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

Key Points

• Arc Resources shares opened down 5.4%, falling from $23.93 to $22.64 before recovering slightly to about $22.79.
• Analyst sentiment has weakened, with several firms downgrading the stock; despite three Buy and two Sell ratings, the overall consensus remains Hold.
• The company missed quarterly expectations, reporting EPS of $0.45 versus $0.48 expected and revenue of $1.09 billion versus $1.18 billion forecast.

Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $23.93, but opened at $22.64. Arc Resources shares last traded at $22.7891, with a volume of 2,789 shares traded.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on AETUF shares. TD Securities cut Arc Resources from a "buy" rating to a "sell" rating in a research report on Monday, April 27th. Capital One Financial lowered Arc Resources from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 28th. Zacks Research downgraded Arc Resources from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 7th. BMO Capital Markets lowered Arc Resources from an "outperform" rating to a "market perform" rating in a report on Tuesday, April 28th. Finally, Canaccord Genuity Group cut Arc Resources from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 28th. Three equities research 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 data from MarketBeat, the company presently has a consensus rating of "Hold".

Arc Resources Stock Down 2.0%

The stock has a market cap of $13.28 billion, a P/E ratio of 13.10 and a beta of 0.26. 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's fifty day moving average is $22.27 and its 200 day moving average is $20.58.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The energy company reported $0.45 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.48 by ($0.03). The firm had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.18 billion. Arc Resources had a net margin of 19.75% and a return on equity of 16.91%. As a group, equities research analysts forecast 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.