RGC Resources (NASDAQ:RGCO) Share Price Passes Above Two Hundred Day Moving Average - What's Next?

Key Points

• RGC Resources' stock passed above its 200‑day moving average ($21.77) on Wednesday, trading as high as $23.76 and last at $23.38 on volume of about 39,000 shares, a potential technical breakout.
• A series of analyst upgrades has lifted sentiment—RGC now carries a consensus "Buy" rating after recent moves including Weiss Ratings upgrading to Buy.
• The company announced a quarterly dividend of $0.2175 (annualized $0.87, a 3.7% yield) while reporting a quarter with EPS of $0.47 that missed estimates but revenue that beat; market cap is roughly $243M and the payout ratio is about 70%.

RGC Resources Inc. (NASDAQ:RGCO - Get Free Report)'s stock price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $21.77 and traded as high as $23.76. RGC Resources shares last traded at $23.38, with a volume of 39,029 shares trading hands.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on RGCO shares. Wall Street Zen raised RGC Resources from a "sell" rating to a "hold" rating in a research note on Sunday, February 15th. Weiss Ratings raised RGC Resources from a "hold (c)" rating to a "buy (b-)" rating in a research note on Tuesday, February 10th. One investment analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, RGC Resources currently has a consensus rating of "Buy".

RGC Resources Price Performance

The firm has a market capitalization of $242.92 million, a P/E ratio of 18.85 and a beta of 0.52. The business has a 50-day moving average of $21.83 and a 200 day moving average of $21.77. The company has a current ratio of 0.80, a quick ratio of 0.58 and a debt-to-equity ratio of 1.19.

RGC Resources (NASDAQ:RGCO - Get Free Report) last issued its earnings results on Thursday, February 5th. The energy company reported $0.47 EPS for the quarter, missing analysts' consensus estimates of $0.52 by ($0.05). RGC Resources had a net margin of 13.11% and a return on equity of 11.11%. The firm had revenue of $30.26 million during the quarter, compared to the consensus estimate of $28.21 million. On average, sell-side analysts predict that RGC Resources Inc. will post 1.23 earnings per share for the current fiscal year.

RGC Resources Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 17th will be given a $0.2175 dividend. This represents a $0.87 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend is Friday, April 17th. RGC Resources's payout ratio is presently 70.16%.

Hedge Funds Weigh In On RGC Resources

Several institutional investors have recently modified their holdings of RGCO. Geode Capital Management LLC grew its holdings in shares of RGC Resources by 0.9% in the second quarter. Geode Capital Management LLC now owns 198,394 shares of the energy company's stock valued at $4,441,000 after acquiring an additional 1,701 shares in the last quarter. Ameriprise Financial Inc. lifted 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 purchasing an additional 2,486 shares during the last quarter. Tower Research Capital LLC TRC lifted its stake in RGC Resources by 440.4% in the second quarter. Tower Research Capital LLC TRC now owns 2,821 shares of the energy company's stock valued at $63,000 after purchasing an additional 2,299 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in RGC Resources by 200.0% in the second quarter. Geneos Wealth Management Inc. now owns 1,602 shares of the energy company's stock valued at $36,000 after purchasing an additional 1,068 shares during the last quarter. Finally, D.A. Davidson & CO. purchased a new position in RGC Resources in the third quarter valued at approximately $205,000. 35.77% of the stock is owned by institutional investors.

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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