ARC Resources (TSE:ARX) Trading Down 11.7% on Analyst Downgrade

ARC Resources Ltd. (TSE:ARX)’s share price dropped 11.7% 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$22.43. Approximately 7,513,591 shares were traded during trading, an increase of 87% from the average daily volume of 4,012,499 shares. The stock had previously closed at C$25.40.

A number of other equities analysts also recently weighed in on the stock. MKM Partners set a C$34.00 target price on shares of ARC Resources and gave the stock a “buy” rating in a research note on Friday, December 19th. Cibc Captl Mkts downgraded ARC Resources from a “strong-buy” rating to a “hold” rating in a report on Friday. Roth Mkm raised ARC Resources to a “strong-buy” rating in a research report on Friday, December 19th. Canadian Imperial Bank of Commerce dropped their price objective on ARC Resources from C$34.00 to C$31.50 in a research note on Wednesday, October 15th. Finally, Scotiabank cut their target price on ARC Resources from C$30.00 to C$28.00 and set a “sector perform” rating on the stock in a research report on Wednesday, January 21st. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, ARC Resources has an average rating of “Moderate Buy” and a consensus price target of C$31.77.

Key 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 Stock Performance

The company has a debt-to-equity ratio of 30.05, a quick ratio of 0.42 and a current ratio of 1.14. The company has a 50 day moving average price of C$25.18 and a 200 day moving average price of C$25.61. 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.

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