Aristotle Capital Management Reduces $259M in Atmos Energy Corporation ($ATO)
Aristotle Capital Management reduced its stake in Atmos Energy by 23.6%, now holding 4.9 million shares.
Key Points
- Aristotle Capital Management cut its Atmos Energy stake by 1,503,648 shares, reducing its position by 23.6% to 4,866,481 shares valued at $827.1 million.
- Atmos Energy shares traded at $169.96, with a market cap of approximately $28.4 billion and a P/E ratio of 20.93.
- Insiders at Atmos Energy, including the CEO, made several stock transactions, and analysts maintained a 'hold' rating on the stock.
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Aristotle Capital Management reduced its stake in Atmos Energy Corporation (NYSE:ATO) by 1,503,648 shares, a 23.6% decrease, according to its latest 13F filing. The firm now holds 4,866,481 shares valued at approximately $827.1 million. This filing reflects holdings as of the end of the reporting period and may not represent the current position.
What Changed in Aristotle Capital Management's Atmos Energy Position
The investment firm trimmed its holdings in Atmos Energy from 6,370,129 shares to 4,866,481 shares, a reduction of 1,503,648 shares, or about 23.6%. The reported value of the position now stands at $827.1 million.
Other Institutional Activity in Atmos Energy
BlackRock, Inc. increased its holdings in Atmos Energy by 428,484 shares, ending with 17,451,963 shares worth about $3.22 billion. State Street Corp added 586,392 shares, bringing its total to 11,372,750 shares valued at approximately $2.10 billion. Conversely, Wellington Management Group LLP reduced its stake by 359,036 shares, holding 9,651,472 shares valued at $1.78 billion. Capital International Investors made a significant reduction of 4,567,048 shares, now holding 7,326,778 shares valued at $1.35 billion.
Atmos Energy Corporation Stock Up 3.4%
Shares of Atmos Energy Corporation (NYSE:ATO) traded near $169.96. The company has a market cap of about $28.4 billion and a P/E ratio of 20.93. It has a 52-week low of $149.98 and a high of $192.51, with a 50-day moving average of $180.59 and a 200-day moving average of $175.17. Atmos Energy's beta is 0.601, indicating lower volatility compared to the market.
$ATO stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
Atmos Energy reported revenue of approximately $4.88 billion, with a modest growth rate of 0.6%. The company achieved a net margin of 27.58% and a return on equity of 9.6%. Its next earnings report is expected on May 6, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
2 target raises vs 1 cuts.
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EPS & revenue
EPS beat estimates by 1.1%. Revenue missed estimates by 7.5%.
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Profit surprise
EBITDA beat by 6 percent. Operating income beat by 5 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
2 target raises, 1 target cut.
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Earnings quality
Gross margin down 2.0 points. Operating margin up 6.7 points. Positive free cash flow.
Earnings Call Summary
Atmos earned $2.44 per share in the first quarter, up 9.4 percent from last year, beating consensus on earnings. The company benefited from 35 million dollars in impacts from Texas House Bill 4384 and much wider natural gas spreads at its pipeline business. Winter Storm Fern tested the system but caused minimal supply problems because upstream storage worked well. The company added nearly 54,000 new customers over the past year, mainly in Texas, and continues to see strong industrial and data center interest.
Guidance Atmos reaffirmed its full year earnings guidance of $8.15 to $8.35 per share. The company expects to complete 4.2 billion dollars in capital spending this year focused mainly on safety and system modernization. Management said there was no change to the long-term plan despite a recent rate case outcome in Mississippi.
Fine but not compelling. Acceptable results that likely do not create a meaningful forward reset.
Dividend
Atmos Energy offers an annual dividend rate of $4.00, yielding about 2.35%. The dividend payout ratio is 46.06%.
Insider Buying and Selling at Atmos Energy Corporation
On May 2, 2026, President and CEO John Akers sold 6,235 shares at an average price of $187.74, while also purchasing 16,850 shares at $189.74. Senior VP of Human Resources Matt Robbins sold 2,815 shares and also bought the same amount at $189.74. CFO Christopher Forsythe purchased 3,970 shares at $189.74.
Analysts Set New Price Targets
On May 29, 2026, Mizuho maintained its 'hold' rating on Atmos Energy with a price target of $184. Truist Securities also maintained a 'hold' rating with a target of $187 on May 18, 2026. TD Cowen set a target of $196 with a 'hold' rating on May 15, 2026. The consensus among 11 analysts is a 'hold' recommendation, with an average target price of $186.18.
About Atmos Energy Corporation
Atmos Energy Corporation is a Dallas-based company operating in the utilities sector, specifically focused on natural gas distribution and pipeline and storage services. With approximately 5,487 employees, Atmos serves about 3.4 million customers across eight states. The company manages 76,000 miles of distribution and transmission mains and operates five underground storage facilities.
Bottom Line
Aristotle Capital Management's decision to cut its stake in Atmos Energy by over 1.5 million shares reflects a significant change in its investment strategy. While the market continues to evaluate Atmos Energy's performance, the company's robust presence in the regulated gas utility industry and its steady dividend yield remain points of interest for investors. As always, it's important to remember that 13F filings are historical and may not reflect current positions.
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