StockNews.com Lowers Atmos Energy (NYSE:ATO) to Sell

StockNews.com downgraded shares of Atmos Energy (NYSE:ATO) from a hold rating to a sell rating in a research report sent to investors on Friday morning.

Other equities research analysts have also issued research reports about the company. LADENBURG THALM/SH SH lifted their price objective on Atmos Energy from $144.00 to $150.50 and gave the stock a “buy” rating in a report on Wednesday, October 2nd. JPMorgan Chase & Co. boosted their price target on shares of Atmos Energy from $134.00 to $144.00 and gave the company an “overweight” rating in a research report on Thursday, August 15th. Jefferies Financial Group began coverage on shares of Atmos Energy in a report on Wednesday, October 2nd. They issued a “hold” rating and a $155.00 price objective for the company. Barclays increased their target price on Atmos Energy from $129.00 to $144.00 and gave the stock an “equal weight” rating in a research report on Monday, October 7th. Finally, Morgan Stanley boosted their price objective on Atmos Energy from $128.00 to $140.00 and gave the company an “overweight” rating in a research note on Wednesday, September 25th. One analyst has rated the stock with a sell rating, three have given a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $143.94.

Atmos Energy Price Performance

Shares of NYSE:ATO opened at $142.21 on Friday. Atmos Energy has a fifty-two week low of $105.44 and a fifty-two week high of $144.32. The company’s 50-day moving average is $135.19 and its 200 day moving average is $124.47. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.57 and a current ratio of 1.73. The company has a market capitalization of $21.46 billion, a P/E ratio of 21.32, a price-to-earnings-growth ratio of 2.76 and a beta of 0.68.

Atmos Energy (NYSE:ATO) last released its earnings results on Wednesday, August 7th. The utilities provider reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.05 by $0.03. Atmos Energy had a net margin of 25.09% and a return on equity of 8.94%. The firm had revenue of $701.55 million during the quarter, compared to the consensus estimate of $924.75 million. During the same period in the prior year, the firm earned $0.94 EPS. On average, equities research analysts forecast that Atmos Energy will post 6.79 earnings per share for the current year.

Atmos Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, September 9th. Investors of record on Monday, August 26th were given a dividend of $0.805 per share. This represents a $3.22 annualized dividend and a yield of 2.26%. The ex-dividend date of this dividend was Monday, August 26th. Atmos Energy’s payout ratio is 48.28%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Farmers & Merchants Investments Inc. lifted its position in Atmos Energy by 200.0% during the first quarter. Farmers & Merchants Investments Inc. now owns 288 shares of the utilities provider’s stock valued at $34,000 after purchasing an additional 192 shares during the last quarter. Innealta Capital LLC purchased a new stake in shares of Atmos Energy during the 2nd quarter valued at $37,000. Janiczek Wealth Management LLC lifted its holdings in shares of Atmos Energy by 467.0% during the 1st quarter. Janiczek Wealth Management LLC now owns 618 shares of the utilities provider’s stock worth $73,000 after acquiring an additional 509 shares during the last quarter. GAMMA Investing LLC grew its position in Atmos Energy by 75.6% in the second quarter. GAMMA Investing LLC now owns 778 shares of the utilities provider’s stock worth $91,000 after acquiring an additional 335 shares in the last quarter. Finally, Covestor Ltd increased its stake in Atmos Energy by 248.5% in the first quarter. Covestor Ltd now owns 805 shares of the utilities provider’s stock valued at $96,000 after acquiring an additional 574 shares during the last quarter. Hedge funds and other institutional investors own 90.17% of the company’s stock.

About Atmos Energy

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States. It operates through two segments, Distribution, and Pipeline and Storage. The Distribution segment is involved in the regulated natural gas distribution and related sales operations in eight states.