Zacks Investment Research downgraded shares of Approach Resources Inc. (NASDAQ:AREX) 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. “
A number of other research analysts have also recently commented on AREX. Scotiabank set a $3.00 price objective on Approach Resources and gave the stock a hold rating in a research note on Monday, March 27th. ValuEngine cut Approach Resources from a hold rating to a sell rating in a research note on Thursday, June 1st. Finally, Seaport Global Securities cut Approach Resources from a neutral rating to a sell rating and reduced their price objective for the stock from $3.00 to $0.50 in a research note on Wednesday, June 21st. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the company. The stock presently has an average rating of Hold and an average target price of $3.20.
Shares of Approach Resources (NASDAQ AREX) opened at 3.00 on Tuesday. The stock’s market cap is $211.23 million. Approach Resources has a one year low of $1.35 and a one year high of $4.35. The firm’s 50-day moving average price is $2.84 and its 200 day moving average price is $2.77.
Approach Resources (NASDAQ:AREX) last issued its earnings results on Thursday, May 4th. The energy company reported ($0.11) earnings per share for the quarter, meeting the Zacks’ consensus estimate of ($0.11). The firm had revenue of $26.40 million for the quarter, compared to analysts’ expectations of $25.96 million. Approach Resources had a negative return on equity of 6.87% and a negative net margin of 181.09%. The firm’s revenue for the quarter was up 50.0% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.32) earnings per share. Equities research analysts expect that Approach Resources will post ($0.24) EPS for the current fiscal year.
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In other Approach Resources news, insider Wilks Brothers, Llc purchased 100,000 shares of the business’s stock in a transaction that occurred on Thursday, June 22nd. The shares were acquired at an average price of $2.42 per share, for a total transaction of $242,000.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Vean J. Gregg III purchased 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 10th. The stock was acquired at an average price of $3.00 per share, for a total transaction of $30,000.00. Following the purchase, the director now owns 131,749 shares of the company’s stock, valued at approximately $395,247. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 2,861,000 shares of company stock worth $7,860,650. 7.80% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cpcm LLC acquired a new position in Approach Resources during the first quarter valued at approximately $246,000. Goldman Sachs Group Inc. boosted its position in Approach Resources by 447.7% in the first quarter. Goldman Sachs Group Inc. now owns 706,338 shares of the energy company’s stock valued at $1,773,000 after buying an additional 577,368 shares during the period. Marathon Asset Management LP boosted its position in Approach Resources by 9.3% in the first quarter. Marathon Asset Management LP now owns 1,170,382 shares of the energy company’s stock valued at $2,937,000 after buying an additional 100,000 shares during the period. Jane Street Group LLC acquired a new position in Approach Resources during the first quarter valued at approximately $198,000. Finally, Columbia Pacific Advisors LLC acquired a new position in Approach Resources during the first quarter valued at approximately $321,000. Institutional investors and hedge funds own 25.64% of the company’s stock.
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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