Approach Resources (NASDAQ:AREX) Downgraded by Zacks Investment Research

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Approach Resources (NASDAQ:AREX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday, reports.

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, ValuEngine cut shares of Zumiez from a “hold” rating to a “sell” rating in a research report on Tuesday, July 2nd. Three analysts have rated the stock with a sell rating and two have assigned a hold rating to the company. The stock has an average rating of “Sell” and a consensus target price of $1.22.

NASDAQ AREX traded up $0.01 during trading hours on Tuesday, hitting $0.28. The company’s stock had a trading volume of 315,131 shares, compared to its average volume of 649,628. Approach Resources has a 52 week low of $0.20 and a 52 week high of $2.47. The stock has a market capitalization of $26.00 million, a P/E ratio of -1.08 and a beta of 3.07. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.08 and a quick ratio of 0.08. The company’s 50-day moving average price is $0.28.

Approach Resources (NASDAQ:AREX) last posted its earnings results on Thursday, May 9th. The energy company reported ($0.09) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.11) by $0.02. Approach Resources had a negative net margin of 28.00% and a negative return on equity of 4.46%. The firm had revenue of $19.24 million for the quarter, compared to analysts’ expectations of $21.11 million. On average, research analysts anticipate that Approach Resources will post -0.32 EPS for the current fiscal year.

Institutional investors have recently bought and sold shares of the business. Rhumbline Advisers lifted its position in shares of Approach Resources by 34.6% during the 4th quarter. Rhumbline Advisers now owns 60,842 shares of the energy company’s stock worth $53,000 after buying an additional 15,640 shares in the last quarter. SG Americas Securities LLC raised its holdings in shares of Approach Resources by 260.0% in the 1st quarter. SG Americas Securities LLC now owns 88,016 shares of the energy company’s stock worth $31,000 after purchasing an additional 63,566 shares during the period. Municipal Employees Retirement System of Michigan bought a new stake in shares of Approach Resources in the 4th quarter worth approximately $160,000. Finally, Geode Capital Management LLC raised its holdings in shares of Approach Resources by 6.6% in the 4th quarter. Geode Capital Management LLC now owns 531,253 shares of the energy company’s stock worth $463,000 after purchasing an additional 32,712 shares during the period. 68.71% of the stock is currently owned by hedge funds and other institutional investors.

About Approach Resources

Approach Resources, Inc, an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves. The company's properties are primarily located in the Permian Basin in west Texas. It also owns interests in east Texas Basin. As of December 31, 2018, its estimated proved reserves were 180.1 million barrels of oil equivalent located in Crockett and Schleicher counties, Texas.

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