Seaport Global Downgrades Approach Resources Inc to Sell

By Carrie Williams

In a report released today, Mike Kelly from Seaport Global downgraded Approach Resources Inc (NASDAQ: AREX) to Sell. The company’s shares closed yesterday at $2.61.

According to, Kelly is a 3-star analyst with an average return of 2.3% and a 47.5% success rate. Kelly covers the Basic Materials sector, focusing on stocks such as Sanchez Energy Corporation, Clayton Williams Energy, and Abraxas Petroleum Corp.

Approach Resources Inc has an analyst consensus of Moderate Sell, with a price target consensus of $3.25.

Based on Approach Resources Inc’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $26.36 million and GAAP net loss of $141 million. In comparison, last year the company earned revenue of $17.62 million and had a GAAP net loss of $13.66 million.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AREX in relation to earlier this year. Last month, Vean Gregg, a Director at AREX bought 10,000 shares for a total of $29,900.

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Approach Resources, Inc. engages in the exploration, development, production and acquisition of oil and gas properties. The company focuses on oil and natural gas reserves in oil shale and tight sands located in the Permian Basin in West Texas. It holds interests in the East Texas Basin and the Chama Basin in Northern New Mexico. Approach Resources was founded by J. Ross Craft in September 2002 and is headquartered in Fort Worth, TX.