Shares of Approach Resources Inc. (NASDAQ:AREX) dropped 9.7% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $2.56 and last traded at $2.66, with a volume of 980,870 shares changing hands. The stock had previously closed at $2.94.
The energy company reported ($0.11) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.09) by $0.02. Approach Resources had a negative return on equity of 6.84% and a negative net margin of 169.54%. The business had revenue of $24.97 million during the quarter, compared to the consensus estimate of $25.86 million. During the same quarter in the previous year, the firm posted ($0.25) earnings per share. The company’s revenue was up 11.3% compared to the same quarter last year.
AREX has been the topic of a number of research analyst reports. Zacks Investment Research raised shares of Approach Resources from a “sell” rating to a “hold” rating in a research report on Tuesday, June 20th. Scotiabank reaffirmed a “hold” rating and issued a $3.25 target price on shares of Approach Resources in a research report on Tuesday, May 16th. BidaskClub downgraded shares of Approach Resources from a “hold” rating to a “sell” rating in a research report on Thursday, July 27th. ValuEngine raised shares of Approach Resources from a “sell” rating to a “hold” rating in a research report on Saturday, July 1st. Finally, Seaport Global Securities downgraded shares of Approach Resources from a “neutral” rating to a “sell” rating and reduced their target price for the stock from $3.00 to $0.50 in a research report on Wednesday, June 21st. Three investment analysts have rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $3.20.
In other news, Director Vean J. Gregg III purchased 10,000 shares of the company’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 purchase, the director now directly owns 131,749 shares in the company, valued at approximately $395,247. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Wilks Brothers, Llc purchased 200,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 10th. The stock was purchased at an average price of $2.81 per share, for a total transaction of $562,000.00. The disclosure for this purchase can be found here. In the last quarter, insiders purchased 2,861,000 shares of company stock worth $7,860,650. 7.80% of the stock is currently owned by company insiders.
Institutional investors have recently made changes to their positions in the company. Janney Montgomery Scott LLC boosted its position in shares of Approach Resources by 2.6% in the second quarter. Janney Montgomery Scott LLC now owns 105,432 shares of the energy company’s stock worth $355,000 after buying an additional 2,703 shares during the last quarter. Edge Wealth Management LLC boosted its position in shares of Approach Resources by 25.0% in the second quarter. Edge Wealth Management LLC now owns 50,000 shares of the energy company’s stock worth $161,000 after buying an additional 10,000 shares during the last quarter. Eagle Global Advisors LLC boosted its position in shares of Approach Resources by 18.9% in the first quarter. Eagle Global Advisors LLC now owns 77,638 shares of the energy company’s stock worth $195,000 after buying an additional 12,350 shares during the last quarter. Kornitzer Capital Management Inc. KS purchased a new position in shares of Approach Resources during the second quarter worth about $124,000. Finally, Segantii Capital Management Ltd boosted its position in shares of Approach Resources by 536.8% in the first quarter. Segantii Capital Management Ltd now owns 48,400 shares of the energy company’s stock worth $121,000 after buying an additional 40,800 shares during the last quarter. Institutional investors own 25.28% of the company’s stock.
The stock’s market cap is $246.07 million. The stock has a 50-day moving average price of $2.95 and a 200 day moving average price of $2.76.
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About Approach Resources
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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