Arc Resources (OTCMKTS:AETUF) Shares Gap Down - Time to Sell?

Key Points

• Arc Resources gapped down before the open, slipping from a $18.8280 close to an $18.25 open and last trading around $18.49 on light volume (3,936 shares).
• The stock carries a consensus rating of Moderate Buy (2 Strong Buy, 5 Buy, 5 Hold), with recent mixed analyst moves—Zacks upgraded to strong-buy while CIBC, Raymond James and National Bank issued downgrades in February.
• Fundamentals are solid: market cap ~$10.37B, PE 11.74 and debt/equity 0.29, and the company reported Q4 EPS of $0.32 (met estimates) with a revenue beat of $1.15B versus $1.07B expected.

Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $18.8280, but opened at $18.25. Arc Resources shares last traded at $18.49, with a volume of 3,936 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Zacks Research raised Arc Resources from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 6th. Canadian Imperial Bank of Commerce downgraded Arc Resources from an "outperform" rating to a "hold" rating in a research report on Friday, February 6th. Scotiabank raised Arc Resources to a "hold" rating in a research report on Wednesday, April 1st. Raymond James Financial downgraded Arc Resources from a "moderate buy" rating to a "hold" rating in a research report on Friday, February 6th. Finally, National Bank Financial lowered shares of Arc Resources from an "outperform" rating to a "sector perform" rating in a research note on Friday, February 6th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, Arc Resources currently has a consensus rating of "Moderate Buy".

Arc Resources Stock Performance

The firm's 50 day moving average price is $19.23 and its 200-day moving average price is $18.56. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.69 and a current ratio of 0.70. The firm has a market capitalization of $10.37 billion, a PE ratio of 11.74, a price-to-earnings-growth ratio of 0.95 and a beta of 0.20.

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