Zacks Investment Research upgraded shares of Approach Resources (NASDAQ:AREX) from a hold rating to a buy rating in a report released on Tuesday, reports. They currently have $0.25 price target on the energy company’s stock.

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. “

A number of other research firms have also issued reports on AREX. ValuEngine upgraded Approach Resources from a sell rating to a hold rating in a research report on Monday, February 4th. EuroPacific Canada lowered Approach Resources from a neutral rating to a sell rating in a research report on Tuesday, March 19th. Finally, Imperial Capital lowered Approach Resources from an in-line rating to an underperform rating and dropped their price target for the company from $3.50 to $0.40 in a research report on Wednesday, March 20th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and one has issued a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus target price of $1.22.

AREX stock opened at $0.25 on Tuesday. The company has a quick ratio of 0.08, a current ratio of 0.08 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $23.57 million, a PE ratio of -0.96 and a beta of 2.74. Approach Resources has a 1 year low of $0.23 and a 1 year high of $3.18.

Approach Resources (NASDAQ:AREX) last posted its quarterly earnings results on Thursday, May 9th. The energy company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.02. The business had revenue of $19.24 million during the quarter, compared to analyst estimates of $21.11 million. Approach Resources had a negative return on equity of 4.46% and a negative net margin of 28.00%. Equities research analysts predict that Approach Resources will post -0.32 EPS for the current fiscal year.

Hedge funds have recently bought and sold shares of the company. SG Americas Securities LLC grew its position in shares of Approach Resources by 260.0% in the first quarter. SG Americas Securities LLC now owns 88,016 shares of the energy company’s stock valued at $31,000 after purchasing an additional 63,566 shares in the last quarter. Rhumbline Advisers grew its position in Approach Resources by 34.6% in the fourth quarter. Rhumbline Advisers now owns 60,842 shares of the energy company’s stock worth $53,000 after acquiring an additional 15,640 shares during the period. Municipal Employees Retirement System of Michigan purchased a new position in Approach Resources in the fourth quarter worth approximately $160,000. Finally, Geode Capital Management LLC grew its position in Approach Resources by 6.6% in the fourth quarter. Geode Capital Management LLC now owns 531,253 shares of the energy company’s stock worth $463,000 after acquiring an additional 32,712 shares during the period. Institutional investors and hedge funds own 69.45% of the company’s stock.

Approach Resources Company Profile

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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