Arc Resources Ltd. (OTCMKTS:AETUF) Receives Average Rating of "Hold" from Brokerages

Key Points

• Arc Resources Ltd. has a consensus analyst rating of “Hold.” Among 14 research firms covering the stock, two rate it a sell, nine a hold, and three a buy, with several recent downgrades from major brokerages.
• The company’s latest quarter beat earnings expectations but missed on revenue. Arc Resources reported EPS of $0.75 versus the $0.50 estimate, while revenue came in at $1.09 billion, below the $1.14 billion consensus.
• Shares are trading near the top of their 52-week range. The stock opened at $23.00, close to its 12-month high of $23.79, and the company carries a market cap of $13.03 billion with relatively low leverage.

Shares of Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report) have been assigned a consensus recommendation of "Hold" from the fourteen research firms that are presently covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and three have issued a buy recommendation on the company.

AETUF has been the subject of a number of research analyst reports. TD Securities downgraded shares of Arc Resources from a "buy" rating to a "sell" rating in a research note on Monday, April 27th. Zacks Research lowered shares of Arc Resources from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 7th. BMO Capital Markets downgraded Arc Resources from an "outperform" rating to a "market perform" rating in a report on Tuesday, April 28th. Canaccord Genuity Group lowered Arc Resources from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 28th. Finally, Jefferies Financial Group cut Arc Resources from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, April 29th.

Arc Resources Stock Performance

Shares of OTCMKTS:AETUF opened at $23.00 on Friday. Arc Resources has a twelve month low of $15.50 and a twelve month high of $23.79. The firm has a market cap of $13.03 billion, a PE ratio of 12.57 and a beta of 0.26. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.85 and a current ratio of 0.87. The business has a fifty day moving average of $22.20 and a 200-day moving average of $20.21.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The energy company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.25. Arc Resources had a net margin of 22.77% and a return on equity of 17.47%. The business had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.14 billion. On average, equities research analysts predict that Arc Resources will post 1.67 EPS for the current fiscal year.

Arc Resources Company Profile

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.

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