ARC Resources (TSE:ARX) Shares Down 12.7% on Analyst Downgrade

ARC Resources Ltd. (TSE:ARX)’s stock price dropped 12.7% on Friday after National Bankshares downgraded the stock from an outperform rating to a sector perform rating. National Bankshares now has a C$26.00 price target on the stock, down from their previous price target of C$27.00. ARC Resources traded as low as C$21.14 and last traded at C$22.18. Approximately 8,033,350 shares were traded during trading, an increase of 100% from the average daily volume of 4,012,499 shares. The stock had previously closed at C$25.40.

A number of other brokerages have also recently weighed in on ARX. Scotiabank dropped their price objective on shares of ARC Resources from C$30.00 to C$28.00 and set a “sector perform” rating for the company in a research note on Wednesday, January 21st. MKM Partners set a C$34.00 price target on ARC Resources and gave the stock a “buy” rating in a research report on Friday, December 19th. UBS Group cut ARC Resources from a “strong-buy” rating to a “hold” rating in a report on Friday, December 12th. Jefferies Financial Group reduced their price objective on ARC Resources from C$28.00 to C$27.00 in a research report on Tuesday, January 20th. Finally, Capital One Financial raised shares of ARC Resources to a “strong-buy” rating in a research note on Monday, October 27th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, ARC Resources currently has a consensus rating of “Moderate Buy” and a consensus price target of C$31.96.

ARC Resources Stock Performance

The company has a market cap of C$13.10 billion, a price-to-earnings ratio of 9.58, a P/E/G ratio of 0.29 and a beta of 0.00. The company has a current ratio of 1.14, a quick ratio of 0.42 and a debt-to-equity ratio of 30.05. The stock’s 50 day moving average price is C$25.22 and its 200 day moving average price is C$25.64.

ARC Resources (TSE:ARX) last released its earnings results on Thursday, February 5th. The oil and gas exploration company reported C$0.46 earnings per share (EPS) for the quarter. ARC Resources had a net margin of 20.95% and a return on equity of 14.60%. On average, analysts expect that ARC Resources Ltd. will post 2.7255139 EPS for the current fiscal year.

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.