ARC Resources (TSE:ARX) Shares Up 21.7% - Time to Buy?

Key Points

• ARC Resources' stock surged 21.7% on Monday to C$31.36 (intraday high C$31.99) on heavy volume of ~9.84 million shares, about 116% above the average session volume.
• Analysts have trimmed price targets recently, and while the consensus rating is "Moderate Buy", the consensus target of C$28.50 sits below the stock's recent trade price.
• Key fundamentals include a market cap of C$18.09 billion, last quarter EPS of C$0.46 on C$1.58 billion revenue, a PE of 14.2, and a quarterly dividend of C$0.21 (annualized yield 2.7% with ~35.6% payout ratio).

ARC Resources Ltd. (TSE:ARX - Get Free Report)'s stock price shot up 21.7% during trading on Monday . The stock traded as high as C$31.99 and last traded at C$31.36. 9,841,288 shares were traded during mid-day trading, an increase of 116% from the average session volume of 4,551,698 shares. The stock had previously closed at C$25.77.

Analysts Set New Price Targets

Several research firms have commented on ARX. Desjardins cut their price objective on ARC Resources from C$31.00 to C$27.00 and set a "buy" rating on the stock in a research report on Monday, February 9th. BMO Capital Markets cut their price objective on ARC Resources from C$33.00 to C$28.00 and set an "outperform" rating on the stock in a research report on Monday, February 9th. Scotiabank raised ARC Resources to a "hold" rating in a research report on Wednesday, April 1st. Jefferies Financial Group cut their price objective on ARC Resources from C$28.00 to C$27.00 in a research report on Tuesday, January 20th. Finally, Royal Bank Of Canada cut their price objective on ARC Resources from C$32.00 to C$28.00 and set an "outperform" rating on the stock in a research report on Monday, February 9th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of C$28.50.

ARC Resources Stock Performance

The firm has a market capitalization of C$18.09 billion, a PE ratio of 14.20, a price-to-earnings-growth ratio of 0.29 and a beta of -0.30. The company has a debt-to-equity ratio of 58.50, a current ratio of 0.70 and a quick ratio of 0.42. The stock has a 50-day moving average price of C$26.60 and a 200-day moving average price of C$25.63.

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

ARC Resources Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 15th were given a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend was Tuesday, March 31st. ARC Resources's payout ratio is presently 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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