Arc Resources (OTCMKTS:AETUF) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down at the open to $22.31 from $23.43 but were last quoted around $23.45 on very light volume (485 shares), signaling volatile trading intraday.
• Several firms recently downgraded Arc and the consensus rating is a Hold (1 Strong Buy, 3 Buy, 9 Hold, 1 Sell), reflecting cautious analyst sentiment.
• The company beat EPS expectations ($0.75 vs. $0.50) while missing revenue estimates ($1.09B vs. $1.14B); key fundamentals include a $13.31B market cap, P/E 12.85, ROE 17.7% and a 22.8% net margin.

Shares of Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $23.43, but opened at $22.31. Arc Resources shares last traded at $23.4535, with a volume of 485 shares traded.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. BMO Capital Markets cut shares of Arc Resources from an "outperform" rating to a "market perform" rating in a report on Tuesday, April 28th. Scotiabank restated a "sector perform" rating on shares of Arc Resources in a report on Wednesday, April 29th. Jefferies Financial Group cut shares of Arc Resources from a "strong-buy" rating to a "hold" rating in a report on Wednesday, April 29th. Capital One Financial cut shares of Arc Resources from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 28th. Finally, National Bank Financial cut shares of Arc Resources from an "outperform" rating to a "sector perform" rating in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold".

Arc Resources Stock Up 0.6%

The business has a 50-day simple moving average of $19.79 and a two-hundred day simple moving average of $18.68. The company has a market cap of $13.31 billion, a price-to-earnings ratio of 12.85, a PEG ratio of 0.63 and a beta of 0.28. The company has a quick ratio of 0.69, a current ratio of 0.70 and a debt-to-equity ratio of 0.29.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The energy company reported $0.75 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.25. The business had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.14 billion. Arc Resources had a return on equity of 17.70% and a net margin of 22.77%. As a group, equities analysts forecast that Arc Resources Ltd. will post 2.18 earnings per share for the current fiscal 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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