438 shares during the last quarter. Bank of America Corp DE grew its stake in shares of Atmos Energy by 11.0% during the first quarter. Bank of America Corp DE now owns 4,199,433 shares of the utilities provider's stock worth $775,719,000 after purchasing an additional 416,933 shares during the period. Finally, Deutsche Bank AG grew its stake in shares of Atmos Energy by 1.7% during the fourth 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 during the period. Institutional investors own 90.17% of the company's stock.

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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