Atmos Energy Corporation (ATO)

Atmos Energy's stock price has increased by 6.86% in the past six months and 11.52% year-to-date. Strong earnings reports have been a key driver, with the company reporting earnings per diluted share of $3.03 for the fiscal second quarter ended March 31, 2025, and $2.23 for the first fiscal quarter ended December 31, 2024. The company raised its fiscal 2025 earnings per diluted share guidance to $7.20-$7.30 and increased its quarterly dividend to $0.87 per common share, representing an 8.1% increase over fiscal 2024. Insider trading activity in the past six months has shown one purchase and no sales. Institutional investors have shown varied activity, with some adding shares and others decreasing their positions.

Demand for Atmos Energy's products and services exhibits clear seasonality, with earnings significantly impacted by heating demand. The September to March timeframe represents the largest seasonal usage of natural gas, generating a substantial portion, upwards of 70% to 75%, of Atmos Energy's full fiscal year earnings. The pipeline and storage segment is also influenced by seasonal weather patterns.

Atmos Energy Corp. is a natural gas-only distributor in the United States, operating as a regulated utility. Its core business involves the distribution and marketing of natural gas to residential, commercial, public authority, and industrial clients. The company manages natural gas pipeline and storage assets, including a large intrastate pipeline system in Texas, and operates within the Utilities sector, specifically in the Regulated Gas or Natural Gas Utilities industry.

Atmos Energy operates across eight states, serving over 3 million customers in more than 1,400 communities. It has a significant presence in Texas, which accounts for approximately 67% of its service territory and a substantial portion of its earnings. Its operations extend from the Blue Ridge Mountains to the Rocky Mountains, with regulated utility activities in Colorado, Kansas, Kentucky, Louisiana, Mississippi, Tennessee, Texas, and Virginia.

Atmos Energy has received positive recognition for its workplace culture, being named on Forbes' "America's Best Employers" list for the fifth consecutive year. However, the company's brand reputation has been impacted by safety concerns and past incidents, including a home explosion and fire in Jackson, Mississippi, in January 2024, and earlier incidents such as a 2018 pipeline rupture in North Dallas and a 2021 pipeline explosion near Farmersville. These events have led to concerns about the company's safety practices and aging infrastructure, resulting in lawsuits and eroding public trust.

Atmos Energy's ownership is primarily dominated by institutional investors, who collectively hold approximately 64.97% to 98.37% of the company's stock. Individual investors and the general public hold around 34.68%. Insider ownership is relatively small, at approximately 0.35% to 2.60%. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., Wellington Management Group Llp, State Street Corp, Capital International Investors, and Price T Rowe Associates Inc /md/. Vanguard Group Inc. is the largest individual shareholder, owning 13.09% of the company's shares.