Approach Resources (AREX) Upgraded to Buy by Zacks Investment Research

Approach Resources (NASDAQ:AREX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday, Zacks.com reports. The brokerage presently has a $0.25 price objective on the energy company’s stock.

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 equities analysts have also recently issued research reports about the stock. ValuEngine raised shares of Approach Resources from a “sell” rating to a “hold” rating in a research report on Monday, February 4th. EuroPacific Canada cut shares of Approach Resources from a “neutral” rating to a “sell” rating in a research report on Tuesday, March 19th. Finally, Imperial Capital cut shares of Approach Resources from an “in-line” rating to an “underperform” rating and dropped their price target for the company from $3.50 to $0.40 in a research report on Wednesday, March 20th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $1.22.

Shares of NASDAQ AREX opened at $0.25 on Tuesday. Approach Resources has a fifty-two week low of $0.23 and a fifty-two week high of $3.18. The stock has a market capitalization of $24.30 million, a P/E ratio of -0.96 and a beta of 2.74. The company has a current ratio of 0.08, a quick ratio of 0.77 and a debt-to-equity ratio of 0.16.

Approach Resources (NASDAQ:AREX) last announced its quarterly earnings results on Thursday, May 9th. The energy company reported ($0.09) earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.11) by $0.02. Approach Resources had a negative net margin of 28.00% and a negative return on equity of 4.46%. The business had revenue of $19.24 million for the quarter, compared to analysts’ expectations of $21.11 million. As a group, sell-side analysts expect that Approach Resources will post -0.32 earnings per share for the current year.

Several institutional investors have recently bought and sold shares of the business. Geode Capital Management LLC lifted its position in shares of Approach Resources by 6.6% during the 4th quarter. Geode Capital Management LLC now owns 531,253 shares of the energy company’s stock worth $463,000 after buying an additional 32,712 shares in the last quarter. Municipal Employees Retirement System of Michigan bought a new position in shares of Approach Resources during the 4th quarter worth approximately $160,000. SG Americas Securities LLC lifted its position in shares of Approach Resources by 260.0% during the 1st quarter. SG Americas Securities LLC now owns 88,016 shares of the energy company’s stock worth $31,000 after buying an additional 63,566 shares in the last quarter. Finally, Rhumbline Advisers lifted its position in shares of Approach Resources by 34.6% during the 4th quarter. Rhumbline Advisers now owns 60,842 shares of the energy company’s stock worth $53,000 after buying an additional 15,640 shares in the last quarter. 69.70% of the stock is currently owned by hedge funds and other institutional investors.

Approach Resources Company Profile

Approach Resources, Inc, an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves. The company's properties are primarily located in the Permian Basin in west Texas. It also owns interests in east Texas Basin. As of December 31, 2018, its estimated proved reserves were 180.1 million barrels of oil equivalent located in Crockett and Schleicher counties, Texas.

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