ARC Resources (TSE:ARX) Stock Price Down 12.7% After Analyst Downgrade

ARC Resources Ltd. (TSE:ARX)’s stock price traded down 12.7% during mid-day trading on Friday after Natl Bk Canada downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as C$21.14 and last traded at C$22.18. 8,033,350 shares traded hands during trading, an increase of 100% from the average session volume of 4,012,499 shares. The stock had previously closed at C$25.40.

A number of other brokerages also recently issued reports on ARX. MKM Partners set a C$34.00 price target on ARC Resources and gave the company a “buy” rating in a research report on Friday, December 19th. Roth Mkm upgraded shares of ARC Resources to a “strong-buy” rating in a research report on Friday, December 19th. Scotiabank dropped their price objective on shares of ARC Resources from C$30.00 to C$28.00 and set a “sector perform” rating for the company in a report on Wednesday, January 21st. National Bankshares cut ARC Resources from an “outperform” rating to a “sector perform” rating and reduced their target price for the company from C$27.00 to C$26.00 in a research note on Friday. Finally, Canadian Imperial Bank of Commerce lowered their price target on ARC Resources from C$34.00 to C$31.50 in a research report on Wednesday, October 15th. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, ARC Resources currently has an average rating of “Moderate Buy” and a consensus target price of C$31.77.

More 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

ARC Resources Price Performance

The firm’s 50 day simple moving average is C$25.18 and its two-hundred day simple moving average is C$25.61. The company has a debt-to-equity ratio of 30.05, a current ratio of 1.14 and a quick ratio of 0.42. The firm has a market capitalization of C$13.14 billion, a P/E ratio of 9.71, a P/E/G ratio of 0.29 and a beta of 0.00.

ARC Resources (TSE:ARX) last announced its quarterly earnings data on Thursday, February 5th. The oil and gas exploration company reported C$0.46 earnings per share (EPS) for the quarter. ARC Resources had a return on equity of 14.60% and a net margin of 20.95%. As a group, analysts predict that ARC Resources Ltd. will post 2.7255139 earnings per share for the current year.

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.