Approach Resources Inc. (NASDAQ:AREX)
Shares of Approach Resources Inc. (NASDAQ:AREX) are experiencing their 5th day of losses in a row. Earlier this month AREX shares were trading under $2.00, then on May 3, six days of higher highs followed and shares ended up hitting resistance around $3.00. Through the middle of the month sellers pushed AREX shares down every time they tried to breakout over the $3.00 level then on May 23, the slide hit and every day since then has seen lower lows. Approach Resources Inc. (NASDAQ:AREX) shares are currently trading around $2.55 as of 3:26 PM EST. AREX shares have not been above $5.00 since 2015 but they are well over their $1.35 52-weekly low. The 52-week high is $4.35 but the analysts have assigned their price target at just $3.78.
Approach Resources Inc. (NASDAQ:AREX) is based in west Texas, but headquartered in Ft. Worth, and is an independent oil and gas producer. The company’s reserves are primarily located in the famed Permian basin but it also has interests in east Texas. In total the company claims reserves of 156.4 million barrels of oil with over 800 wells drilled to access those assets.
For Q1, Approach Resources Inc. (NASDAQ:AREX) reported a loss of $140.8 million or (-$2.00) per share. Losses, adjusted for non-recurring costs, were (-$0.11) per share. The results matched expectations. Approach Resources Inc. (NASDAQ:AREX) posted Q1 revenue of $26.4 million, which topped analyst expectations. Four analysts surveyed by Zacks expected $25.7 million.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.