Approach Resources (NASDAQ:AREX) Lowered to “Sell” at Zacks Investment Research

Approach Resources (NASDAQ:AREX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday, May 14th.

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. “

Several other equities analysts have also issued reports on AREX. KLR Group lowered Approach Resources from a “buy” rating to a “hold” rating and set a $3.00 target price on the stock. in a research note on Monday, May 14th. ValuEngine raised Approach Resources from a “strong sell” rating to a “sell” rating in a research report on Wednesday, May 2nd. Finally, BidaskClub lowered Approach Resources from a “buy” rating to a “hold” rating in a research report on Friday, February 9th. Two investment analysts have rated the stock with a sell rating and seven have assigned a hold rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $2.92.

Shares of Approach Resources opened at $3.00 on Monday, Marketbeat.com reports. Approach Resources has a 1-year low of $2.18 and a 1-year high of $4.21. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.47 and a quick ratio of 0.47. The company has a market cap of $286.72 million, a PE ratio of -8.33 and a beta of 2.76.

Approach Resources (NASDAQ:AREX) last issued its earnings results on Wednesday, May 2nd. The energy company reported ($0.07) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.06) by ($0.01). The company had revenue of $28.77 million during the quarter, compared to analysts’ expectations of $29.15 million. Approach Resources had a net margin of 19.45% and a negative return on equity of 5.10%. sell-side analysts forecast that Approach Resources will post -0.3 earnings per share for the current fiscal year.

Large investors have recently added to or reduced their stakes in the stock. Millennium Management LLC grew its stake in Approach Resources by 163.3% during the 4th quarter. Millennium Management LLC now owns 56,339 shares of the energy company’s stock worth $167,000 after buying an additional 34,939 shares during the last quarter. Alliancebernstein L.P. grew its stake in Approach Resources by 437.9% during the 4th quarter. Alliancebernstein L.P. now owns 65,090 shares of the energy company’s stock worth $193,000 after buying an additional 52,990 shares during the last quarter. KBC Group NV purchased a new position in Approach Resources during the 1st quarter worth approximately $268,000. GSA Capital Partners LLP grew its stake in Approach Resources by 497.7% during the 1st quarter. GSA Capital Partners LLP now owns 109,406 shares of the energy company’s stock worth $286,000 after buying an additional 91,100 shares during the last quarter. Finally, Deutsche Bank AG grew its stake in shares of Approach Resources by 145.2% in the 4th quarter. Deutsche Bank AG now owns 98,569 shares of the energy company’s stock valued at $290,000 after purchasing an additional 58,371 shares during the last quarter. Hedge funds and other institutional investors own 20.92% of the company’s stock.

About Approach Resources

Approach Resources, Inc, an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves in the United States. The company's properties are primarily located in the Permian Basin in west Texas. It also owns interests in east Texas Basin.

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