Paul W. Nester, the President and CEO of RGC Resources Inc . (NASDAQ:RGCO), a $207 million market cap utility company, recently acquired 500 shares of the company's common stock. The purchase, which took place on December 19, 2024, was executed at a price of $19.80 per share, amounting to a total value of $9,900. According to InvestingPro analysis, the stock currently trades at a P/E ratio of 17.5x. Following this transaction, Nester now holds 104,386.869 shares of the company. This increase in shareholding includes additional shares purchased through dividend reinvestment plans. InvestingPro data reveals the company has maintained dividend payments for 31 consecutive years, with a current yield of 4.1%. Subscribers can access 5 additional ProTips and comprehensive valuation metrics through the platform's detailed research reports.
In other recent news, RGC Resources Inc. reported its fourth-quarter earnings for 2024, surpassing expectations with earnings per share (EPS) of $0.01, compared to a predicted loss of $0.01. This positive surprise, however, was overshadowed by a significant decrease in net income to $141,000 from $1 million in the same period last year. Despite this, full-year net income saw a slight increase, rising to $11.8 million from $11.3 million in 2023.
Revenue for the quarter was reported at $13.1 million, slightly above the forecasted $13 million. Capital spending for the company has decreased to $22.1 million from $25.3 million in 2023.
Looking ahead, RGC Resources forecasts EPS 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.
Despite these positive developments, the company's stock fell by 4.29% in after-hours trading, indicating investor concerns about lower net income and broader economic challenges. However, RGC Resources remains optimistic about its growth prospects and is exploring potential expansion opportunities for the Mountain Valley Pipeline.
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