ARC Resources (TSE:ARX) Shares Down 11.1% Following Analyst Downgrade

ARC Resources Ltd. (TSE:ARX) shares were down 11.1% on Friday after National Bankshares downgraded the stock from an outperform rating to a sector perform rating. National Bankshares now has a C$26.00 price target on the stock, down from their previous price target of C$27.00. ARC Resources traded as low as C$21.14 and last traded at C$22.59. Approximately 7,038,157 shares were traded during trading, an increase of 77% from the average daily volume of 3,980,826 shares. The stock had previously closed at C$25.40.

Several other equities analysts have also weighed in on ARX. Capital One Financial raised shares of ARC Resources to a “strong-buy” rating in a research report on Monday, October 27th. UBS Group lowered shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 12th. Scotiabank cut their price objective on shares of ARC Resources from C$30.00 to C$28.00 and set a “sector perform” rating for the company in a research report on Wednesday, January 21st. MKM Partners set a C$34.00 price objective on ARC Resources and gave the stock a “buy” rating in a report on Friday, December 19th. Finally, Roth Mkm raised ARC Resources to a “strong-buy” rating in a research report on Friday, December 19th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, ARC Resources currently has a consensus rating of “Moderate Buy” and an average price target of C$31.77.

ARC Resources News Roundup

Here are the key news stories impacting ARC Resources this week:

• Positive Sentiment: Higher operating cash and a larger cash balance improve liquidity and give ARC more flexibility for capital spending and dividends. Q3 2025 earnings summary
• Positive Sentiment: Significant insider purchases and large institutional buys signal management confidence and strong institutional interest, which can support the stock over time. Insider & institutional activity
• Neutral Sentiment: ARC published its year‑end 2025 results and reserves; the release provides updated production/reserve metrics investors will parse for long‑term value but did not on its own provide a clear catalyst. Year‑end 2025 results & reserves
• Neutral Sentiment: Quarterly headline EPS was C$0.46 with a healthy net margin and ROE; slide deck and press release give details for analysts and modelers. Press release / slide deck
• Negative Sentiment: Analyst downgrade from National Bankshares (outperform → sector perform) and a trimmed C$26 price target reduced near‑term support from at least one sell‑side shop, weighing on sentiment. Analyst downgrade
• Negative Sentiment: Q3/2025 showed a steep revenue decline and an enormous year‑over‑year jump in cost of sales and total liabilities—this balance‑sheet and cost volatility raise execution and financing concerns. Earnings detail and liability increase
• Negative Sentiment: Analyst price‑target dispersion (median targets below some current levels) and published notes lowering expectations add downward pressure on sentiment. Analyst expectations lowered

ARC Resources Stock Down 10.1%

The stock has a 50-day moving average of C$25.18 and a 200-day moving average of C$25.61. The company has a debt-to-equity ratio of 30.05, a current ratio of 1.14 and a quick ratio of 0.42. The firm has a market cap of C$13.14 billion, a price-to-earnings ratio of 9.71, a P/E/G ratio of 0.29 and a beta of 0.00.

ARC Resources (TSE:ARX) last announced its quarterly earnings data on Thursday, February 5th. The oil and gas exploration company reported C$0.46 earnings per share for the quarter. ARC Resources had a return on equity of 14.60% and a net margin of 20.95%. Sell-side analysts predict that ARC Resources Ltd. will post 2.7255139 EPS for the current fiscal year.

ARC Resources Company Profile

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.