National Bankshares Downgrades ARC Resources (TSE:ARX) to Sector Perform

ARC Resources (TSE:ARX) was downgraded by equities research analysts at National Bankshares from an “outperform” rating to a “sector perform” rating in a research note issued on Friday,BayStreet.CA reports. They presently have a C$26.00 price objective on the oil and gas exploration company’s stock, down from their prior price objective of C$27.00. National Bankshares’ price target would suggest a potential upside of 13.89% from the company’s previous close.

ARX has been the topic of a number of other reports. Capital One Financial raised ARC Resources to a “strong-buy” rating in a research note on Monday, October 27th. Roth Mkm upgraded shares of ARC Resources to a “strong-buy” rating in a report on Friday, December 19th. UBS Group downgraded shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 12th. Scotiabank reduced their price objective on shares of ARC Resources from C$30.00 to C$28.00 and set a “sector perform” rating on the stock in a research note on Wednesday, January 21st. Finally, Jefferies Financial Group lowered their target price on shares of ARC Resources from C$28.00 to C$27.00 in a research note on Tuesday, January 20th. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of C$31.77.

ARC Resources Stock Performance

TSE ARX opened at C$22.83 on Friday. The company has a market capitalization of C$13.14 billion, a price-to-earnings ratio of 9.71, a PEG ratio of 0.29 and a beta of 0.00. ARC Resources has a twelve month low of C$21.14 and a twelve month high of C$31.56. The stock has a fifty day simple moving average of C$25.18 and a 200 day simple moving average of C$25.61. The company has a quick ratio of 0.42, a current ratio of 1.14 and a debt-to-equity ratio of 30.05.

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

Key ARC Resources News

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

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.