Atmos Energy Corporation (ATO)

Over the past six months, Atmos Energy's stock has increased by 10.21%, contributing to a 24.62% rise over the last 12 months, outperforming both the S&P 500 Index and the Utilities Select Sector SPDR Fund over the past 52 weeks. Key events include the Q3 2025 earnings report where Atmos Energy reported EPS of $1.16, slightly missing estimates, but the stock rose due to increased fiscal 2025 guidance. Analysts have issued varied price targets, with Mizuho maintaining a 'Neutral' rating while raising its price target, B of A Securities downgrading ATO to 'Neutral' but raising its price target, and Morgan Stanley reaffirming its 'Overweight' rating and increasing its price target. Paradiem, LLC disclosed a new position in Atmos Energy, acquiring 86,407 shares. A sudden cold snap in late October 2025 is expected to ignite the natural gas market, potentially leading to short-term margin compression, and the Dow Jones Industrial Average reaching a new record high might see utility companies like Atmos Energy underperform compared to higher-growth sectors.

Demand for Atmos Energy's products and services is highly seasonal, primarily driven by heating requirements. The company generates over two-thirds of its earnings during the winter quarters, specifically fiscal Q1 and Q2, with fiscal Q2 being the most important. Pipeline earnings are more stable throughout the year, as natural gas production is less seasonal than consumer usage.

Atmos Energy Corporation is a leading regulated natural gas utility in the United States, engaged in natural gas distribution, pipeline, and storage businesses. The company operates within the Utilities sector, specifically the Regulated Gas industry, selling natural gas to various customers and providing transmission and storage services. Atmos Energy's business model is based on providing essential utility services and maintaining a stable customer base.

Atmos Energy serves approximately 3 million customers across eight U.S. states, including Texas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, and Virginia. Approximately two-thirds of the company's earnings are generated from its operations in Texas, where it distributes natural gas and owns an intrastate gas pipeline system with interconnected storage facilities.

Atmos Energy maintains a positive brand reputation, reflected in its 'buy (B+)' rating from Weiss Ratings as of October 25, 2025. The company is recognized for its stability and has a long-standing track record of 38 consecutive years of dividend growth, positioning it as a potential 'Dividend King' in the future. Its reputation is further bolstered by its focus on expanding and modernizing infrastructure, enhancing safety measures, and consistently returning cash to shareholders through dividends.

Institutional investors hold a significant majority of Atmos Energy's shares, owning over 50%, with some reports indicating as high as 83.8% or 85.42%. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., Wellington Management Group Llp, Capital International Investors, State Street Corp, Price T Rowe Associates Inc /md/, and Aristotle Capital Management, LLC. Individual ownership is under 1%, while the general public holds a 13% stake.