ARC Resources (TSE:ARX) Shares Pass Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• ARC Resources shares recently crossed above their 200-day moving average (200‑day MA C$25.66), trading as high as C$26.71 and last at C$25.70 on volume of 4,364,826 shares.
• Analysts are mixed after recent downgrades and target cuts; the consensus is a Moderate Buy with an average price target of C$29.00.
• The company shows solid fundamentals — market cap C$14.66B, P/E 11.74, PEG 0.29, ROE 15.5% and recent quarterly EPS C$0.46 — and pays a C$0.21 quarterly dividend (annualized yield 3.3%, payout ratio 35.6%).

ARC Resources Ltd. (TSE:ARX - Get Free Report) shares crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of C$25.66 and traded as high as C$26.71. ARC Resources shares last traded at C$25.70, with a volume of 4,364,826 shares traded.

Analyst Ratings Changes

A number of analysts have commented on the company. UBS Group cut ARC Resources from a "strong-buy" rating to a "hold" rating in a research report on Friday, December 12th. Desjardins lowered their price target on ARC Resources from C$31.00 to C$27.00 and set a "buy" rating for the company in a research report on Monday, February 9th. Royal Bank Of Canada lowered their price target on ARC Resources from C$32.00 to C$28.00 and set an "outperform" rating for the company in a research report on Monday, February 9th. Roth Mkm raised ARC Resources to a "strong-buy" rating in a research report on Friday, December 19th. Finally, Raymond James Financial cut ARC Resources from a "moderate buy" rating to a "hold" rating and lowered their price target for the stock from C$31.00 to C$28.00 in a research report on Monday, February 9th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of C$29.00.

ARC Resources Trading Down 2.7%

The firm has a market cap of C$14.66 billion, a price-to-earnings ratio of 11.74, a PEG ratio of 0.29 and a beta of -0.30. The company has a fifty day moving average price of C$26.35 and a 200-day moving average price of C$25.66. The company has a current ratio of 0.70, a quick ratio of 0.42 and a debt-to-equity ratio of 58.50.

ARC Resources (TSE:ARX - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The oil and gas exploration company reported C$0.46 earnings per share (EPS) for the quarter. The business had revenue of C$1.58 billion during the quarter. ARC Resources had a return on equity of 15.52% and a net margin of 20.99%. As a group, research analysts expect that ARC Resources Ltd. will post 2.7255139 EPS for the current year.

ARC Resources Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 15th will be issued a $0.21 dividend. This represents a $0.84 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Tuesday, March 31st. ARC Resources's payout ratio is 35.62%.

About ARC Resources

ARC Resources is an independent energy company engaged in the acquisition, exploration, development, and production of conventional oil and natural gas in Western Canada. The company produces light, medium, and heavy crude, condensate, natural gas liquids, and natural gas. Production averaged 163.6 thousand barrels of oil equivalent per day in 2020, and the company estimates that it holds approximately 879 million boe of proven and probable crude oil and natural gas reserves.

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