Arc Resources (OTCMKTS:AETUF) Shares Down 6.7% - Here's Why

Key Points

• Shares fell 6.7% intraday to $18.66 from a $20.00 close, with only ~29,752 shares trading (down about 86% versus the average daily volume).
• Analysts hold a consensus rating of "Moderate Buy" (2 Strong Buy, 5 Buy, 5 Hold) after mixed recent moves—upgrades from Zacks and Roth MKM and downgrades from Raymond James and CIBC.
• Fundamentals show Q4 EPS of $0.32 met estimates while revenue of $1.15B beat expectations; market cap is about $10.7B, P/E 12.06 and debt/equity 0.29, with operations concentrated in the Montney play.

Shares of Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report) dropped 6.7% during mid-day trading on Wednesday . The stock traded as low as $18.66 and last traded at $18.66. Approximately 29,752 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 214,316 shares. The stock had previously closed at $20.00.

Analyst Ratings Changes

Several research firms have weighed in on AETUF. Scotiabank upgraded Arc Resources to a "hold" rating in a research note on Wednesday, April 1st. Roth Mkm began coverage on Arc Resources in a research note on Friday, December 19th. They set a "buy" rating for the company. Raymond James Financial cut Arc Resources from a "moderate buy" rating to a "hold" rating in a research note on Friday, February 6th. Canadian Imperial Bank of Commerce cut Arc Resources from an "outperform" rating to a "hold" rating in a research note on Friday, February 6th. Finally, Zacks Research upgraded Arc Resources from a "hold" rating to a "strong-buy" rating in a research note on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy".

Arc Resources Stock Down 5.9%

The firm has a 50 day simple moving average of $19.21 and a two-hundred day simple moving average of $18.55. The company has a quick ratio of 0.69, a current ratio of 0.70 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $10.70 billion, a P/E ratio of 12.06, a PEG ratio of 1.00 and a beta of 0.20.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The energy company reported $0.32 EPS for the quarter, meeting analysts' consensus estimates of $0.32. Arc Resources had a return on equity of 15.49% and a net margin of 22.03%.The company had revenue of $1.15 billion during the quarter, compared to analysts' expectations of $1.07 billion. On average, equities research analysts expect that Arc Resources Ltd. will post 2.23 earnings per share for the current 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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