RGC Resources (NASDAQ:RGCO) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research downgraded shares of RGC Resources (NASDAQ:RGCO) from a strong-buy rating to a hold rating in a report released on Thursday morning, Zacks.com reports.

According to Zacks, “RGC Resources, Inc. has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas and Diversified Energy Company, which serves the Roanoke Valley, Southwestern Virginia and Southern West Virginia. The company’s stock will continue to be listed on the Nasdaq National Market, trading symbol RGCO. (PRESS RELEASE) “

Separately, Janney Montgomery Scott raised RGC Resources from a neutral rating to a buy rating in a research note on Friday, May 10th.

Shares of NASDAQ RGCO opened at $29.22 on Thursday. RGC Resources has a twelve month low of $24.16 and a twelve month high of $31.00. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.86 and a quick ratio of 0.73. The company has a fifty day moving average price of $28.10. The firm has a market capitalization of $235.09 million, a PE ratio of 26.32 and a beta of -0.18.

RGC Resources (NASDAQ:RGCO) last issued its quarterly earnings data on Monday, April 29th. The energy company reported $0.58 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.48 by $0.10. RGC Resources had a return on equity of 10.93% and a net margin of 12.99%. The business had revenue of $25.28 million during the quarter, compared to analysts’ expectations of $25.60 million. As a group, analysts expect that RGC Resources will post 1.06 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 1st. Stockholders of record on Monday, July 15th will be paid a $0.165 dividend. The ex-dividend date is Friday, July 12th. This represents a $0.66 dividend on an annualized basis and a dividend yield of 2.26%. RGC Resources’s payout ratio is presently 16.84%.

In other news, CEO Orazio John S. D sold 3,000 shares of RGC Resources stock in a transaction on Wednesday, June 19th. The stock was sold at an average price of $27.25, for a total value of $81,750.00. Following the completion of the sale, the chief executive officer now directly owns 44,034 shares of the company’s stock, valued at $1,199,926.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders bought 188 shares of company stock valued at $5,326 over the last ninety days. Insiders own 7.30% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. BNP Paribas Arbitrage SA boosted its holdings in RGC Resources by 526.4% in the first quarter. BNP Paribas Arbitrage SA now owns 1,541 shares of the energy company’s stock valued at $41,000 after purchasing an additional 1,295 shares during the period. Metropolitan Life Insurance Co. NY purchased a new position in RGC Resources in the fourth quarter valued at $76,000. MetLife Investment Advisors LLC purchased a new position in RGC Resources in the fourth quarter valued at $104,000. SG Americas Securities LLC purchased a new position in RGC Resources in the first quarter valued at $153,000. Finally, Bank of America Corp DE boosted its holdings in RGC Resources by 24.6% in the fourth quarter. Bank of America Corp DE now owns 10,306 shares of the energy company’s stock valued at $309,000 after purchasing an additional 2,033 shares during the period.

RGC Resources Company Profile

RGC Resources, Inc, through its subsidiaries, operates as an energy services company. The company sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. It also provides various unregulated services. The company operates approximately 1,141 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates 8 metering stations.

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