Approach Resources Inc. (AREX) Rating Lowered to Sell at Zacks Investment Research
Approach Resources Inc. (NASDAQ:AREX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Approach Resources Inc. is an independent energy company engaged in the exploration, development, exploitation, production and acquisition of unconventional natural gas and oil properties onshore in the United States and Western Canada. The Company focuses its growth efforts primarily on finding and developing natural gas reserves in known tight gas sands and shale areas. The Company currently operates in Texas, New Mexico and Kentucky and has a non-operating interest in Western Canada. “
Separately, Wunderlich lifted their price target on shares of Approach Resources from $3.50 to $4.00 and gave the company a “hold” rating in a research report on Monday, July 11th.
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Shares of Approach Resources (NASDAQ:AREX) traded down 3.91% during mid-day trading on Tuesday, hitting $3.44. 1,048,702 shares of the company’s stock were exchanged. The firm has a 50 day moving average price of $3.21 and a 200-day moving average price of $2.40. Approach Resources has a 52 week low of $0.60 and a 52 week high of $4.35. The company’s market capitalization is $142.98 million.
Approach Resources (NASDAQ:AREX) last released its quarterly earnings results on Wednesday, August 3rd. The energy company reported ($0.25) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.29) by $0.04. Approach Resources had a negative net margin of 185.20% and a negative return on equity of 5.72%. The company had revenue of $22.43 million for the quarter, compared to analyst estimates of $22.27 million. During the same quarter last year, the firm posted ($0.07) earnings per share. The company’s quarterly revenue was down 41.9% compared to the same quarter last year. On average, equities analysts anticipate that Approach Resources will post ($1.02) EPS for the current year.
Several large investors have recently made changes to their positions in AREX. Spark Investment Management LLC increased its stake in shares of Approach Resources by 202.7% in the first quarter. Spark Investment Management LLC now owns 423,400 shares of the energy company’s stock valued at $491,000 after buying an additional 283,530 shares during the last quarter. Brandes Investment Partners LP increased its stake in shares of Approach Resources by 192.8% in the second quarter. Brandes Investment Partners LP now owns 68,337 shares of the energy company’s stock valued at $144,000 after buying an additional 45,000 shares during the last quarter. GSA Capital Partners LLP bought a new stake in shares of Approach Resources during the second quarter valued at about $281,000. Emerald Acquisition Ltd. bought a new stake in shares of Approach Resources during the second quarter valued at about $1,775,000. Finally, Lone Star Value Management LLC increased its stake in shares of Approach Resources by 150.0% in the first quarter. Lone Star Value Management LLC now owns 125,000 shares of the energy company’s stock valued at $145,000 after buying an additional 75,000 shares during the last quarter. Institutional investors and hedge funds own 53.45% of the company’s stock.
About Approach Resources
Approach Resources Inc is an independent energy company. The Company is focused on the exploration, development, production and acquisition of unconventional oil and gas reserves in the Midland Basin of the greater Permian Basin in West Texas. The Company’s business segment is the exploration and production of oil, natural gas liquids (NGLs) and natural gas.
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