ARC Resources (TSE:ARX) Reaches New 12-Month High – Should You Buy?

ARC Resources Ltd. (TSE:ARX) shares reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as C$32.40 and last traded at C$32.33, with a volume of 2161443 shares traded. The stock had previously closed at C$32.00.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on ARX shares. Scotiabank raised ARC Resources to a “hold” rating in a research report on Wednesday, April 1st. Raymond James Financial lifted their price target on ARC Resources from C$29.00 to C$32.80 in a research report on Tuesday, April 28th. Canadian Imperial Bank of Commerce lowered 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 report on Tuesday, April 28th. ATB Cormark Capital Markets lowered ARC Resources from an “outperform” rating to a “tender” rating and set a C$31.00 price target for the company. in a research report on Tuesday, April 28th. Finally, Desjardins lowered their price target on ARC Resources from C$31.00 to C$27.00 and set a “buy” rating for the company in a research report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of C$29.98.

ARC Resources Price Performance

The firm has a fifty day moving average of C$29.10 and a 200 day moving average of C$26.62. The company has a market capitalization of C$18.24 billion, a P/E ratio of 12.75, a P/E/G ratio of 0.29 and a beta of -0.27. The company has a current ratio of 0.87, a quick ratio of 0.42 and a debt-to-equity ratio of 43.61.

ARC Resources (TSE:ARX) last posted its earnings results on Tuesday, April 28th. The oil and gas exploration company reported C$1.03 EPS for the quarter. ARC Resources had a net margin of 22.18% and a return on equity of 17.43%. The business had revenue of C$2.10 billion during the quarter. On average, equities research analysts anticipate that ARC Resources Ltd. will post 2.7255139 EPS for the current year.

ARC Resources Announces Dividend

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

ARC Resources Company Profile

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.