ARC Resources (TSE:ARX) Shares Down 12.7% After Analyst Downgrade

ARC Resources Ltd. (TSE:ARX)’s share price dropped 12.7% during trading 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$22.18. Approximately 8,033,350 shares changed hands during mid-day trading, an increase of 100% from the average daily volume of 4,012,499 shares. The stock had previously closed at C$25.40.

Other research analysts also recently issued research reports about the company. Roth Mkm upgraded ARC Resources to a “strong-buy” rating in a research note on Friday, December 19th. Jefferies Financial Group lowered their price target on shares of ARC Resources from C$28.00 to C$27.00 in a report on Tuesday, January 20th. 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. Capital One Financial raised shares of ARC Resources to a “strong-buy” rating in a research note on Monday, October 27th. Finally, Canadian Imperial Bank of Commerce lowered their target price on shares of ARC Resources from C$34.00 to C$31.50 in a research note on Wednesday, October 15th. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, ARC Resources presently has a consensus rating of “Moderate Buy” and an average target price of C$31.77.

ARC Resources News Summary

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 Trading Down 10.1%

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

ARC Resources (TSE:ARX) last issued its quarterly earnings results on Thursday, February 5th. The oil and gas exploration company reported C$0.46 EPS for the quarter. ARC Resources had a net margin of 20.95% and a return on equity of 14.60%. Analysts anticipate that ARC Resources Ltd. will post 2.7255139 EPS for the current year.

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.