Robert B. Johnston, a director at RGC Resources Inc . (NASDAQ:), a $205.57 million market cap utility company with a 4.22% dividend yield, recently purchased shares in the company, according to a regulatory filing. According to InvestingPro data, the company has maintained dividend payments for 31 consecutive years. On December 19, Johnston acquired a total of 995 shares of common stock, with prices ranging from $19.62 to $19.77 per share, amounting to a total transaction value of $19,671. Following these transactions, Johnston now directly owns 64,000 shares of RGC Resources. The transactions were reported in a Form 4 filing with the Securities and Exchange Commission. The stock currently trades at a P/E ratio of 17.41, and InvestingPro analysis suggests the stock is currently overvalued. Discover more insights and 5 additional ProTips for RGCO in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, RGC Resources Inc. posted better-than-expected earnings for the fourth quarter of 2024, reporting earnings per share (EPS) of $0.01, surpassing the forecasted loss of $0.01. However, the company’s stock experienced a decrease due to investor concerns over reduced net income and other financial challenges. Revenue for the quarter was $13.1 million, exceeding the forecast of $13 million. Despite these favorable outcomes, RGC Resources’ net income for the fourth quarter significantly decreased to $141,000 from $1 million in the same period last year due to industry challenges such as inflationary pressures and increased interest costs.
RGC Resources anticipates earnings per share between $1.18 and $1.25 for 2025 and plans to invest $21.6 million in capital spending. The company also 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, emphasizing the strategic importance of the MVP pipeline and its capacity for future expansion.
These recent developments come as RGC Resources faces risks and challenges, including lower returns from MVP investments, rising interest costs, inflationary pressures, market volatility, economic uncertainties, and potential regulatory changes. The company’s resilience in its financial performance despite these headwinds highlights its ability to navigate complex industry challenges.
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