ROANOKE, VA - In a recent transaction on June 3, 2024, Miles Christen Brooke, the Vice President of Human Resources at RGC Resources Inc. (NASDAQ:RGCO), acquired additional shares in the company. The executive purchased 4.85 shares of common stock at a price of $20.62 per share, amounting to a total investment of $100.
The purchase was made as an optional cash contribution under the RGC Resources, Inc. Dividend Reinvestment and Stock Purchase Plan, as indicated in the footnotes of the SEC filing. Following this transaction, Miles Christen Brooke now owns a total of 3787.474 shares of RGC Resources Inc.
RGC Resources Inc., based in Roanoke, Virginia, operates in the natural gas transmission and distribution sector. The company's shares are traded on the NASDAQ stock exchange under the ticker symbol RGCO.
Investors often monitor the buying and selling activities of company executives as it can provide insights into their confidence in the company's future performance. Transactions like these are reported to the Securities and Exchange Commission (SEC) and are publicly available for investors' scrutiny.
The filing also noted that Miles Christen Brooke holds 5000 employee stock options, exercisable at a price of $16.62, which are set to expire on October 18, 2033. These options represent a potential future ownership stake in the company, separate from the directly owned shares reported in the recent purchase.
The transaction was officially signed by Christen Brooke Miles on June 5, 2024, as documented in the ownership document filed with the SEC.
In other recent news, RGC Resources has reported its second quarter results for 2024, revealing a steady performance despite inflationary pressures and higher interest rates. The company experienced a slight decrease in operating income, but an increase in net income was observed compared to the same quarter last year, largely due to the AFUDC from its investment in the Mountain Valley Pipeline (MVP).
The company's total billed customers grew to 63,660, and gas volumes increased by 9% due to colder weather and increased industrial throughput. Capital expenditure for the first half of fiscal 2024 was $11.3 million, down from $12.9 million in the previous year. The company also filed a general rate case seeking an increase in base rates to offset rising costs and inflation.
RGC Resources anticipates the MVP to start operations by May 23, 2024, with shipper contracts active from June 1. The company's capital investment plan for 2024 remains steady, with a slight increase from the previous year. Earnings guidance for 2024 remains unchanged, with the second half of the year expected to be influenced by the new rate case and MVP operations.
Despite a challenging economic environment, RGC Resources is preparing for the anticipated operational launch of the MVP, which is expected to significantly impact the company's gas supply costs and efficiency. These are recent developments that investors should keep an eye on.
InvestingPro Insights
As RGC Resources Inc. (NASDAQ:RGCO) continues to catch the attention of investors with insider activity, a closer look at the company's financial health and performance metrics offers additional insights. RGC Resources Inc. has demonstrated a strong commitment to returning value to shareholders, having raised its dividend for 10 consecutive years and maintained dividend payments for 31 consecutive years, according to InvestingPro Tips. This consistent dividend history underscores the company's financial stability and dedication to its shareholders.
From a financial standpoint, RGC Resources Inc. boasts a market capitalization of $208.92 million USD. The company's Price to Earnings (P/E) ratio stands at 15.34, which adjusts slightly to 15.87 when looking at the last twelve months as of Q2 2024. Additionally, the Price to Book (P/B) ratio during the same period is 1.89, suggesting a potentially reasonable valuation relative to the company's net assets.
Despite a notable revenue decline of 18.97% in the last twelve months as of Q2 2024, the company's gross profit margin remains robust at 36.75%. This indicates that RGC Resources has been able to maintain a strong control over its cost of goods sold relative to its sales.
For investors interested in further analysis and metrics, InvestingPro Tips offers more in-depth financial details and expert insights. Currently, there are an additional 4 tips available for RGC Resources Inc. on InvestingPro. To access these insights and take advantage of the expert financial analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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