ARC Resources (TSE:ARX) Trading Down 11.1% After Analyst Downgrade

ARC Resources Ltd. (TSE:ARX)’s share price dropped 11.1% during trading on Friday after Natl Bk Canada downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as C$21.14 and last traded at C$22.59. Approximately 7,038,157 shares traded hands during trading, an increase of 77% from the average daily volume of 3,980,826 shares. The stock had previously closed at C$25.40.

Other equities analysts have also recently issued research reports about the company. Jefferies Financial Group reduced their price target on ARC Resources from C$28.00 to C$27.00 in a report on Tuesday, January 20th. Canadian Imperial Bank of Commerce cut their price objective on ARC Resources from C$34.00 to C$31.50 in a research report on Wednesday, October 15th. Roth Mkm upgraded ARC Resources to a “strong-buy” rating in a research note on Friday, December 19th. Cibc Captl Mkts cut ARC Resources from a “strong-buy” rating to a “hold” rating in a research note on Friday. Finally, National Bankshares downgraded ARC Resources from an “outperform” rating to a “sector perform” rating and cut their price target for the company from C$27.00 to C$26.00 in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of C$31.77.

Key Stories Impacting ARC Resources

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 Trading Down 10.1%

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 company has a market capitalization of C$13.14 billion, a price-to-earnings ratio of 9.71, a P/E/G ratio of 0.29 and a beta of 0.00. The business’s 50-day moving average price is C$25.18 and its two-hundred day moving average price is C$25.61.

ARC Resources (TSE:ARX) last posted its quarterly earnings data 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%. Research analysts predict that ARC Resources Ltd. will post 2.7255139 earnings per share for the current year.

ARC Resources Company Profile

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.