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RGC Resources Inc . (NASDAQ:RGCO), a $205 million market cap utility company, recently saw some insider activity as Lawrence T. Oliver, the company’s Vice President and Secretary, acquired additional shares. According to a recent SEC filing, Oliver purchased 10.188 shares of common stock on March 3 at a price of $19.63 per share, totaling approximately $199. InvestingPro analysis shows analysts have set a $27 price target for the stock.
The purchase was made through the RGC Resources, Inc. Dividend Reinvestment and Stock Purchase Plan, allowing Oliver to increase his direct ownership in the company. Post-transaction, Oliver now holds 23,297.278 shares of RGC Resources. The company boasts a strong dividend track record, having maintained payments for 32 consecutive years with an attractive current yield of 4.2%. InvestingPro subscribers can access 12+ additional insights about RGCO’s dividend sustainability and growth potential.
In addition to the stock purchase, the filing detailed Oliver’s holdings in employee stock options, although no new options were exercised during this reporting period. Trading at a P/E ratio of 16.9x, InvestingPro analysis indicates the stock is currently fairly valued based on its proprietary Fair Value model.
In other recent news, RGC Resources Inc. reported its financial results for the first quarter of fiscal year 2024, achieving earnings per share (EPS) of $0.51, slightly surpassing the forecast of $0.50. The company’s revenue also exceeded expectations, reaching $27.29 million compared to the anticipated $26 million. This positive financial performance reflects a strong start to the fiscal year, with net income increasing to $5.3 million from $5.0 million in the same quarter the previous year. RGC Resources benefited from higher rates implemented in July, which bolstered Roanoke Gas margins, although equity earnings from unconsolidated affiliates declined. Interest expenses rose due to increased credit line balances and interest rates. The company has provided an EPS forecast for fiscal year 2025, ranging between $1.18 and $1.25, and plans to refinance a $25 million non-revolving line of credit by the end of 2025. Additionally, RGC Resources is focused on ongoing expansion efforts, including new service connections and main extensions, as well as financial stability through positive discussions with lenders.
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