Approach Resources, Inc. (NASDAQ:AREX) is one of the stocks that are grabbing investor focus today: sinking -1.12% or (0 points) to $0.33 from its previous close of $0.33. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 338186 contracts so far this session. AREX shares had a relatively better volume day versus average trading capacity of 944.04 thousand shares, but with a 89.69 million float and a 24.53% run over a week, it’s definitely worth keeping an eye on. AREX share price has been trading recently between $0.3 and $0.34.
The shorts are running away from Approach Resources, Inc. (AREX) stock. The latest set of short interest data was released on 28 June 2019, and the numbers show a drop in short interest in AREX shares. While short interest still represents only 7.24% of AREX’s float, the number of shares shorted have fallen by -372420. The number of shares shorted fell to 6116546 shares, down from 6488966 shares during the preceding fortnight. With average daily trading volumes at 1860312 shares, days to cover decreased to about 5.211322 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Enterprise Products Cheers Investors With Distribution Hike” and dated July 10, 2019.
During the recent trading session for Approach Resources, Inc. (NASDAQ:AREX), the company witnessed their stock drop by $-0.01 over a week and surge $0.09 from the price 20 days ago. When compared to their established 52-week high of $2.58, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/13/18. The recent low of $0.2 stood for a -87.35% since 05/31/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 3.12 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Approach Resources, Inc., the two-week RSI stands at 55.92. This figure suggests that AREX stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current AREX readings is similarly very revealing as it has a stochastic reading of 24.1% at this stage. This figure means that AREX share price today is being overbought.
Technical chart claims that Approach Resources, Inc. (AREX) would settle between $0.35/share to $0.36/share level. However, if the stock price goes below the $0.31 mark, then the market for Approach Resources, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $0.28 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.01. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Seaport Global Securities lowered their recommendation on shares of AREX from Neutral to Sell in their opinion released on June 21. Seaport Global Securities, analysts launched coverage of Approach Resources, Inc. (NASDAQ:AREX) stock with a Neutral recommendation, according to their flash note issued to investors on February 16. Analysts at Wunderlich released an upgrade from Hold to Buy for the stock, in a research note that dated back to October 26.
AREX equity has an average rating of 3, with the figure leaning towards a bullish end. 1 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 0 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 0 analysts rated Approach Resources, Inc. (NASDAQ:AREX) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, AREX stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.23 while for the average stock in the same group, the multiple is 86.28.
Approach Resources, Inc. (AREX)’s current-quarter revenues are projected to climb by nearly -32.05% to hit $20.61 million, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -28.39% from $114040 to a noteworthy $81.66 million. At the other end of the current quarter income statement, Approach Resources, Inc. is expected to see its adjusted earnings surge by roughly -28.57% to hit $-0.09 per share. For the fiscal year, AREX’s earnings are projected to climb by roughly -23.08% to hit $-0.32 per share.