Atmos Energy Keeps Proving That Stability Wins Over Volatility

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On October 17, 2025, Paradiem, LLC disclosed a new position in Atmos Energy (NYSE:ATO), acquiring 86,407 shares in a trade estimated at approximately $14.75 million.

The transaction value represents 3.44% of Paradiem’s reportable U.S. equity assets under management

The post-trade stake is 86,407 shares valued at $14.75 million as of September 30, 2025

Atmos Energy now accounts for 3.44% of fund AUM as of September 30, 2025, placing it just outside the fund’s top five holdings.

What happened

According to a filing with the Securities and Exchange Commission dated October 17, 2025, Paradiem, LLC established a new position in Atmos Energy (NYSE:ATO). The firm purchased 86,407 shares, with the estimated trade valued at approximately $14.75 million. The fund reported 68 total positions after the quarter.

What else to know

This is a new position for Paradiem, LLC and now represents 3.44% of its reportable U.S. equity assets under management.

Top holdings after the filing:

• LRCX: $27.44 million (6.4% of AUM) as of September 30, 2025
• TEL: $19.53 million (4.55% of AUM) as of September 30, 2025
• VLO: $17.87 million (4.17% of AUM) as of September 30, 2025
• LMT: $16.13 million (3.76% of AUM) as of September 30, 2025
• CAT: $15.79 million (3.7% of AUM) as of September 30, 2025

As of October 17, 2025, shares of Atmos Energy were priced at $176.41, up 22.7% for the year ended October 17, 2025, outperforming the S&P 500 by 11.27 percentage points over the past year (252 trading days).

Company Overview

Company Snapshot

Atmos Energy is a leading regulated natural gas utility with a significant presence in the U.S. Its focus on essential utility services and stable customer base underpins a resilient business model within the regulated utilities sector.

Atmos Energy provides regulated natural gas distribution, pipeline, and storage services across eight U.S. states, with approximately three million customers and extensive underground infrastructure. The company owned 71,921 miles of underground distribution and transmission mains. (as of September 30, 2021)

The company generates revenue primarily through regulated distribution of natural gas and ancillary pipeline services.

Atmos Energy serves residential, commercial, public authority, and industrial customers, focusing on reliable energy delivery and infrastructure management in its core markets.

Foolish take

Paradiem's $14.75 million investment in Atmos Energy might look routine, but it most certainly signals where smart money is looking for stability. When markets swing between excitement and anxiety, reliable cash flow businesses often become the quiet winners.

Atmos Energy is a regulated natural-gas utility serving about three million customers across eight states. The company earns predictable and government-approved returns for providing essential services that households and businesses rely on every day. Its size gives it efficiency and bargaining power with regulators, and that in turns help fund ongoing upgrades for safety and capacity. With roughly seventy thousand miles of distribution and transmission mains, Atmos Energy's network forms a moat that would be costly and difficult to replicate.

The heart of Atmos Energy's focus is straightforward: expand and modernize infrastructure, enhance safety measures, and return cash to shareholders through a consistently rising dividend. This combination has helped Atmos Energy outperform the S&P 500 over the past year while preserving the stability investors prize in volatile markets.

For long-term investors, Atmos Energy is a textbook study in how stability pays. By delivering a service people rely on daily and reinvesting with discipline, the company turns predictability into lasting performance.

Glossary

Stake: The ownership interest or investment a fund or individual holds in a company.
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
Regulated Utility: A company whose prices and operations are overseen by government agencies to ensure fair service.
Distribution (natural gas): The process of delivering natural gas from pipelines to end customers, such as homes and businesses.
Pipeline Services: Services related to the transportation and management of energy products through pipelines.
Ancillary Services: Additional services provided by utilities beyond their primary function, often supporting reliability and infrastructure.
Position (in a fund): The amount of a particular security or investment held by a fund or investor.
Outperforming: Achieving a higher return or better performance than a benchmark or comparable group.
TTM: The 12-month period ending with the most recent quarterly report.
Transmission Mains: Large pipelines that transport natural gas over long distances to distribution networks.
Public Authority Customers: Government or municipal entities that purchase services from a utility.
Resilient Business Model: A company structure designed to maintain stable performance despite economic or market changes.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lam Research. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.