Insider Buying: RGC Resources (NASDAQ:RGCO) Director Acquires 1,000 Shares

Key Points

• Insider purchase: Director John Williamson III bought 1,000 RGC Resources shares at $21.30 each, increasing his holdings by 0.56% to 178,010 shares.
• Financial performance: RGC Resources reported quarterly earnings of $0.05 per share and revenue of $17.11 million, both below analyst expectations.
• Dividend and outlook: The company’s quarterly dividend equates to $0.87 annually and a 4.0% yield. Analysts maintain an overall “Buy” rating, although one firm downgraded the stock to “Hold.”

RGC Resources Inc. (NASDAQ:RGCO - Get Free Report) Director John Williamson III acquired 1,000 shares of the stock in a transaction dated Tuesday, September 1st. The shares were purchased at an average price of $21.30 per share, for a total transaction of $21,300.00. Following the completion of the transaction, the director owned 178,010 shares of the company's stock, valued at $3,791,613. This trade represents a 0.56% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

RGC Resources Stock Performance

Shares of NASDAQ RGCO traded up $0.39 during trading hours on Wednesday, reaching $21.96. The stock had a trading volume of 4,274 shares, compared to its average volume of 12,722. The company has a market cap of $228.82 million, a price-to-earnings ratio of 16.39 and a beta of 0.52. RGC Resources Inc. has a twelve month low of $20.55 and a twelve month high of $27.99. The business's fifty day moving average is $22.84 and its two-hundred day moving average is $22.61. The company has a debt-to-equity ratio of 1.19, a current ratio of 0.94 and a quick ratio of 0.67.

RGC Resources (NASDAQ:RGCO - Get Free Report) last posted its quarterly 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 return on equity of 11.73% and a net margin of 13.05%.The business had revenue of $17.11 million for the quarter, compared to analyst estimates of $18.19 million.

RGC Resources Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Friday, July 17th were paid a $0.2175 dividend. The ex-dividend date of this dividend was Friday, July 17th. This represents a $0.87 dividend on an annualized basis and a yield of 4.0%. RGC Resources's payout ratio is presently 64.93%.

Hedge Funds Weigh In On RGC Resources

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RGCO. California State Teachers Retirement System grew its stake in RGC Resources by 518.8% during the second quarter. California State Teachers Retirement System now owns 2,772 shares of the energy company's stock worth $66,000 after buying an additional 2,324 shares during the last quarter. Hennessy Advisors Inc. raised its stake in shares of RGC Resources by 6.2% in the second quarter. Hennessy Advisors Inc. now owns 13,754 shares of the energy company's stock valued at $329,000 after acquiring an additional 800 shares during the last quarter. Ancora Advisors LLC acquired a new position in shares of RGC Resources in the 2nd quarter worth approximately $3,272,000. BlackRock Inc. acquired a new position in shares of RGC Resources in the 2nd quarter worth approximately $10,213,000. Finally, Deutsche Bank AG bought a new stake in RGC Resources during the 2nd quarter worth approximately $199,000. 35.77% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have weighed in on RGCO. Weiss Ratings reaffirmed a "buy (b)" rating on shares of RGC Resources in a report on Friday, August 7th. Wall Street Zen cut RGC Resources from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. One investment analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, RGC Resources has an average rating of "Buy".

About RGC Resources

RGC Resources, Inc NASDAQ: RGCO is a natural gas distribution and transmission company headquartered in Wheeling, West Virginia. Through its regulated subsidiaries, the company provides energy delivery services to residential, commercial and industrial customers across northern West Virginia, western Pennsylvania and parts of Maryland. RGC Resources focuses on maintaining a safe and efficient local pipeline network to ensure reliable supply to its service areas.

The company operates two primary business segments: distribution and transmission.

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