Arc Resources (OTCMKTS:AETUF) Stock Crosses Below 50-Day Moving Average - Should You Sell?

Key Points

• Arc Resources Ltd. (OTCMKTS:AETUF) stock price has dropped below its 50-day moving average, signaling potential concerns, as it traded at $19.08, down from a 50-day average of $19.77.
• The company reported earnings of $0.49 per share for the last quarter, surpassing estimates of $0.36, but revealed revenues of $801.14 million which fell short of expectations of $1.37 billion.
• Arc Resources has announced a quarterly dividend of $0.19 per share, generating a dividend yield of 4.0% with a payout ratio of 30.77%.

Arc Resources Ltd. (OTCMKTS:AETUF - Get Free Report)'s share price crossed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of $19.77 and traded as low as $18.88. Arc Resources shares last traded at $19.08, with a volume of 21,232 shares.

Analyst Upgrades and Downgrades

AETUF has been the subject of several recent analyst reports. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Arc Resources in a report on Friday, May 16th. Wall Street Zen cut shares of Arc Resources from a "strong-buy" rating to a "buy" rating in a report on Monday, August 18th. Finally, National Bankshares reissued an "outperform" rating on shares of Arc Resources in a report on Friday, May 16th. One research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy".

Arc Resources Trading Down 2.3%

The firm has a market capitalization of $10.30 billion, a P/E ratio of 9.74, a price-to-earnings-growth ratio of 0.51 and a beta of 0.30. The stock's 50-day simple moving average is $19.62 and its two-hundred day simple moving average is $19.74. The company has a debt-to-equity ratio of 0.08, a current ratio of 0.60 and a quick ratio of 0.59.

Arc Resources (OTCMKTS:AETUF - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The energy company reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.36 by $0.13. The business had revenue of $801.14 million during the quarter, compared to analyst estimates of $1.37 billion. Arc Resources had a net margin of 30.77% and a return on equity of 18.83%. Equities research analysts expect that Arc Resources Ltd. will post 2.23 EPS for the current year.

Arc Resources Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were given a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 4.3%. Arc Resources's payout ratio is currently 30.22%.

About Arc Resources

ARC Resources Ltd. engages in the acquiring and developing crude oil, natural gas, condensate, and natural gas liquids in Canada. It primarily holds interests in the Montney basin located in Alberta and northeast British Columbia. ARC Resources Ltd. was founded in 1996 and is based in Calgary, Canada.