RGC Resources (NASDAQ:RGCO) Share Price Crosses Below 200-Day Moving Average – Should You Sell?

RGC Resources Inc. (NASDAQ:RGCO)’s stock price passed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $22.55 and traded as low as $21.75. RGC Resources shares last traded at $22.61, with a volume of 23,348 shares trading hands.

Wall Street Analysts Forecast Growth

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

RGC Resources Stock Down 1.4%

The company has a market cap of $232.26 million, a price-to-earnings ratio of 16.63 and a beta of 0.50. The firm’s fifty day simple moving average is $21.63 and its 200 day simple moving average is $22.55. 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) last announced its quarterly earnings results on Wednesday, August 5th. The energy company reported $0.05 earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.01). The company had revenue of $17.11 million during the quarter, compared to analysts’ expectations 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 company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 16th will be paid a dividend of $0.2175 per share. This represents a $0.87 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend is Friday, October 16th. RGC Resources’s payout ratio is 64.93%.

Insider Transactions at RGC Resources

In related news, Director John Williamson, III acquired 2,500 shares of the firm’s stock in a transaction that occurred on Wednesday, September 23rd. The shares were acquired at an average price of $20.94 per share, with a total value of $52,350.00. Following the completion of the purchase, the director directly owned 182,431 shares in the company, valued at approximately $3,820,105.14. The trade was a 1.39% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last 90 days, insiders purchased 8,330 shares of company stock valued at $175,638. 7.20% of the stock is currently owned by corporate insiders.

Institutional Trading of RGC Resources

Institutional investors have recently made changes to their positions in the stock. Hennessy Advisors Inc. lifted its position in shares of RGC Resources by 6.2% during the second quarter. Hennessy Advisors Inc. now owns 13,754 shares of the energy company’s stock worth $329,000 after purchasing an additional 800 shares in the last quarter. Ancora Advisors LLC acquired a new stake in RGC Resources during the second quarter valued at approximately $3,272,000. BlackRock Inc. bought a new position in RGC Resources during the second quarter worth $10,213,000. Deutsche Bank AG bought a new position in shares of RGC Resources during the second quarter valued at approximately $199,000. Finally, Bank of New York Mellon Corp bought a new stake in RGC Resources in the 2nd quarter valued at about $1,717,000. 35.77% of the stock is owned by hedge funds and other institutional investors.

RGC Resources Company Profile

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.