Approach Resources (NASDAQ:AREX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The firm presently has a $4.50 price target on the energy company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 15.09% from the stock’s current price.

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 equities analysts have also recently issued reports on AREX. Robert W. Baird restated a “hold” rating and set a $4.00 target price on shares of Approach Resources in a research note on Tuesday, September 26th. KeyCorp restated a “hold” rating on shares of Approach Resources in a research note on Thursday, October 12th. Scotiabank restated a “hold” rating and set a $3.00 target price on shares of Approach Resources in a research note on Wednesday, November 22nd. ValuEngine cut shares of Approach Resources from a “sell” rating to a “strong sell” rating in a research note on Sunday, December 31st. Finally, BidaskClub upgraded shares of Approach Resources from a “hold” rating to a “buy” rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and three have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $3.08.

Approach Resources (AREX) opened at $3.91 on Friday. 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 one year low of $1.93 and a one year high of $4.21.

Approach Resources (NASDAQ:AREX) last posted its earnings results on Wednesday, November 1st. The energy company reported ($0.08) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.09) by $0.01. The business had revenue of $25.61 million for 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%. equities research analysts expect that Approach Resources will post -0.36 earnings per share for the current year.

In other Approach Resources news, major shareholder Wilks Brothers, Llc purchased 200,000 shares of Approach Resources stock in a transaction dated Monday, December 4th. The stock was purchased at an average price of $2.39 per share, with a total value of $478,000.00. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders have bought a total of 4,089,398 shares of company stock valued at $11,804,970 in the last ninety days. Insiders own 5.10% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Schwab Charles Investment Management Inc. purchased a new stake in shares of Approach Resources during the 2nd quarter valued at about $252,000. Balyasny Asset Management LLC purchased a new stake in shares of Approach Resources during the 2nd quarter valued at about $910,000. Teachers Advisors LLC purchased a new stake in shares of Approach Resources during the 2nd quarter valued at about $562,000. Bank of New York Mellon Corp increased its position in shares of Approach Resources by 412.6% during the 2nd quarter. Bank of New York Mellon Corp now owns 195,714 shares of the energy company’s stock valued at $660,000 after purchasing an additional 157,534 shares during the last quarter. Finally, TIAA CREF Investment Management LLC purchased a new stake in shares of Approach Resources during the 2nd quarter valued at about $699,000. 24.63% of the stock is owned by hedge funds and other institutional investors.

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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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