Zacks Investment Research Downgrades Approach Resources Inc. (AREX) to Sell
Approach Resources Inc. (NASDAQ:AREX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report 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 boosted their price target on shares of Approach Resources from $3.50 to $4.00 and gave the company a “hold” rating in a research note on Monday, July 11th.
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Approach Resources (NASDAQ:AREX) traded down 3.63% during trading on Tuesday, reaching $3.45. 991,704 shares of the company were exchanged. The stock’s market capitalization is $143.40 million. Approach Resources has a one year low of $0.60 and a one year high of $4.35. The firm’s 50 day moving average price is $3.21 and its 200-day moving average price is $2.40.
Approach Resources (NASDAQ:AREX) last announced 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. The business earned $22.43 million during the quarter, compared to analyst estimates of $22.27 million. Approach Resources had a negative net margin of 185.20% and a negative return on equity of 5.72%. Approach Resources’s quarterly revenue was down 41.9% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.07) EPS. On average, equities research analysts predict that Approach Resources will post ($1.02) earnings per share for the current year.
Institutional investors have recently bought and sold shares of the company. LMR Partners LLP purchased a new position in Approach Resources during the second quarter worth about $113,000. Brandes Investment Partners LP increased its position in Approach Resources by 192.8% in the second quarter. Brandes Investment Partners LP now owns 68,337 shares of the energy company’s stock worth $144,000 after buying an additional 45,000 shares in the last quarter. Lone Star Value Management LLC increased its position in 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 worth $145,000 after buying an additional 75,000 shares in the last quarter. Laurion Capital Management LP purchased a new position in Approach Resources during the second quarter worth about $210,000. Finally, Dimensional Fund Advisors LP purchased a new position in Approach Resources during the second quarter worth about $259,000. 53.45% of the stock is currently owned by hedge funds and other institutional investors.
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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