RGC Resources (NASDAQ:RGCO) Stock Rating Raised to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded RGC Resources from “sell” to “hold,” while the broader analyst consensus remains “Buy” with a $27.00 target price.
• RGC Resources shares opened at $22.63, near their 200-day average of $22.60, after the company reported quarterly earnings of $0.05 per share and revenue of $17.11 million—both slightly below analyst expectations.
• Insiders purchased 8,330 shares worth approximately $175,638 over the past quarter, while institutional investors own 35.77% of the company.

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

A number of other brokerages have also recently commented on RGCO. Weiss Ratings cut shares of RGC Resources from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Huntington assumed coverage on RGC Resources in a research note on Monday, September 14th. They set an "outperform" rating and a $27.00 price target on the stock. Two investment analysts have rated the stock with a Buy rating. According to MarketBeat.com, RGC Resources presently has a consensus rating of "Buy" and a consensus target price of $27.00.

RGC Resources Stock Down 1.1%

Shares of RGC Resources stock opened at $22.63 on Friday. RGC Resources has a 52-week low of $20.55 and a 52-week high of $27.99. The company has a 50-day simple moving average of $21.72 and a two-hundred day simple moving average of $22.60. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.67 and a current ratio of 0.94. The stock has a market capitalization of $235.80 million, a PE ratio of 16.89 and a beta of 0.50.

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

Insider Transactions at RGC Resources

In related news, Director John Williamson, III purchased 2,500 shares of RGC Resources stock in a transaction that occurred on Wednesday, September 23rd. The stock was purchased at an average price 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 trade represents a 1.39% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Insiders have acquired 8,330 shares of company stock worth $175,638 over the last quarter. Company insiders own 7.20% of the company's stock.

Institutional Trading of RGC Resources

Several large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of RGC Resources during the 2nd quarter worth approximately $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 in the last quarter. Gabelli Funds LLC grew its position in shares of RGC Resources by 0.6% during the first 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 in the last quarter. Ancora Advisors LLC purchased a new position in RGC Resources in the second quarter valued at $3,272,000. Finally, Dimensional Fund Advisors LP boosted its holdings 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 in the last quarter. 35.77% of the stock is currently owned by hedge funds and other institutional investors.

RGC Resources Company Profile

RGC Resources, Inc is a holding company whose principal subsidiary, Roanoke Gas Company, distributes natural gas to residential, commercial and industrial customers in and around Roanoke, Virginia. The company's operations include the delivery of natural gas through a regulated local distribution system and related customer services.

Roanoke Gas Company has served the Roanoke Valley for more than a century, developing and maintaining the infrastructure needed to provide natural gas to communities in southwestern Virginia.

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