ARC Resources (TSE:ARX) Reaches New 1-Year High – Here’s Why

Shares of ARC Resources Ltd. (TSE:ARX) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as C$32.54 and last traded at C$32.44, with a volume of 469288 shares. The stock had previously closed at C$31.92.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ARX. Canaccord Genuity Group downgraded shares of ARC Resources from a “buy” rating to a “hold” rating and raised their target price for the company from C$31.00 to C$32.00 in a research note on Tuesday, April 28th. TD Securities downgraded shares of ARC Resources from a “strong-buy” rating to a “strong sell” rating in a research report on Monday, April 27th. Capital One Financial downgraded shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 28th. Jefferies Financial Group cut shares of ARC Resources from a “strong-buy” rating to a “hold” rating in a report on Wednesday, April 29th. Finally, Canadian Imperial Bank of Commerce cut shares of ARC Resources from a “neutral” rating to a “tender” rating and lifted their price target for the stock from C$29.00 to C$32.00 in a research note on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of C$29.98.

ARC Resources Stock Up 1.4%

The stock has a market capitalization of C$18.31 billion, a P/E ratio of 12.80, a P/E/G ratio of 0.29 and a beta of -0.34. The company’s 50-day moving average price is C$29.47 and its 200 day moving average price is C$26.97. The company has a debt-to-equity ratio of 43.61, a quick ratio of 0.42 and a current ratio of 0.87.

ARC Resources (TSE:ARX) last announced its quarterly earnings results on Tuesday, April 28th. The oil and gas exploration company reported C$1.03 earnings per share (EPS) for the quarter. The company had revenue of C$2.10 billion for the quarter. ARC Resources had a net margin of 22.18% and a return on equity of 17.43%. As a group, equities analysts expect that ARC Resources Ltd. will post 2.7255139 earnings per share for the current year.

ARC Resources Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 15th were issued a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Tuesday, March 31st. ARC Resources’s payout ratio is currently 31.62%.

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.