RGC Resources (NASDAQ:RGCO) Issues Earnings Results

Key Points

• RGC Resources reported quarterly EPS of $0.05, missing the $0.06 consensus estimate, while revenue of $17.11 million also fell short of analysts’ $18.19 million forecast.
• The stock declined 2.6% to $21.70 after the results. Shares trade at a price-to-earnings ratio of 16.19 and remain near the lower end of their 52-week range.
• The company maintains an annualized dividend of $0.87 per share, yielding approximately 4.0%. Institutional investors own 35.77% of the stock, and analyst coverage carries a consensus “Buy” rating.

RGC Resources (NASDAQ:RGCO - Get Free Report) issued its quarterly earnings results on Wednesday. The energy company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.01), Zacks reports. The business had revenue of $17.11 million for the quarter, compared to analyst estimates of $18.19 million. RGC Resources had a return on equity of 11.87% and a net margin of 13.01%.

RGC Resources Trading Down 2.6%

RGC Resources stock traded down $0.59 during midday trading on Wednesday, hitting $21.70. 15,983 shares of the stock were exchanged, compared to its average volume of 12,422. The stock has a market capitalization of $225.90 million, a PE ratio of 16.19 and a beta of 0.51. The company has a fifty day simple moving average of $23.53 and a two-hundred day simple moving average of $22.60. The company has a quick ratio of 0.59, a current ratio of 0.69 and a debt-to-equity ratio of 1.04. RGC Resources has a 52 week low of $20.55 and a 52 week high of $27.99.

RGC Resources Announces Dividend

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

Hedge Funds Weigh In On RGC Resources

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of RGC Resources by 0.6% in the 3rd quarter. Vanguard Group Inc. now owns 442,151 shares of the energy company's stock valued at $9,922,000 after buying an additional 2,678 shares during the period. Ameriprise Financial Inc. grew its stake in RGC Resources by 0.6% in the second quarter. Ameriprise Financial Inc. now owns 403,414 shares of the energy company's stock valued at $9,028,000 after acquiring an additional 2,486 shares during the period. Russell Investments Group Ltd. grew its stake in RGC Resources by 23.2% in the third quarter. Russell Investments Group Ltd. now owns 233,352 shares of the energy company's stock valued at $5,236,000 after acquiring an additional 43,900 shares during the period. Geode Capital Management LLC increased its holdings in shares of RGC Resources by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 199,636 shares of the energy company's stock worth $4,253,000 after acquiring an additional 1,467 shares in the last quarter. Finally, State Street Corp lifted its holdings in shares of RGC Resources by 1.8% during the 4th quarter. State Street Corp now owns 109,804 shares of the energy company's stock valued at $2,339,000 after purchasing an additional 1,898 shares in the last quarter. 35.77% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

RGCO has been the topic of a number of recent research reports. Weiss Ratings raised shares of RGC Resources from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, May 11th. Wall Street Zen raised RGC Resources from a "hold" rating to a "buy" rating in a research note on Saturday, June 27th. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy".

RGC Resources Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source