Natural gas utility ONE Gas is navigating a period of significant market volatility, with recent trading activity pointing toward continued downward momentum. Despite brief attempts at recovery, selling pressure has emerged as the dominant force shaping the stock’s trajectory.
Technical Indicators Flash Warning Signals
The stock is currently grappling with substantial selling pressure. Trading on Monday saw shares decline by 1.93 percent to $74.52, accompanied by notably elevated trading volume of 400,000 shares. A minor rebound of 0.13 percent to $75.22 in the previous session appears to represent merely a temporary pause within a broader downward trend. Since reaching its peak on August 22, ONE Gas shares have declined by 3.21 percent.
From a technical perspective, both short-term and long-term moving averages are generating clear sell signals. The breach of a critical pivot point in late August has further confirmed the bearish reversal in the stock’s price direction.
Strong Fundamentals Provide Counterbalance
Despite these technical challenges, the company maintains confident full-year projections:
- 2025 Net Income: $254-261 million
- Earnings Per Share: $4.20-$4.32
- Capital Investment Program: $750 million
The upgraded annual guidance benefits from recent rate case approvals, including a $41.1 million increase in Oklahoma. Business expansion initiatives in growth markets like Texas and Oklahoma, supported by $180 million in investments, are expected to provide additional operational momentum.
Should investors sell immediately? Or is it worth buying ONE Gas?
The critical question remains whether these solid fundamental metrics can overcome the technical damage. Recent quarterly results offered a mixed preview: while revenue showed improvement, EPS of $0.53 fell short of analyst expectations.
Analyst Sentiment Remains Cautiously Positive
Wall Street opinions present a divided landscape. The average price target of $77.64 suggests potential upside of 3.65 percent, though the range of assessments varies considerably:
- Highest Price Target: $89.00 (Wells Fargo)
- Lowest Price Target: $71.00 (Morgan Stanley)
- Recommendations: 4 Buy, 3 Hold
A modest reduction in short positions indicates some growing confidence in the company’s longer-term outlook.
Energy Market Volatility Adds Uncertainty
Fluctuating natural gas prices continue to represent a significant factor influencing performance. The commodity currently trades at $3.02 with a slight daily decline of 0.36 percent. While monthly performance shows a gain of 7.48 percent, such price volatility directly impacts the utility’s operational margin development.
Market observers are watching closely to determine whether ONE Gas’s fundamental strengths will prove sufficient to reverse the current technical downtrend. The coming trading sessions will reveal whether buyers return to the market or if sellers maintain their control over price action.
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