Roth Capital Issues Pessimistic Estimate for ARQ Earnings

Key Points

• Roth Capital has revised its FY2025 EPS estimate for Arq, Inc. down to $0.00 per share, compared to a prior forecast of $0.07.
• Other analysts have shown a positive outlook, with Craig Hallum rating Arq as a "buy" with a target price of $10.00 per share.
• Recent insider activity includes CEO Robert E. Rasmus purchasing 25,000 shares, increasing his ownership stake in the company.

Arq, Inc. (NASDAQ:ARQ - Free Report) - Stock analysts at Roth Capital lowered their FY2025 earnings per share (EPS) estimates for shares of ARQ in a research note issued to investors on Wednesday, August 13th. Roth Capital analyst G. Sweeney now anticipates that the company will earn $0.00 per share for the year, down from their prior estimate of $0.07. The consensus estimate for ARQ's current full-year earnings is ($0.13) per share. Roth Capital also issued estimates for ARQ's FY2027 earnings at $0.78 EPS.

ARQ (NASDAQ:ARQ - Get Free Report) last released its quarterly earnings results on Monday, August 11th. The company reported ($0.01) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.01). The firm had revenue of $28.58 million for the quarter, compared to the consensus estimate of $25.56 million. ARQ had a negative return on equity of 0.07% and a negative net margin of 1.40%.

Several other analysts have also recently commented on ARQ. Fearnley Fonds raised ARQ to a "strong-buy" rating in a report on Friday, June 27th. Wall Street Zen downgraded ARQ from a "hold" rating to a "sell" rating in a research note on Saturday. Craig Hallum began coverage on ARQ in a research note on Tuesday, July 15th. They issued a "buy" rating and a $10.00 price objective for the company. Finally, Canaccord Genuity Group raised their price objective on ARQ from $8.00 to $10.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. One analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $10.00.

ARQ Price Performance

Shares of ARQ traded down $0.06 during mid-day trading on Friday, hitting $7.01. The company's stock had a trading volume of 201,552 shares, compared to its average volume of 255,038. The company has a current ratio of 1.10, a quick ratio of 0.65 and a debt-to-equity ratio of 0.04. The firm has a 50-day simple moving average of $5.80 and a 200 day simple moving average of $5.03. The firm has a market capitalization of $299.26 million, a P/E ratio of -175.25 and a beta of 1.78. ARQ has a 1-year low of $3.34 and a 1-year high of $8.11.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ARQ. JPMorgan Chase & Co. lifted its stake in shares of ARQ by 956.7% during the fourth quarter. JPMorgan Chase & Co. now owns 114,735 shares of the company's stock worth $869,000 after purchasing an additional 103,877 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of ARQ by 11.4% during the fourth quarter. Geode Capital Management LLC now owns 664,430 shares of the company's stock worth $5,031,000 after purchasing an additional 67,962 shares in the last quarter. Wells Fargo & Company MN lifted its stake in shares of ARQ by 66.9% during the fourth quarter. Wells Fargo & Company MN now owns 18,209 shares of the company's stock worth $138,000 after purchasing an additional 7,298 shares in the last quarter. Cerity Partners LLC acquired a new position in shares of ARQ during the fourth quarter worth about $215,000. Finally, Invesco Ltd. lifted its stake in shares of ARQ by 3,981.1% during the fourth quarter. Invesco Ltd. now owns 708,324 shares of the company's stock worth $5,362,000 after purchasing an additional 690,968 shares in the last quarter. Institutional investors and hedge funds own 18.49% of the company's stock.

Insider Activity at ARQ

In other news, Director Richard Campbell-Breeden bought 75,000 shares of ARQ stock in a transaction that occurred on Friday, May 23rd. The shares were purchased at an average price of $4.10 per share, for a total transaction of $307,500.00. Following the completion of the acquisition, the director owned 226,148 shares of the company's stock, valued at $927,206.80. The trade was a 49.62% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jeremy Blank bought 50,000 shares of ARQ stock in a transaction that occurred on Friday, May 23rd. The stock was purchased at an average price of $4.10 per share, for a total transaction of $205,000.00. Following the acquisition, the director directly owned 374,955 shares of the company's stock, valued at $1,537,315.50. The trade was a 15.39% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have bought 150,000 shares of company stock worth $615,000 and have sold 10,167 shares worth $52,868. 23.89% of the stock is owned by insiders.

ARQ Company Profile

Arq, Inc is a holding company. It engages in the provision of environmental and emission control equipment to the power generation industry. The company operates through the following Segments: Refined Coal and Advanced Purification Technologies. The Refined Coal segment includes the Tinuum Group, Tinuum Services, and GWN Manager.