Zacks Investment Research upgraded shares of Approach Resources Inc. (NASDAQ:AREX) from a hold rating to a buy rating in a report released on Tuesday morning. They currently have $2.75 target price 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 analysts have also recently issued reports on AREX. BidaskClub cut shares of Approach Resources from a hold rating to a sell rating in a report on Thursday, July 27th. ValuEngine cut shares of Approach Resources from a hold rating to a sell rating in a report on Monday, August 14th. Imperial Capital started coverage on shares of Approach Resources in a report on Friday, August 18th. They set an in-line rating and a $2.50 price objective for the company. Robert W. Baird restated a hold rating and set a $4.00 price objective on shares of Approach Resources in a report on Tuesday, September 26th. Finally, KeyCorp reiterated a hold rating on shares of Approach Resources in a report on Thursday, October 12th. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have assigned a buy rating to the company. The company presently has a consensus rating of Hold and an average price target of $2.79.

Approach Resources (AREX) opened at $2.37 on Tuesday. The company has a quick ratio of 0.41, a current ratio of 0.41 and a debt-to-equity ratio of 0.69. Approach Resources has a 1-year low of $1.93 and a 1-year high of $4.33.

Approach Resources (NASDAQ:AREX) last issued its quarterly earnings data on Wednesday, November 1st. The energy company reported ($0.08) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.09) by $0.01. The firm had revenue of $25.61 million during the quarter, compared to analysts’ expectations of $25.74 million. Approach Resources had a negative net margin of 165.95% and a negative return on equity of 6.39%. analysts forecast that Approach Resources will post -0.39 earnings per share for the current fiscal year.

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Institutional investors have recently added to or reduced their stakes in the company. Virtu KCG Holdings LLC boosted its holdings in shares of Approach Resources by 182.8% in the second 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 during the period. Kornitzer Capital Management Inc. KS bought a new stake in shares of Approach Resources in the second quarter worth $124,000. New York State Common Retirement Fund bought a new stake in shares of Approach Resources in the second quarter worth $154,000. Rhumbline Advisers bought a new stake in shares of Approach Resources in the second quarter worth $157,000. Finally, Edge Wealth Management LLC lifted 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 purchasing an additional 10,000 shares in the last quarter. Institutional investors own 24.33% 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.

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