Approach Resources (NASDAQ:AREX) Lifted to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Approach Resources (NASDAQ:AREX) from a hold rating to a buy rating in a research report report published on Thursday morning, Zacks.com reports. The brokerage currently has $0.25 price objective 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. “

Other equities research analysts also recently issued research reports about the stock. ValuEngine downgraded shares of Zumiez from a hold rating to a sell rating in a research note on Tuesday, July 2nd. Imperial Capital downgraded shares of Approach Resources from an in-line rating to an underperform rating and reduced their price target for the stock from $3.50 to $0.40 in a research note on Wednesday, March 20th. Three equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and one has issued a buy rating to the stock. The stock presently has an average rating of Hold and a consensus target price of $1.22.

Shares of AREX opened at $0.28 on Thursday. Approach Resources has a twelve month low of $0.20 and a twelve month high of $2.48. The company has a current ratio of 0.08, a quick ratio of 0.08 and a debt-to-equity ratio of 0.16. The company has a fifty day moving average price of $0.28.

Approach Resources (NASDAQ:AREX) last announced its earnings results on Thursday, May 9th. The energy company reported ($0.09) earnings per share for the quarter, beating 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 business had revenue of $19.24 million for the quarter, compared to the consensus estimate of $21.11 million. On average, equities research analysts predict that Approach Resources will post -0.32 earnings per share for the current year.

A number of hedge funds have recently bought and sold shares of AREX. Municipal Employees Retirement System of Michigan purchased a new position in Approach Resources in the 4th quarter worth about $160,000. SG Americas Securities LLC grew its holdings in Approach Resources by 260.0% during the 1st quarter. SG Americas Securities LLC now owns 88,016 shares of the energy company’s stock worth $31,000 after acquiring an additional 63,566 shares in the last quarter. Geode Capital Management LLC grew its holdings in Approach Resources by 6.6% during the 4th 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 in the last quarter. Finally, Rhumbline Advisers grew its holdings in 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 acquiring an additional 15,640 shares in the last quarter. 68.71% of the stock is currently owned by institutional investors.

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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