Arc Resources (OTCMKTS:AETUF) Shares Gap Up – Still a Buy?

Arc Resources Ltd. (OTCMKTS:AETUF) shares gapped up before the market opened on Friday . The stock had previously closed at $18.21, but opened at $18.89. Arc Resources shares last traded at $18.24, with a volume of 2,202 shares.

Wall Street Analyst Weigh In

AETUF has been the topic of a number of recent research reports. Capital One Financial upgraded shares of Arc Resources to a “strong-buy” rating in a report on Monday, October 27th. Cantor Fitzgerald started coverage on Arc Resources in a report on Monday, October 27th. They set an “overweight” rating on the stock. Zacks Research upgraded shares of Arc Resources from a “strong sell” rating to a “hold” rating in a report on Tuesday. Scotiabank downgraded shares of Arc Resources from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 7th. Finally, UBS Group cut Arc Resources from a “buy” rating to a “hold” rating in a report on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy”.

Arc Resources Stock Performance

The company has a market capitalization of $10.37 billion, a price-to-earnings ratio of 11.63, a price-to-earnings-growth ratio of 1.29 and a beta of 0.29. The stock has a 50 day moving average of $18.06 and a 200 day moving average of $18.36. The company has a quick ratio of 0.53, a current ratio of 0.70 and a debt-to-equity ratio of 0.29.

Arc Resources (OTCMKTS:AETUF) last issued its quarterly earnings results on Thursday, February 5th. The energy company reported $0.32 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.32. Arc Resources had a net margin of 22.03% and a return on equity of 15.49%. The firm had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.07 billion. As a group, analysts predict that Arc Resources Ltd. will post 2.23 EPS for the current year.

About Arc Resources

Arc Resources Ltd., trading on the OTC Markets under the ticker AETUF, is a Canadian energy company primarily engaged in the exploration, development and production of natural gas, condensate and natural gas liquids. Headquartered in Calgary, Alberta, the company’s core operations are concentrated in the Montney formation, a premier resource play extending across northeastern British Columbia and northwestern Alberta. Arc’s portfolio emphasizes liquids-rich gas production supported by proprietary midstream infrastructure, including gas processing facilities, pipelines and water management systems.

Since its formation in the mid-1990s as Arc Energy Trust and its conversion to a corporation in 2015, Arc Resources has pursued a disciplined growth strategy focused on operational efficiency, cost control and sustainable development.