ARC Resources (TSE:ARX) Hits New 12-Month High - Should You Buy?

Key Points

• ARC Resources reached a new 52-week high, trading as high as C$33.73 and last changing hands at C$33.68, above its prior close of C$33.43.
• Analyst sentiment is mixed but centers on a “Hold” consensus, with an average price target of C$30.35—below the current share price. Recent ratings included several downgrades despite higher individual price targets.
• The company reported C$0.62 in quarterly EPS on C$2.16 billion in revenue, with a 16.64% return on equity and 19.29% net margin. ARC Resources is a large, low-cost Montney oil and gas producer known for paying dividends.

ARC Resources Ltd. (TSE:ARX - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The stock traded as high as C$33.73 and last traded at C$33.68, with a volume of 144425 shares trading hands. The stock had previously closed at C$33.43.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ARX. Canadian Imperial Bank of Commerce lowered ARC Resources from a "neutral" rating to a "tender" rating and increased their price objective for the stock from C$29.00 to C$32.00 in a report on Tuesday, April 28th. BMO Capital Markets cut shares of ARC Resources from an "outperform" rating to a "market perform" rating and boosted their price objective for the stock from C$30.00 to C$32.00 in a research note on Tuesday, April 28th. Raymond James Financial raised their target price on ARC Resources from C$29.00 to C$32.80 in a report on Tuesday, April 28th. ATB Cormark Capital Markets lowered shares of ARC Resources from an "outperform" rating to a "tender" rating and set a C$31.00 price target on the stock. in a research report on Tuesday, April 28th. Finally, TD Securities lowered ARC Resources from a "strong-buy" rating to a "strong sell" rating in a report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of C$30.35.

ARC Resources Price Performance

The stock has a market capitalization of C$19.09 billion, a P/E ratio of 13.66, a PEG ratio of 0.29 and a beta of -0.37. The company's 50 day simple moving average is C$31.59 and its two-hundred day simple moving average is C$29.15. The company has a debt-to-equity ratio of 39.16, a current ratio of 0.88 and a quick ratio of 0.42.

ARC Resources (TSE:ARX - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The oil and gas exploration company reported C$0.62 earnings per share (EPS) for the quarter. ARC Resources had a return on equity of 16.64% and a net margin of 19.29%.The firm had revenue of C$2.16 billion during the quarter. As a group, equities analysts expect that ARC Resources Ltd. will post 2.7255139 EPS for the current fiscal year.

About ARC Resources

ARC Resources Ltd. is a pure-play Montney producer and one of Canada's largest dividend-paying energy companies, featuring low-cost operations. ARC's investment-grade credit profile is supported by commodity and geographic diversity and robust risk management practices around all aspects of the business.

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