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

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. “

Several other research firms have also recently issued reports on AREX. Robert W. Baird reiterated a “hold” rating and set a $4.00 target price on shares of Approach Resources in a research report on Tuesday, September 26th. Imperial Capital started coverage on Approach Resources in a research report on Friday, August 18th. They set an “in-line” rating and a $2.50 target price for the company. BidaskClub cut Approach Resources from a “hold” rating to a “sell” rating in a research report on Thursday, July 27th. ValuEngine upgraded Approach Resources from a “sell” rating to a “hold” rating in a research report on Saturday, July 1st. Finally, Seaport Global Securities cut Approach Resources from a “neutral” rating to a “sell” rating and cut their target price for the stock from $3.00 to $0.50 in a research report on Wednesday, June 21st. Four equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $3.25.

Shares of Approach Resources (NASDAQ AREX) traded down 1.59% during midday trading on Monday, reaching $2.48. The company had a trading volume of 158,466 shares. Approach Resources has a 1-year low of $1.93 and a 1-year high of $4.33. The company’s 50-day moving average is $2.60 and its 200-day moving average is $2.65. The stock’s market capitalization is $214.12 million.

Approach Resources (NASDAQ:AREX) last released its earnings results on Wednesday, August 2nd. The energy company reported ($0.11) earnings per share (EPS) for the quarter, missing the 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 for the quarter, compared to analysts’ expectations of $25.86 million. During the same quarter in the prior year, the business posted ($0.25) EPS. The business’s revenue for the quarter was up 11.3% compared to the same quarter last year. On average, equities research analysts forecast that Approach Resources will post ($0.29) EPS for the current year.

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Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Virtu KCG Holdings LLC grew its holdings in Approach Resources by 182.8% during the 2nd quarter. Virtu KCG Holdings LLC now owns 32,033 shares of the energy company’s stock valued at $108,000 after buying an additional 20,705 shares in the last quarter. Kornitzer Capital Management Inc. KS purchased a new position in Approach Resources during the 2nd quarter valued at approximately $124,000. New York State Common Retirement Fund purchased a new position in Approach Resources during the 2nd quarter valued at approximately $154,000. Rhumbline Advisers purchased a new position in Approach Resources during the 2nd quarter valued at approximately $157,000. Finally, Edge Wealth Management LLC grew its holdings in Approach Resources by 25.0% during the 2nd quarter. Edge Wealth Management LLC now owns 50,000 shares of the energy company’s stock valued at $161,000 after buying an additional 10,000 shares in the last quarter. Institutional investors and hedge funds own 24.34% of the company’s stock.

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.

Analyst Recommendations for Approach Resources (NASDAQ:AREX)

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