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

Key Points

• Arc Resources shares gapped down from a prior close of $23.05 to open at $21.92, though they later traded near $23.00 on volume of 15,855 shares.
• Analyst sentiment has weakened, with several firms downgrading the stock; the consensus rating is now “Hold”, based on three Buy, nine Hold and two Sell ratings.
• The company exceeded quarterly EPS expectations, reporting $0.75 versus a $0.50 consensus estimate, but revenue of $1.09 billion fell short of the $1.14 billion forecast. Analysts expect full-year EPS of approximately $1.67.

Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $23.05, but opened at $21.92. Arc Resources shares last traded at $23.00, with a volume of 15,855 shares.

Analyst Ratings Changes

Several equities research analysts recently issued reports on AETUF shares. Canaccord Genuity Group lowered Arc Resources from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 28th. BMO Capital Markets lowered shares of Arc Resources from an "outperform" rating to a "market perform" rating in a report on Tuesday, April 28th. Zacks Research cut shares of Arc Resources from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 7th. Scotiabank reaffirmed a "sector perform" rating on shares of Arc Resources in a report on Wednesday, April 29th. Finally, TD Securities lowered shares of Arc Resources from a "buy" rating to a "sell" rating in a research report on Monday, April 27th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Arc Resources presently has an average rating of "Hold".

Arc Resources Stock Performance

The company has a debt-to-equity ratio of 0.32, a current ratio of 0.87 and a quick ratio of 0.85. The company has a 50 day simple moving average of $22.24 and a 200-day simple moving average of $20.37. The firm has a market cap of $13.01 billion, a PE ratio of 12.55 and a beta of 0.26.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The energy company reported $0.75 EPS for the quarter, topping the consensus estimate of $0.50 by $0.25. The firm had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.14 billion. Arc Resources had a net margin of 22.77% and a return on equity of 17.47%. As a group, equities research analysts anticipate that Arc Resources Ltd. will post 1.67 EPS 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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