Arc Resources (OTCMKTS:AETUF) Shares Gap Down After Analyst Downgrade

Shares of Arc Resources Ltd. (OTCMKTS:AETUF) gapped down prior to trading on Friday after Natl Bk Canada downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $18.56, but opened at $17.60. Arc Resources shares last traded at $16.10, with a volume of 59,590 shares trading hands.

Several other equities research analysts also recently issued reports on the stock. Canadian Imperial Bank of Commerce downgraded shares of Arc Resources from an “outperform” rating to a “neutral” rating in a research note on Friday. National Bankshares lowered Arc Resources from an “outperform” rating to a “sector perform” rating in a research report on Friday. Capital One Financial raised Arc Resources to a “strong-buy” rating in a report on Monday, October 27th. Cantor Fitzgerald began coverage on Arc Resources in a report on Monday, October 27th. They set an “overweight” rating on the stock. Finally, Raymond James Financial lowered Arc Resources from an “outperform” rating to a “market perform” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold”.

Arc Resources Stock Down 10.0%

The firm’s 50 day simple moving average is $18.28 and its 200 day simple moving average is $18.48. The company has a market cap of $9.55 billion, a price-to-earnings ratio of 10.71, a price-to-earnings-growth ratio of 1.23 and a beta of 0.29. The company has a quick ratio of 0.53, a current ratio of 0.54 and a debt-to-equity ratio of 0.28.

Arc Resources (OTCMKTS:AETUF) last issued its quarterly earnings data on Thursday, February 5th. The energy company reported $0.32 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.32. Arc Resources had a return on equity of 15.52% and a net margin of 22.03%.The business had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.07 billion. Sell-side analysts anticipate that Arc Resources Ltd. will post 2.23 EPS for the current fiscal year.

About Arc Resources

Arc Resources Ltd., trading on the OTC Markets under the ticker AETUF, is a Canadian energy company primarily engaged in the exploration, development and production of natural gas, condensate and natural gas liquids. Headquartered in Calgary, Alberta, the company’s core operations are concentrated in the Montney formation, a premier resource play extending across northeastern British Columbia and northwestern Alberta. Arc’s portfolio emphasizes liquids-rich gas production supported by proprietary midstream infrastructure, including gas processing facilities, pipelines and water management systems.

Since its formation in the mid-1990s as Arc Energy Trust and its conversion to a corporation in 2015, Arc Resources has pursued a disciplined growth strategy focused on operational efficiency, cost control and sustainable development.