ARC Resources (TSE:ARX) Trading Down 6.8% Following Analyst Downgrade

Shares of ARC Resources Ltd. (TSE:ARX) traded down 6.8% during mid-day trading on Friday after Scotiabank downgraded the stock from an outperform rating to a hold rating. Scotiabank now has a C$30.00 price target on the stock, down from their previous price target of C$36.00. ARC Resources traded as low as C$23.92 and last traded at C$24.38. 1,906,435 shares traded hands during trading, a decline of 13% from the average session volume of 2,184,991 shares. The stock had previously closed at C$26.17.

Other equities analysts have also issued research reports about the company. CIBC lowered their target price on ARC Resources from C$34.00 to C$31.50 in a research note on Wednesday, October 15th. Capital One Financial upgraded ARC Resources to a “strong-buy” rating in a research report on Monday, October 27th. National Bankshares dropped their target price on ARC Resources from C$33.00 to C$30.00 and set an “outperform” rating for the company in a report on Friday. Finally, Raymond James Financial decreased their price target on shares of ARC Resources from C$35.00 to C$33.00 and set an “outperform” rating on the stock in a research note on Monday, September 15th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of C$32.50.

ARC Resources Trading Down 8.7%

The company has a debt-to-equity ratio of 30.05, a quick ratio of 0.42 and a current ratio of 1.14. The company has a market capitalization of C$13.90 billion, a price-to-earnings ratio of 9.44, a price-to-earnings-growth ratio of 0.29 and a beta of -0.01. The firm has a fifty day moving average price of C$25.53 and a 200-day moving average price of C$27.09.

ARC Resources Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 15th. Shareholders of record on Monday, September 29th were paid a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 3.2%. ARC Resources’s payout ratio is 29.25%.

About ARC Resources

ARC Resources is an independent energy company engaged in the acquisition, exploration, development, and production of conventional oil and natural gas in Western Canada. The company produces light, medium, and heavy crude, condensate, natural gas liquids, and natural gas. Production averaged 163.6 thousand barrels of oil equivalent per day in 2020, and the company estimates that it holds approximately 879 million boe of proven and probable crude oil and natural gas reserves.