51.7 F
New York
Sunday, October 25, 2020

American Resources Corporation (NASDAQ:AREC) Stock is Plummeting, Here is Why

Must read

Renewed Optimism is Surrounding McDonald’s Corporation (NYSE:MCD)

McDonald's Corporation (MCD) shares are trading at higher $229.15 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Is Now the Time to Invest in Aeglea BioTherapeutics Inc. (NASDAQ:AGLE)?

Aeglea BioTherapeutics Inc. (AGLE) shares are trading at higher $8.03 and the avg recommendation for the stock is Moderate Buy. To add more color...

Alteryx Inc. (NYSE:AYX) is Gaining Momentum on Earnings Catalyst

Alteryx Inc. (AYX) shares are trading at lower $136.30 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Nutanix Inc. (NASDAQ:NTNX) on the Path to Profitability

Nutanix Inc. (NTNX) shares are trading at higher $25.05 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

American Resources Corporation (AREC) shares are trading at lower $2.12 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $2.00.

To add more color to this target, the company’s high over the last year is $4.93 and the low is $0.32. Over the last 52 weeks, AREC is up 226.15% while the S&P 500 is up 18.03%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, AREC reported a profit of $-0.44 million. American Resources Corporation also saw revenues decrease to $0.23 million. In addition, AREC has free cash flow of -$0.65 million as of 06-2020. The company’s EBITDA came in at -$2.2 million which compares well with its peers.

AREC Return on Equity (ROE) is 206.70%, and its Return on Assets is -117.90%. All told, it is clear that, AREC needs to be on your watchlist.

Find out when AREC reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AREC has a short ratio of 0.04 and outstanding shares of 26.83M.

Company Outlook

AREC has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -1.83. American Resources Corporation AREC also noted assets of $32.28 million at the end of the last quarter. Investors should also keep an eye on sector updates as AREC has historically followed its peers on positive news.

All told, American Resources Corporation AREC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AREC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

American Resources Corporation AREC is now commanding a market cap of 55.29M and a float of 7.72M. AREC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AREC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in AREC, either long or short, and we have not been compensated for this article.

Latest article

Genpact Limited (NYSE:G) Stock is Soaring, Here is Why

Genpact Limited (G) shares are trading at higher $36.98 and the avg recommendation for the stock is Strong Buy, while the current analyst price...

Microchip Technology Incorporated (NASDAQ:MCHP) is Holding Steady

Microchip Technology Incorporated (MCHP) shares are trading at higher $112.52 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Investor Confidence is Rising for Sysco Corporation (NYSE:SYY)

Sysco Corporation (SYY) shares are trading at higher $65.21 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Agenus Inc. (NASDAQ:AGEN) is Gaining Momentum on Earnings Catalyst

Agenus Inc. (AGEN) shares are trading at higher $4.08 and the avg recommendation for the stock is Strong Buy. To add more color to...

The Rejuvenation of Costco Wholesale Corporation (NASDAQ:COST)

Costco Wholesale Corporation (COST) shares are trading at lower $375.75 and the avg recommendation for the stock is Moderate Buy, while the current analyst...