RGC Resources (NASDAQ:RGCO) Rating Lowered to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded RGC Resources from “hold” to “sell,” contrasting with an overall MarketBeat consensus rating of “Buy” and a $27.00 consensus price target.
• RGC Resources opened at $21.28, with a market capitalization of approximately $221.7 million; its latest quarterly results missed estimates, reporting EPS of $0.05 versus $0.06 expected and revenue of $17.11 million versus $18.19 million expected.
• Insider and institutional activity was generally positive: a director purchased 2,500 shares, insiders bought 8,334 shares over three months, and institutional investors own 35.77% of the company.

RGC Resources (NASDAQ:RGCO - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other research firms have also recently weighed in on RGCO. Huntington initiated coverage on shares of RGC Resources in a research note on Monday, September 14th. They set an "outperform" rating and a $27.00 target price on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of RGC Resources in a research note on Friday, August 7th. Two analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $27.00.

RGC Resources Stock Up 2.4%

RGCO stock opened at $21.28 on Friday. The firm has a 50-day moving average price of $21.79 and a 200-day moving average price of $22.55. RGC Resources has a 12 month low of $20.55 and a 12 month high of $27.99. The company has a current ratio of 0.94, a quick ratio of 0.67 and a debt-to-equity ratio of 1.19. The stock has a market capitalization of $221.74 million, a P/E ratio of 15.88 and a beta of 0.52.

RGC Resources (NASDAQ:RGCO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The energy company reported $0.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.01). The company had revenue of $17.11 million for the quarter, compared to the consensus estimate of $18.19 million. RGC Resources had a net margin of 13.05% and a return on equity of 11.73%.

Insider Transactions at RGC Resources

In other RGC Resources news, Director John Williamson, III bought 2,500 shares of the business's stock in a transaction that occurred on Wednesday, September 23rd. The shares were acquired at an average cost of $20.94 per share, for a total transaction of $52,350.00. Following the transaction, the director directly owned 182,431 shares in the company, valued at approximately $3,820,105.14. This represents a 1.39% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last three months, insiders have purchased 8,334 shares of company stock valued at $175,772. 7.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On RGC Resources

A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of RGC Resources in the second quarter worth $10,213,000. Gamco Investors INC. ET AL lifted its holdings in RGC Resources by 0.9% during the 1st quarter. Gamco Investors INC. ET AL now owns 416,900 shares of the energy company's stock worth $9,193,000 after buying an additional 3,600 shares during the period. Gabelli Funds LLC lifted its holdings in RGC Resources by 0.6% during the 1st quarter. Gabelli Funds LLC now owns 230,300 shares of the energy company's stock worth $5,078,000 after buying an additional 1,300 shares during the period. Ancora Advisors LLC bought a new stake in shares of RGC Resources in the 2nd quarter valued at about $3,272,000. Finally, Dimensional Fund Advisors LP grew its position in shares of RGC Resources by 2.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 126,931 shares of the energy company's stock valued at $2,799,000 after buying an additional 3,175 shares during the last quarter. Institutional investors and hedge funds own 35.77% of the company's stock.

RGC Resources Company Profile

RGC Resources, Inc is a holding company whose principal subsidiary, Roanoke Gas Company, provides regulated natural gas distribution services in southwestern Virginia. The company delivers natural gas to residential, commercial and industrial customers through a local distribution network.

Roanoke Gas serves communities in and around the Roanoke Valley, including the cities of Roanoke, Salem and Vinton, as well as portions of surrounding counties. Its activities include operating and maintaining natural gas pipelines, providing customer connections and delivering gas for heating, water heating, cooking and other commercial and industrial uses.

RGC Resources traces its operating history to Roanoke Gas Company, which was established in the early twentieth century.

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