Zacks Investment Research Lowers Approach Resources (AREX) to Hold

Zacks Investment Research downgraded shares of Approach Resources (NASDAQ:AREX) from a buy rating to a hold rating in a report released on Friday.

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. “

Separately, KLR Group reissued a hold rating and set a $3.00 price objective on shares of Approach Resources in a research report on Monday, August 20th. Six research analysts have rated the stock with a hold rating, The company has an average rating of Hold and a consensus price target of $2.75.

NASDAQ AREX opened at $2.17 on Friday. Approach Resources has a twelve month low of $1.96 and a twelve month high of $4.21. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 0.64. The stock has a market cap of $210.71 million, a P/E ratio of -6.03 and a beta of 2.65.

Approach Resources (NASDAQ:AREX) last posted its quarterly earnings data on Wednesday, August 1st. The energy company reported ($0.07) earnings per share for the quarter, hitting the consensus estimate of ($0.07). Approach Resources had a negative return on equity of 4.52% and a net margin of 18.38%. The business had revenue of $30.33 million during the quarter, compared to analysts’ expectations of $28.16 million. As a group, analysts expect that Approach Resources will post -0.31 EPS for the current year.

Several hedge funds and other institutional investors have recently bought and sold shares of AREX. Kayne Anderson Capital Advisors LP raised its holdings in Approach Resources by 12.6% in the 1st quarter. Kayne Anderson Capital Advisors LP now owns 7,573,403 shares of the energy company’s stock valued at $19,767,000 after acquiring an additional 848,180 shares in the last quarter. BlackRock Inc. raised its holdings in Approach Resources by 11.5% in the 2nd quarter. BlackRock Inc. now owns 3,504,971 shares of the energy company’s stock valued at $8,551,000 after acquiring an additional 361,169 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in Approach Resources by 49.7% in the 2nd quarter. Bank of New York Mellon Corp now owns 265,861 shares of the energy company’s stock valued at $649,000 after acquiring an additional 88,295 shares in the last quarter. GSA Capital Partners LLP raised its holdings in Approach Resources by 83.1% in the 2nd quarter. GSA Capital Partners LLP now owns 200,306 shares of the energy company’s stock valued at $489,000 after acquiring an additional 90,900 shares in the last quarter. Finally, KBC Group NV acquired a new position in Approach Resources in the 1st quarter valued at approximately $268,000. 75.07% of the stock is owned by institutional investors and hedge funds.

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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