RGC Resources (NASDAQ:RGCO) Shares Break Below 200-Day Moving Average - Time to Sell?

Key Points

• RGCO shares slipped below their 200-day moving average of $22.60, trading as low as $22.59 before closing near $22.63.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and a $27.00 average price target, although Wall Street Zen downgraded the stock to “Sell.”
• RGC Resources reported weaker-than-expected quarterly results, but announced a $0.2175 quarterly dividend, equivalent to a 3.8% yield; insiders have also purchased shares recently.

RGC Resources Inc. (NASDAQ:RGCO - Get Free Report)'s share price crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $22.60 and traded as low as $22.59. RGC Resources shares last traded at $22.63, with a volume of 7,245 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Wall Street Zen lowered RGC Resources from a "hold" rating to a "sell" rating in a research report on Saturday, September 26th. Weiss Ratings cut RGC Resources from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Finally, Huntington began coverage on RGC Resources in a research report on Monday, September 14th. They set an "outperform" rating and a $27.00 price target for the company. Two investment analysts have rated the stock with a Buy rating. According to MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $27.00.

RGC Resources Stock Down 1.1%

The business has a fifty day moving average of $21.72 and a 200 day moving average of $22.60. The company has a market capitalization of $235.80 million, a PE ratio of 16.89 and a beta of 0.50. The company has a current ratio of 0.94, a quick ratio of 0.67 and a debt-to-equity ratio of 1.19.

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

RGC Resources Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 16th will be paid a $0.2175 dividend. The ex-dividend date of this dividend is Friday, October 16th. This represents a $0.87 annualized dividend and a dividend yield of 3.8%. RGC Resources's dividend payout ratio (DPR) is presently 64.93%.

Insider Activity at RGC Resources

In other RGC Resources news, Director John Williamson, III acquired 2,500 shares of the company's 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 completion of the acquisition, the director 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 acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have purchased a total of 8,330 shares of company stock valued at $175,638 over the last ninety days. Company insiders own 7.20% of the company's stock.

Institutional Investors Weigh In On RGC Resources

A number of hedge funds have recently added to or reduced their stakes in RGCO. Hennessy Advisors Inc. grew 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 worth $329,000 after acquiring an additional 800 shares in the last quarter. Ancora Advisors LLC acquired a new stake in shares of RGC Resources in the second quarter valued at $3,272,000. BlackRock Inc. purchased a new position in RGC Resources in the second quarter valued at $10,213,000. Deutsche Bank AG purchased a new position in RGC Resources in the second quarter valued at $199,000. Finally, Bank of New York Mellon Corp purchased a new position in RGC Resources in the second quarter valued at $1,717,000. 35.77% of the stock is currently owned by institutional investors and hedge funds.

About RGC Resources

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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