Approach Resources Inc. (NASDAQ:AREX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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. “

Other research analysts have also issued reports about the stock. Scotiabank set a $3.00 price objective on shares of Approach Resources and gave the stock a “hold” rating in a research note on Monday, March 27th. ValuEngine upgraded shares of Approach Resources from a “sell” rating to a “hold” rating in a research report on Saturday, July 1st. Finally, Seaport Global Securities cut shares of Approach Resources from a “neutral” rating to a “sell” rating and lowered their price objective for the stock from $3.00 to $0.50 in a research report on Wednesday, June 21st. Two research analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $3.20.

Approach Resources (AREX) traded down 2.61% during trading on Tuesday, hitting $2.99. 750,906 shares of the stock were exchanged. The stock has a 50 day moving average price of $2.77 and a 200-day moving average price of $2.83. Approach Resources has a 12-month low of $1.35 and a 12-month high of $4.35. The firm’s market capitalization is $210.52 million.

Approach Resources (NASDAQ:AREX) last posted its quarterly earnings data on Thursday, May 4th. The energy company reported ($0.11) EPS for the quarter, meeting the consensus estimate of ($0.11). The business had revenue of $26.40 million for the quarter, compared to analysts’ expectations of $25.96 million. Approach Resources had a negative net margin of 181.09% and a negative return on equity of 6.87%. The firm’s revenue was up 50.0% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.32) EPS. On average, equities research analysts anticipate that Approach Resources will post ($0.24) earnings per share for the current fiscal year.

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In related news, insider Wilks Brothers, Llc bought 100,000 shares of the business’s stock in a transaction that occurred on Thursday, June 22nd. The shares were acquired at an average cost of $2.42 per share, with a total value of $242,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Vean J. Gregg III bought 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 10th. The shares were bought at an average cost of $3.00 per share, for a total transaction of $30,000.00. Following the completion of the purchase, the director now owns 131,749 shares of the company’s stock, valued at $395,247. The disclosure for this purchase can be found here. Over the last three months, insiders have purchased 2,861,000 shares of company stock worth $7,860,650. 7.80% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of AREX. Russell Investments Group Ltd. bought a new position in shares of Approach Resources during the fourth quarter valued at about $1,674,000. Allianz Asset Management AG acquired a new position in Approach Resources during the fourth quarter worth $621,000. Edge Wealth Management LLC acquired a new position in Approach Resources during the first quarter worth $100,000. First Manhattan Co. raised its position in Approach Resources by 136.1% in the first quarter. First Manhattan Co. now owns 3,664,779 shares of the energy company’s stock worth $12,386,000 after buying an additional 2,112,371 shares during the period. Finally, Janney Montgomery Scott LLC acquired a new position in Approach Resources during the first quarter worth $258,000. 25.64% of the stock is currently owned by institutional investors and hedge funds.

Approach Resources Company Profile

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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