Atmos Energy stock: buy or sell?

ATO stock price: $112.96 0.61% At close on September 20th, 2019

Updated on:
September 20th, 2019

5

After several days of continuous hikes in past weeks, Atmos Energy grew 0.61% to $112.96. Counting Friday, it's been 5 green days in a row, gaining $3.23 or 2.95%.

Atmos Energy Corporation, together with its subsidiaries, engages in the regulated natural gas distribution, and pipeline and storage businesses in the United States.

Should I buy Atmos Energy stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups are elegible for Atmos Energy stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Atmos Energy stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we detected 2 ratings published for ATO stock in the last month.

Is ATO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-16Morgan Stanleyn/aOverweight
2019-7-15Wells Fargo & Con/aOutperform

Atmos Energy stock analysis

Daily outlook

Atmos Energy shares grew 0.61% today and peaked a new all time high at $113.31.

Atmos Energy grew 0.61% today and set a new all time high at $113.31. On Sep/10 ATO price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

ATO stock chart (daily)

Weekly outlook

Atmos Energy escalated 2.94% this week and peaked a new all time high at $113.31.

Weekly chart tells us that price finally broke over the resistance at $111.90 and continued climbing. By mid January ATO price bounced up over the SMA of 20 weeks that acted as support stopping new slides.

ATO stock chart (weekly)

Atmos Energy stock price history

Atmos Energy stock went public on December 28th, 1983 with a price of $1.031. Since then, ATO stock grew a 10,867.00%, with a yearly average of 310.50%. If you had invested $1,000 in Atmos Energy stock in 1983, it would worth $108,670.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Atmos Energy stock historical price chart

ATO stock reached all-time highs today with a price of $113.31.

Atmos Energy stock price target is $114.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 2 price predictions for Atmos Energy stock:
ATO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-16Morgan StanleyLowers Target$112.00$109.00-2.7%
2019-7-15Wells Fargo & CoInitiatesn/a$119.00-
(in average)$112.00$114.002.0%
The price forecast for Atmos Energy stock is $114.00, moving in a range between $119.00 and $109.00.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Atmos Energy presented its financial report, posting a slightly fine climb for the Earnings per Share (EPS). Analyst were expecting $1.33 per share, but Atmos Energy posted $1.38.
ATO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a1.53n/a
2017-Q2-n/a0.67n/a
2017-Q32017-11-080.340.340.0%
2017-Q42018-02-061.131.423.9%
2018-Q12018-05-021.541.571.9%
2018-Q22018-08-080.680.64-5.9%
2018-Q32018-11-070.370.4110.8%
2018-Q42019-02-051.331.383.8%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw an extraordinary increase of 12.89% to $3,115.55 million dollars. On the other hand, its profit margin (compared to revenues) gained to 19.36%, that is $603.06 million.

Atmos Energy presents anual results in September, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Atmos Energy TTM sales up to December 2018 were $3,104.14 and income $446.58 million USD. If we compare this TTM figures with the last reported annuality, we can review Atmos Energy business evolution since September 2018: Annual sales up to December, compared to lastest yearly report, remained steady a tight -0.37%. However, profit margin (net income/sales) depreciated at 19.36%.

ATO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3,890 M-$230 M5.9%-
2014$4,941 M27.02%$290 M5.9%26.05%
2015$4,142 M-16.17%$315 M7.6%8.72%
2016$3,350 M-19.13%$350 M10.5%11.12%
2017$2,760 M-17.62%$396 M14.4%13.23%
2018$3,116 M12.89%$603 M19.4%52.13%
TTM $3,104 M-0.37%$447 M14.4%-25.95%

Quarterly financial results

Atmos Energy reported $877.78 M in sales for 2018-Q4, a 97.39% up compared to previous quarter. Reported quarter income marked $157.65 M with a profit margin of 17.96%. Profit margin jumped a 9.25% compared to previous quarter when profit margin was 8.71%. When comparing sales to same quarter last year, Atmos Energy sales marked an unpleasant decrease and declined a -1.28%.
ATO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$988 M-$162 M16.4%-
2017-Q2$527 M-46.72%$71 M13.4%-56.29%
2017-Q3$465 M-11.70%$36 M7.7%-49.31%
2017-Q4$889 M91.27%$314 M35.3%776.17%
2018-Q1$1,219 M37.14%$179 M14.7%-43.02%
2018-Q2$562 M-53.89%$71 M12.7%-60.23%
2018-Q3$445 M-20.91%$39 M8.7%-45.57%
2018-Q4$878 M97.39%$158 M18.0%306.86%

Atmos Energy ownership

When you are planning to invest in shares of a company, it's always worth to overview its ownership structure.

Atmos Energy shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.15% of all shares.

Bearish positions for ATO stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related companies:

ATOCNPCPKNFGNI
Market cap$13.4 B$15.2 B$1.5 B$4.2 B$11.0 B
Total shares118.2 M502.2 M16.4 M86.3 M373.4 M
Float shares116.8 M500.7 M15.8 M84.1 M371.4 M
  - Institutional holdings (%)80.6%84.1%66.9%76.3%95.3%
  - Insider holdings (%)1.1%0.2%4.3%2.1%0.4%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Atmos Energy summary

Friday, September 20th, 2019
Open$112.70
Close$112.96
Day range$112.09 - $113.31
Previous close$112.28
Session gain0.61%
Average true range$1.53
50d mov avg$108.87
100d mov avg$106.01
200d mov avg$101.28
Daily pattern
Weekly pattern lb01c

Atmos Energy performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected CenterPoint Energy, Chesapeake Utilities, National Fuel Gas, NiSource, ONE Gas, ONEOK, RGC Resources and Spire as the bechmarking frame for Atmos Energy stock.
Stock3m6m12m
ATOAtmos Energy5.62%10.96%22.65%
CNPCenterPoint Energ...2.40%0.70%12.50%
CPKChesapeake Utilit...0.33%3.27%7.78%
NFGNational Fuel Gas-11.12%-19.15%-11.70%
NINiSource0.96%4.36%18.61%
OGSONE Gas2.22%6.53%18.18%
OKEONEOK10.30%11.58%14.47%
RGCORGC Resources3.89%10.36%6.71%
SRSpire2.18%8.32%19.77%

Atmos Energy competitors

One check before trading any stock is to have a look a list of its competitors, in this case for Atmos Energy. We chose 8 companies as Atmos Energy competitors as they are in the same industry or have similar market objectives.