ONE Gas (NYSE:OGS) Shares Gap Down on Disappointing Earnings

ONE Gas, Inc. (NYSE:OGS) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $65.09, but opened at $62.45. ONE Gas shares last traded at $63.53, with a volume of 23,941 shares.

The utilities provider reported $1.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.78 by ($0.03). ONE Gas had a net margin of 9.75% and a return on equity of 8.63%. The firm had revenue of $758.32 million during the quarter, compared to analyst estimates of $1.05 billion. During the same period last year, the business earned $1.84 EPS. The firm’s revenue was down 26.5% compared to the same quarter last year.

ONE Gas Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 4th. Shareholders of record on Monday, May 20th will be issued a $0.66 dividend. The ex-dividend date of this dividend is Friday, May 17th. This represents a $2.64 dividend on an annualized basis and a yield of 4.12%. ONE Gas’s dividend payout ratio is currently 63.77%.

Analysts Set New Price Targets

Several analysts have recently weighed in on OGS shares. UBS Group initiated coverage on ONE Gas in a research note on Friday, April 12th. They set a “sell” rating and a $61.00 target price for the company. Mizuho lifted their price objective on ONE Gas from $63.00 to $64.00 and gave the stock a “neutral” rating in a report on Friday, April 19th. LADENBURG THALM/SH SH upgraded ONE Gas from a “neutral” rating to a “buy” rating and set a $64.50 target price for the company in a research note on Tuesday, March 5th. Morgan Stanley raised their price target on shares of ONE Gas from $57.00 to $58.00 and gave the stock an “equal weight” rating in a research report on Thursday, March 21st. Finally, Wells Fargo & Company raised their price objective on shares of ONE Gas from $60.00 to $63.00 and gave the stock an “equal weight” rating in a report on Friday, February 23rd. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $64.56.

Hedge Funds Weigh In On ONE Gas

A number of hedge funds have recently added to or reduced their stakes in the business. Fifth Third Bancorp raised its holdings in shares of ONE Gas by 66.3% during the first quarter. Fifth Third Bancorp now owns 424 shares of the utilities provider’s stock worth $27,000 after purchasing an additional 169 shares during the period. BKM Wealth Management LLC bought a new stake in shares of ONE Gas during the 4th quarter valued at about $28,000. Quadrant Capital Group LLC raised its stake in ONE Gas by 290.4% during the fourth quarter. Quadrant Capital Group LLC now owns 449 shares of the utilities provider’s stock worth $29,000 after acquiring an additional 334 shares during the period. Jones Financial Companies Lllp lifted its holdings in ONE Gas by 112.3% in the fourth quarter. Jones Financial Companies Lllp now owns 637 shares of the utilities provider’s stock worth $41,000 after acquiring an additional 337 shares during the last quarter. Finally, Hexagon Capital Partners LLC lifted its holdings in ONE Gas by 147.8% in the first quarter. Hexagon Capital Partners LLC now owns 803 shares of the utilities provider’s stock worth $52,000 after acquiring an additional 479 shares during the last quarter. Institutional investors and hedge funds own 88.71% of the company’s stock.

ONE Gas Stock Performance

The company has a market capitalization of $3.63 billion, a price-to-earnings ratio of 15.48, a P/E/G ratio of 3.39 and a beta of 0.65. The stock has a 50 day simple moving average of $63.15 and a 200 day simple moving average of $62.01. The company has a quick ratio of 0.39, a current ratio of 0.52 and a debt-to-equity ratio of 0.78.

ONE Gas Company Profile

ONE Gas, Inc, together with its subsidiaries, operates as a regulated natural gas distribution company in the United States. The company provides natural gas distribution services to approximately 2.3 million customers in Oklahoma, Kansas, and Texas. It serves residential, commercial, and transportation customers.