Zacks Investment Research Lowers Approach Resources Inc. (NASDAQ:AREX) to Sell

Zacks Investment Research lowered shares of Approach Resources Inc. (NASDAQ:AREX) from a hold rating to a sell rating in a research report released on Tuesday.

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. “

AREX has been the topic of a number of other reports. ValuEngine lowered shares of Approach Resources from a hold rating to a sell rating in a report on Thursday, June 1st. Scotiabank set a $3.00 price objective on shares of Approach Resources and gave the company a hold rating in a report on Saturday, July 1st. Finally, Seaport Global Securities lowered shares of Approach Resources from a neutral rating to a sell rating and reduced their price objective for the company from $3.00 to $0.50 in a report on Wednesday, June 21st. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the company’s stock. Approach Resources presently has a consensus rating of Hold and an average price target of $3.20.

Shares of Approach Resources (NASDAQ AREX) traded down 1.97% during trading on Tuesday, reaching $2.98. 291,872 shares of the company were exchanged. The stock’s market capitalization is $209.82 million. The firm has a 50-day moving average price of $2.87 and a 200-day moving average price of $2.78. Approach Resources has a 1-year low of $1.35 and a 1-year high of $4.35.

Approach Resources (NASDAQ:AREX) last announced its quarterly earnings data on Thursday, May 4th. The energy company reported ($0.11) earnings per share for the quarter, meeting the Zacks’ consensus estimate of ($0.11). Approach Resources had a negative net margin of 181.09% and a negative return on equity of 6.87%. The business had revenue of $26.40 million for the quarter, compared to analyst estimates of $25.96 million. During the same period last year, the business earned ($0.32) EPS. The company’s revenue was up 50.0% on a year-over-year basis. Equities research analysts predict that Approach Resources will post ($0.25) earnings per share for the current fiscal year.

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In related news, insider Wilks Brothers, Llc purchased 100,000 shares of the business’s stock in a transaction that occurred on Thursday, June 22nd. The shares were purchased at an average cost of $2.42 per share, for a total transaction of $242,000.00. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, Director Vean J. Gregg III purchased 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 10th. The shares were bought at an average price of $3.00 per share, for a total transaction of $30,000.00. Following the completion of the purchase, the director now directly owns 131,749 shares in the company, valued at $395,247. The disclosure for this purchase can be found here. Insiders have purchased a total of 2,861,000 shares of company stock worth $7,860,650 over the last quarter. 7.80% of the stock is owned by company insiders.

A number of large investors have recently made changes to their positions in AREX. Cpcm LLC acquired a new position in shares of Approach Resources during the first quarter valued at about $246,000. 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 buying an additional 577,368 shares during the last quarter. Marathon Asset Management LP increased its position in shares of Approach Resources by 9.3% in the first quarter. Marathon Asset Management LP now owns 1,170,382 shares of the energy company’s stock valued at $2,937,000 after buying an additional 100,000 shares during the last quarter. Jane Street Group LLC acquired a new position in shares of Approach Resources during the first quarter valued at about $198,000. Finally, Columbia Pacific Advisors LLC acquired a new position in shares of Approach Resources during the first quarter valued at about $321,000. Hedge funds and other institutional investors own 25.64% of the company’s stock.

Approach Resources Company Profile

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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