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Oliver Lawrence T., Vice President and Secretary of RGC Resources Inc . (NASDAQ:RGCO), a $206 million market cap utility company currently trading near $20.11, reported acquiring a significant amount of the company's stock. According to InvestingPro data, RGCO offers an attractive 4.14% dividend yield and has raised dividends for 11 consecutive years. On January 2, Lawrence purchased 5,097 shares of common stock valued at $101,940, with each share priced at $20. This acquisition was part of an award under the Restricted Stock Plan, with shares set to vest over a three-year period.
Additionally, Lawrence made a smaller purchase of 10 shares at the same price, totaling $200. These transactions reflect Lawrence's growing stake in the company, with his post-transaction holdings amounting to 23,074.76 shares, including 5,577 shares of unvested restricted stock.
In other recent news, RGC Resources Inc. reported better-than-expected earnings for the fourth quarter of 2024, posting earnings per share (EPS) of $0.01 against a forecasted loss of $0.01. Despite surpassing the earnings forecast, the company's stock fell due to investor concerns over lower net income and other financial challenges. RGC Resources' revenue for the quarter was $13.1 million, exceeding the forecast of $13 million. However, the company's net income for the quarter significantly declined to $141,000 from $1 million in the same period last year.
Among the recent developments, RGC Resources has announced a 4% dividend increase to $0.83 annually and is exploring potential expansion opportunities for the Mountain Valley Pipeline (MVP). CEO Paul Nestor expressed optimism about the company's growth prospects, particularly in their service territory and the growth potential of the MVP pipeline. Despite the earnings beat, RGC Resources' stock fell in after-hours trading, indicating investor concerns about the company’s reduced net income and broader economic challenges.
In the face of industry challenges such as inflationary pressures and increased interest costs, RGC Resources forecasts earnings per share between $1.18 and $1.25 for 2025. The company plans to invest $21.6 million in capital spending. These recent developments highlight the company's strategic approach to navigating the current market conditions.
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