Is Approach Resources Inc. (NASDAQ:AREX) a raw deal?


Approach Resources Inc. (NASDAQ:AREX) reported results for first quarter 2017. Highlights for first quarter 2017 include:

— Production was 11.4 MBoe/d, exceeding first quarter guidance

— Revenues increased 50% from prior year quarter, to $26.4 million

— Drilled three horizontal wells and completed two horizontal wells

— Borrowing base reaffirmed at $325 million following spring redetermination

— Reduced the principal amount of our senior notes outstanding by approximately $145 million, which will reduce future interest payments by over $44 million

Approach Resources Inc. (NASDAQ:AREX)’s current stock price of $2.99 implies a change of 2.75% from the previous session.

While the stock is currently trading in the vicinity of of $2.99, analysts on the average see the stock trading in the vicinity of $3.75 in the next 12 months.

Looking back, you can that the stock’s peak over the last 12 months is $-31.26% and its lowest over the same period is $121.48%.

Let?s look into the charts of the stock

The Barchart Technical Opinion rating is a 48% Buy with a Average short term outlook on maintaining the current direction. Longer term, the trend strength is Average. Long term indicators mostly agree with the trend. The market is approaching overbought territory. Be watchful of a trend reversal.

The average closing price of the stock for the last 20 days, or known as 20-day simple moving average, is $28.88%. For the last 50 days and 200 days, the stock’s closing has averaged $26.01% and $3.00%, respectively.

How volatile is Approach Resources Inc.’s stock compared to the market? The stock’s beta is 2.69. Beta is a measure of stock volatility. So a beta less than one indicates that a stock is less volatile than the market and a beta greater than one implies a stock is more volatile than the market.

In more precise volatility measurement, we can see that Approach Resources Inc.?s weekly volatility is 9.07%, while its monthly volatility is 8.09%.

Furthermore, the stock’s ATR (average true range) is 0.19. ATR measures the degree of a stock?s price volatility.

In terms of stock performance, here is the scorecard of Approach Resources Inc.?s stock price action for the last one week going back to the last one year. The stock has moved 15.89%% in the past week, and it has moved 20.08%% in the past one month.

The stock has moved -10.48% over the past three months of one quarter. Year-to-date, the stock has moved -10.75%, compared with a movement of 21.05% in the last 12 months.

Other than stock performance, where does Approach Resources Inc. stand financially? The company finished the latest quarter with cash balance of 21,000%, bringing its total assets at the end of the quarter to $1.26B.