OGS Should I Buy
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ONE Gas Inc. (OGS) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown solid financial performance and growth potential, insider selling, neutral hedge fund activity, and limited upside potential based on technical and options data suggest holding off on immediate investment.
The technical indicators are mixed. The MACD is positive and contracting, suggesting a bullish trend, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, RSI is neutral at 67.425, and the stock is trading near resistance levels (R1: 86.135). The stock has a 70% chance to decline in the next week (-1.18%) and month (-3.52%), indicating limited short-term upside.
Strong Q4 2025 financial performance with revenue up 9.3% YoY, net income up 12.05% YoY, and EPS up 5.97% YoY.
Increased long-term EPS growth guidance to 5%-7% from 4%-6%.
Ambitious capital investment plans of $800M for 2026 and $4.3B over five years.
Appointment of a new President and COO to enhance operational capabilities.
Insider selling increased by 166.30% in the last month, which could indicate a lack of confidence from insiders.
Neutral hedge fund activity with no significant trading trends.
Analysts' price targets are mixed, with some lowering their targets recently.
Limited upside potential in the short term based on technical and stock trend analysis.
In Q4 2025, ONE Gas reported revenue of $689.3M (up 9.3% YoY), net income of $86.31M (up 12.05% YoY), and EPS of $1.42 (up 5.97% YoY). However, gross margin slightly declined to 46.15 (-0.15% YoY). These results indicate solid growth but with some margin pressure.
Analysts have mixed views on OGS. Morgan Stanley raised the price target to $73 but maintains an Equal Weight rating. UBS lowered the target to $83 and keeps a Neutral rating. BofA and Mizuho are more optimistic, with price targets of $92 and $90, respectively, and Buy/Outperform ratings. The consensus reflects cautious optimism but limited upside.
