Arc Resources (OTCMKTS:AETUF) Shares Gap Up - What's Next?

Key Points

• Shares gapped up: Arc Resources stock opened at $22.27 after closing at $18.85 and last traded at $23.13 on volume of 110,572 shares, reflecting a sharp pre-market move.
• Mixed analyst sentiment but consensus positive: Recent upgrades and downgrades from firms including Scotiabank, CIBC, Zacks and Raymond James leave the stock with an average rating of "Moderate Buy" (2 Strong Buy, 5 Buy, 5 Hold).
• Solid fundamentals and earnings beat: Market cap ~$13.11B, P/E 14.84, the company reported Q earnings of $0.32 (in line) and revenue of $1.15B (above estimates), with a net margin of 22.03% and analysts projecting ~2.02 EPS for the year.

Shares of Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $18.85, but opened at $22.27. Arc Resources shares last traded at $23.1308, with a volume of 110,572 shares.

Analysts Set New Price Targets

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

Arc Resources Stock Performance

The firm has a market capitalization of $13.11 billion, a price-to-earnings ratio of 14.84, a P/E/G ratio of 0.74 and a beta of 0.20. The stock's fifty day moving average is $19.37 and its two-hundred day moving average is $18.55. 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 earnings results on Thursday, February 5th. The energy company reported $0.32 earnings per share for the quarter, hitting analysts' consensus estimates of $0.32. The business had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.07 billion. Arc Resources had a net margin of 22.03% and a return on equity of 15.49%. On average, analysts predict that Arc Resources Ltd. will post 2.02 earnings per share 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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