RGC Resources (NASDAQ:RGCO) Share Price Breaks Below 200-Day Moving Average - What's Next?

Key Points

• Shares dipped below the 200-day moving average of $22.44, reaching $22.20 before last trading at $22.43.
• Analyst sentiment remains positive: the stock has an average Buy rating and a $27 price target, versus its recent price near $22.43.
• RGC Resources pays an annualized dividend of $0.87 per share, a 3.9% yield; insiders also purchased 8,329 shares over the past three months.

RGC Resources Inc. (NASDAQ:RGCO - Get Free Report) shares passed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $22.44 and traded as low as $22.20. RGC Resources shares last traded at $22.43, with a volume of 4,474 shares trading hands.

Wall Street Analysts Forecast Growth

Several analysts have commented on RGCO shares. Wall Street Zen raised shares of RGC Resources from a "sell" rating to a "hold" rating in a research report on Saturday, October 17th. Huntington started coverage on shares of RGC Resources in a research report on Monday, September 14th. They issued an "outperform" rating and a $27.00 price objective on the stock. Finally, Weiss Ratings raised RGC Resources from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, November 9th. Two analysts have rated the stock with a Buy rating. According to data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $27.00.

RGC Resources Price Performance

The stock has a 50 day moving average of $22.16 and a 200-day moving average of $22.44. 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 company has a market cap of $233.72 million, a PE ratio of 16.74 and a beta of 0.51.

RGC Resources Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, November 2nd. Shareholders of record on Friday, October 16th were paid a dividend of $0.2175 per share. This represents a $0.87 annualized dividend and a yield of 3.9%. The ex-dividend date was Friday, October 16th. RGC Resources's payout ratio is presently 64.93%.

Insider Activity

In other RGC Resources news, Director John Williamson, III bought 2,500 shares of the firm's stock in a transaction that occurred on Wednesday, September 23rd. The stock was bought at an average cost of $20.94 per share, for a total transaction of $52,350.00. Following the completion of the transaction, the director directly owned 182,431 shares of the company's stock, valued at approximately $3,820,105.14. This trade represents a 1.39% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders have acquired a total of 8,329 shares of company stock worth $175,636 over the last three months. Company insiders own 7.20% of the company's stock.

Hedge Funds Weigh In On RGC Resources

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

RGC Resources Company Profile

RGC Resources, Inc. is a holding company whose principal operating subsidiary, Roanoke Gas Company, distributes natural gas to residential, commercial and industrial customers in Roanoke and surrounding communities in southwestern Virginia. Roanoke Gas traces its roots to 1883. Its services include natural gas delivery and related customer programs, such as energy-efficiency assistance. Through subsidiaries, RGC Resources also has interests in natural gas infrastructure, including the Mountain Valley Pipeline.

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