Approach Resources (NASDAQ:AREX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued 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. “

Separately, KLR Group reiterated a “hold” rating and issued a $3.00 price objective on shares of Approach Resources in a research report on Monday, August 20th. One equities research analyst has rated the stock with a sell rating and five have assigned a hold rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $2.75.

AREX traded up $0.03 during mid-day trading on Tuesday, reaching $1.89. The stock had a trading volume of 291,074 shares, compared to its average volume of 465,370. The firm has a market capitalization of $180.47 million, a price-to-earnings ratio of -5.25 and a beta of 2.65. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.46 and a current ratio of 0.46. Approach Resources has a 52 week low of $1.73 and a 52 week high of $4.21.

Approach Resources (NASDAQ:AREX) last announced its quarterly earnings data on Wednesday, August 1st. The energy company reported ($0.07) EPS for the quarter, meeting the Zacks’ consensus estimate of ($0.07). The firm had revenue of $30.33 million for the quarter, compared to analyst estimates of $28.16 million. Approach Resources had a negative return on equity of 4.52% and a net margin of 18.38%. As a group, research analysts forecast that Approach Resources will post -0.31 EPS for the current year.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. GSA Capital Partners LLP lifted its stake in shares of Approach Resources by 497.7% in the 1st quarter. GSA Capital Partners LLP now owns 109,406 shares of the energy company’s stock valued at $286,000 after purchasing an additional 91,100 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of 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 purchasing an additional 88,295 shares during the period. Finally, BlackRock Inc. lifted its stake in shares of 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 purchasing an additional 361,169 shares during the period. Hedge funds and other institutional investors own 75.39% of the company’s stock.

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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