Arc Resources (OTCMKTS:AETUF) Hits New 1-Year High - What's Next?

Key Points

• Arc Resources shares reached a new 52-week high, trading as high as $23.8275 and closing the session near $23.67, up from a prior close of $23.60.
• Analyst sentiment is mixed but leans toward caution: three analysts rate the stock Buy, nine Hold and two Sell, producing a consensus “Hold” rating after several recent downgrades.
• The company’s latest quarterly results fell short of expectations, with EPS of $0.45 versus $0.48 expected and revenue of $1.09 billion versus $1.18 billion forecast. Analysts expect full-year EPS of approximately $1.67.

Shares of Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report) reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $23.8275 and last traded at $23.6735, with a volume of 5194 shares trading hands. The stock had previously closed at $23.60.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on AETUF. Canaccord Genuity Group cut shares of Arc Resources from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 28th. Royal Bank Of Canada restated an "outperform" rating on shares of Arc Resources in a research report on Wednesday, July 15th. TD Securities lowered Arc Resources from a "buy" rating to a "sell" rating in a research report on Monday, April 27th. Capital One Financial downgraded shares of 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. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold".

Arc Resources Stock Up 0.7%

The stock has a fifty day simple moving average of $22.24 and a two-hundred day simple moving average of $20.54. The company has a current ratio of 0.87, a quick ratio of 0.85 and a debt-to-equity ratio of 0.32. The firm has a market cap of $13.46 billion, a PE ratio of 12.98 and a beta of 0.26.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The energy company reported $0.45 EPS for the quarter, missing the consensus estimate of $0.48 by ($0.03). The business had revenue of $1.09 billion for the quarter, compared to analysts' expectations of $1.18 billion. Arc Resources had a return on equity of 17.47% and a net margin of 22.77%. As a group, sell-side analysts expect that Arc Resources Ltd. will post 1.67 EPS for the current fiscal 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.

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