ARC Resources Ltd. (TSE:ARX) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analyst consensus: Moderate Buy — ARC Resources has an average rating of "Moderate Buy" from 12 analysts (5 hold, 5 buy, 2 strong buy) and a 12‑month average price target of C$28.50, though several firms recently lowered targets to the C$27–28 range.
• Stock and results — Shares opened at C$25.72 (1‑yr range C$21.14–C$31.56) with a market cap of C$14.68B and P/E ~11.7; the company reported quarterly EPS of C$0.46 on C$1.58B revenue and analysts project about 2.73 EPS for the year.
• Dividend — ARC pays a quarterly dividend of C$0.21 (annualized C$0.84) for a yield of roughly 3.3% and a payout ratio near 35.6%.

Shares of ARC Resources Ltd. (TSE:ARX - Get Free Report) have received an average rating of "Moderate Buy" from the twelve ratings firms that are presently covering the firm, MarketBeat.com reports. Five research analysts have rated the stock with a hold recommendation, five have given a buy recommendation and two have given a strong buy recommendation to the company. The average 1-year price target among brokers that have covered the stock in the last year is C$28.50.

Several equities analysts have commented on ARX shares. Raymond James Financial cut shares of ARC Resources from a "moderate buy" rating to a "hold" rating and dropped their target price for the stock from C$31.00 to C$28.00 in a research report on Monday, February 9th. Desjardins decreased their price target on ARC Resources from C$31.00 to C$27.00 and set a "buy" rating for the company in a research report on Monday, February 9th. Roth Mkm upgraded ARC Resources to a "strong-buy" rating in a report on Friday, December 19th. Scotiabank raised ARC Resources to a "hold" rating in a research report on Wednesday, April 1st. Finally, BMO Capital Markets reduced their price objective on ARC Resources from C$33.00 to C$28.00 and set an "outperform" rating for the company in a research note on Monday, February 9th.

ARC Resources Price Performance

Shares of TSE:ARX opened at C$25.72 on Friday. ARC Resources has a 1-year low of C$21.14 and a 1-year high of C$31.56. The company has a current ratio of 0.70, a quick ratio of 0.42 and a debt-to-equity ratio of 58.50. The stock has a market cap of C$14.68 billion, a PE ratio of 11.74, a price-to-earnings-growth ratio of 0.29 and a beta of -0.30. The stock's fifty day simple moving average is C$26.37 and its two-hundred day simple moving average is C$25.66.

ARC Resources (TSE:ARX - Get Free Report) last announced its 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 20.99% and a return on equity of 15.52%. The company had revenue of C$1.58 billion during the quarter. As a group, analysts forecast that ARC Resources will post 2.7255139 EPS for the current fiscal year.

ARC Resources Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 15th were given a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend was Tuesday, March 31st. ARC Resources's dividend payout ratio (DPR) is currently 35.62%.

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.

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