Arc Resources (OTCMKTS:AETUF) Shares Gap Down - Here's What Happened

Key Points

• Price action: Shares gapped down pre-market, opening at $20.15 versus the prior close of $21.18, though the stock later traded at $21.58 on light volume (~4,958 shares).
• Analyst sentiment has softened with multiple downgrades to Hold/sector perform, but the consensus remains a Moderate Buy (1 Strong Buy, 5 Buy, 6 Hold).
• Fundamentals: Arc reported Q results of $0.32 EPS (in line) and $1.15B revenue (above estimates), with a net margin of 22% and P/E ~13.7, while liquidity ratios are weak (current ratio 0.70).

Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $21.18, but opened at $20.15. Arc Resources shares last traded at $21.58, with a volume of 4,958 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have commented on AETUF shares. Zacks Research raised Arc Resources from a "strong sell" rating to a "hold" rating in a research report on Tuesday, February 17th. Raymond James Financial lowered Arc Resources from a "moderate buy" rating to a "hold" rating in a report on Friday, February 6th. Canadian Imperial Bank of Commerce downgraded shares of Arc Resources from an "outperform" rating to a "hold" rating in a research note on Friday, February 6th. UBS Group lowered shares of Arc Resources from a "buy" rating to a "hold" rating in a research report on Friday, December 12th. Finally, National Bank Financial cut shares of Arc Resources from an "outperform" rating to a "sector perform" rating in a research note on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, Arc Resources presently has an average rating of "Moderate Buy".

Arc Resources Stock Performance

The firm has a fifty day simple moving average of $18.58 and a 200 day simple moving average of $18.35. The company has a current ratio of 0.70, a quick ratio of 0.69 and a debt-to-equity ratio of 0.29. The stock has a market cap of $12.25 billion, a price-to-earnings ratio of 13.74, a PEG ratio of 1.32 and a beta of 0.26.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The energy company reported $0.32 earnings per share for the quarter, hitting the consensus estimate of $0.32. The company had revenue of $1.15 billion for the quarter, compared to analyst estimates of $1.07 billion. Arc Resources had a return on equity of 15.49% and a net margin of 22.03%. As a group, sell-side analysts expect that Arc Resources Ltd. will post 2.23 earnings per share for the current 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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