ARC Resources (TSE:ARX) Lowered to Strong Sell Rating by TD Securities

TD Securities cut shares of ARC Resources (TSE:ARX) from a strong-buy rating to a strong sell rating in a research report report published on Monday morning,Zacks.com reports.

A number of other brokerages have also recently commented on ARX. Canadian Imperial Bank of Commerce cut shares of ARC Resources from a “neutral” rating to a “tender” rating and upped their price target for the company from C$29.00 to C$32.00 in a research note on Tuesday. Scotiabank upgraded shares of ARC Resources to a “hold” rating in a research note on Wednesday, April 1st. National Bank Financial cut shares of ARC Resources from an “outperform” rating to a “hold” rating and dropped their price target for the company from C$27.00 to C$26.00 in a research note on Friday, February 6th. Capital One Financial cut shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Finally, BMO Capital Markets cut shares of ARC Resources from an “outperform” rating to a “market perform” rating and increased their target price for the stock from C$30.00 to C$32.00 in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of C$29.98.

ARC Resources Stock Performance

Shares of ARX stock opened at C$31.37 on Monday. The stock has a market capitalization of C$18.25 billion, a P/E ratio of 14.32, a PEG ratio of 0.29 and a beta of -0.30. The company has a current ratio of 0.70, a quick ratio of 0.42 and a debt-to-equity ratio of 58.50. The firm’s 50 day moving average is C$26.87 and its 200 day moving average is C$25.70. ARC Resources has a 12 month low of C$21.14 and a 12 month high of C$31.99.

ARC Resources (TSE:ARX) last announced its quarterly earnings results on Tuesday, April 28th. The oil and gas exploration company reported C$1.03 EPS for the quarter. The company had revenue of C$2.10 billion for the quarter. ARC Resources had a net margin of 20.99% and a return on equity of 15.52%. On average, sell-side analysts anticipate that ARC Resources will post 2.7255139 earnings per share for the current year.

ARC Resources Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 15th were paid a $0.21 dividend. The ex-dividend date was Tuesday, March 31st. This represents a $0.84 annualized dividend and a yield of 2.7%. ARC Resources’s dividend payout ratio is currently 35.62%.

ARC Resources News Summary

Here are the key news stories impacting ARC Resources this week:

• Positive Sentiment: Shell agreed to acquire ARC in a roughly C$22B (US$16.4B) deal — the takeover is the primary catalyst, delivering a meaningful takeover premium and strategic rationale tied to LNG/export expansion. Shell buying Calgary-based ARC Resources in $16.4-billion deal as it mulls LNG Canada expansion
• Positive Sentiment: Market reaction: shares jumped sharply on the Shell bid (reports note ~20% intraday gains), reflecting investor appetite for the premium and potential consolidation benefits. Shell’s $16.4B Acquisition of ARC Resources (ARX) Sends Stock Soaring 20%
• Positive Sentiment: Q1 operating/financials were solid: net income C$584.3M (vs. C$404.7M a year ago), EPS C$1.03 and revenue C$2.10B — supports ARC’s cash flow profile and strengthens the deal/valuation story. ARC Resources reports $584.3M in Q1 net income, up from $404.7M last year
• Positive Sentiment: Raymond James raised its price target to C$32.80, signaling some analyst support for a higher valuation post-news. BayStreet.CA
• Neutral Sentiment: Analyst reactions are mixed: several firms downgraded coverage (to market‑perform/hold/tender) even as a number nudged price targets slightly higher — introduces near-term caution despite takeover premium. Analyst ratings roundup
• Neutral Sentiment: Valuation write-ups are reassessing ARX after the share-price move — useful for investors checking whether the deal price and recent momentum leave upside for remaining public holders. A Look At ARC Resources (TSX:ARX) Valuation After Recent Share Price Momentum
• Negative Sentiment: ATB Cormark cut its rating to “tender” and set a C$31.00 target (below the prior price), highlighting risk that some analysts see limited upside if takeover terms or regulatory clearance change. Analyst ratings roundup

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.