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

Key Points

• Consensus rating: Twelve brokerages give ARC Resources a consensus of "Moderate Buy" (5 hold, 5 buy, 2 strong buy) with an average 12‑month price target of C$29.00.
• Analyst views are mixed: several firms (RBC, Raymond James, Scotiabank, CIBC) recently cut ratings or price targets, while Roth MKM upgraded ARC to a strong‑buy, reflecting recent downward pressure but some bullish conviction.
• Recent results and payout: ARC reported C$0.46 EPS on C$1.58B revenue, trades at a PE of 13.3 with a C$16.94B market cap, and declared a quarterly dividend of C$0.21 (annualized C$0.84, ~2.9% yield; ex‑dividend March 31, payable April 15).

Shares of ARC Resources Ltd. (TSE:ARX - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the twelve brokerages that are covering the company, MarketBeat reports. Five 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 12 month price objective among analysts that have updated their coverage on the stock in the last year is C$29.00.

Several equities analysts have recently weighed in on the company. Royal Bank Of Canada cut their price objective on ARC Resources from C$32.00 to C$28.00 and set an "outperform" rating on the stock in a report on Monday, February 9th. Raymond James Financial downgraded 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 report on Monday, February 9th. Scotiabank cut their price target on shares of ARC Resources from C$30.00 to C$28.00 and set a "sector perform" rating on the stock in a research note on Wednesday, January 21st. Canadian Imperial Bank of Commerce cut shares of ARC Resources from an "outperform" rating to a "neutral" rating and reduced their price target for the company from C$27.50 to C$25.50 in a report on Monday, February 9th. Finally, Roth Mkm raised shares of ARC Resources to a "strong-buy" rating in a research report on Friday, December 19th.

ARC Resources Stock Performance

Shares of ARC Resources stock opened at C$29.12 on Monday. The stock's fifty day simple moving average is C$25.33 and its 200 day simple moving average is C$25.35. 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 company has a market capitalization of C$16.94 billion, a PE ratio of 13.30, a PEG ratio of 0.29 and a beta of -0.06. ARC Resources has a 12 month low of C$21.14 and a 12 month high of C$31.56.

ARC Resources (TSE:ARX - Get Free Report) last posted 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 return on equity of 15.52% and a net margin of 20.99%.The firm had revenue of C$1.58 billion during the quarter. On average, research analysts predict that ARC Resources will post 2.7255139 EPS for the current year.

ARC Resources Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 15th will be issued a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Tuesday, March 31st. ARC Resources's dividend payout ratio is 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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