ARC Resources (TSE:ARX) Stock Price Down 11.1% After Analyst Downgrade

ARC Resources Ltd. (TSE:ARX) shares fell 11.1% 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$22.59. 7,038,157 shares were traded during trading, an increase of 77% from the average session volume of 3,980,826 shares. The stock had previously closed at C$25.40.

A number of other analysts have also recently commented on ARX. MKM Partners set a C$34.00 price target on shares of ARC Resources and gave the company a “buy” rating in a research report on Friday, December 19th. CIBC cut their target price on ARC Resources from C$34.00 to C$31.50 in a research report on Wednesday, October 15th. Jefferies Financial Group lowered their target price on ARC Resources from C$28.00 to C$27.00 in a report on Tuesday, January 20th. Capital One Financial raised ARC Resources to a “strong-buy” rating in a research note on Monday, October 27th. Finally, UBS Group downgraded shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 12th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, ARC Resources presently has a consensus rating of “Moderate Buy” and an average target price of C$31.96.

ARC Resources Price Performance

The business has a 50-day moving average price of C$25.22 and a two-hundred day moving average price of C$25.64. The company has a quick ratio of 0.42, a current ratio of 1.14 and a debt-to-equity ratio of 30.05. The company has a market capitalization of C$13.10 billion, a price-to-earnings ratio of 9.58, a price-to-earnings-growth ratio of 0.29 and a beta of 0.00.

ARC Resources (TSE:ARX) last announced its quarterly earnings results on Thursday, February 5th. The oil and gas exploration company reported C$0.46 EPS for the quarter. ARC Resources had a net margin of 20.95% and a return on equity of 14.60%. As a group, research analysts anticipate that ARC Resources Ltd. will post 2.7255139 EPS for the current year.

ARC Resources Company Profile

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.