Zacks Investment Research lowered shares of Approach Resources Inc. (NASDAQ:AREX) from a buy rating to a hold rating in a report issued on Friday morning.

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 analysts also recently issued reports on the company. ValuEngine downgraded Approach Resources from a sell rating to a strong sell rating in a research note on Friday, September 1st. KeyCorp reissued a hold rating on shares of Approach Resources in a research note on Thursday, October 12th. BidaskClub downgraded Approach Resources from a hold rating to a sell rating in a research note on Thursday, July 27th. Imperial Capital assumed coverage on Approach Resources in a research note on Friday, August 18th. They issued an in-line rating and a $2.50 price target on the stock. Finally, Robert W. Baird reaffirmed a hold rating and issued a $4.00 target price on shares of Approach Resources in a research report on Tuesday, September 26th. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $2.75.

Approach Resources (AREX) traded down $0.03 on Friday, hitting $2.45. The company’s stock had a trading volume of 157,458 shares, compared to its average volume of 456,912. Approach Resources has a 1 year low of $1.93 and a 1 year high of $4.33. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.41 and a current ratio of 0.41.

Approach Resources (NASDAQ:AREX) last released its quarterly earnings results on Wednesday, November 1st. The energy company reported ($0.08) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.09) by $0.01. Approach Resources had a negative return on equity of 6.39% and a negative net margin of 165.95%. The firm had revenue of $25.61 million for the quarter, compared to the consensus estimate of $25.74 million. analysts expect that Approach Resources will post -0.39 EPS for the current fiscal year.

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Several large investors have recently added to or reduced their stakes in AREX. Goldman Sachs Group Inc. increased its position in shares of 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 acquiring an additional 577,368 shares during the last quarter. State Street Corp increased its position in Approach Resources by 2,151.6% during the second quarter. State Street Corp now owns 491,375 shares of the energy company’s stock worth $1,657,000 after buying an additional 469,552 shares during the last quarter. Northern Trust Corp increased its position in Approach Resources by 264.2% during the second quarter. Northern Trust Corp now owns 557,713 shares of the energy company’s stock worth $1,879,000 after buying an additional 404,580 shares during the last quarter. Vanguard Group Inc. increased its position in Approach Resources by 21.6% during the second quarter. Vanguard Group Inc. now owns 1,959,374 shares of the energy company’s stock worth $6,603,000 after buying an additional 347,986 shares during the last quarter. Finally, Balyasny Asset Management LLC acquired a new position in Approach Resources during the second quarter worth approximately $910,000. 24.33% of the stock is currently owned by institutional investors and hedge funds.

About Approach Resources

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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