Latest news with #AnteroResourcesCorporation
Yahoo
14-05-2025
- Business
- Yahoo
Antero Resources Corporation (AR): Among the Stocks Analysts Are Upgrading Today
We recently compiled a list of the . In this article, we are going to take a look at where Antero Resources Corporation (NYSE:AR) stands against the other stocks analysts are upgrading today. The easing of the US-China trade war is the catalyst driving equity markets higher after weeks of heightened volatility. Major US indices are once again back into positive territory after recouping all the losses accrued in the aftermath of the U.S. waging a ferocious trade war in the race to settle a long-running trade deficit. 'And just like that, the markets' twin fears — a tariff-induced recession and sticky inflation — have been greatly assuaged,' said Chris Zaccarelli, chief investment officer at Northlight Asset Management. 'We're still concerned that high valuations and market concentration remain risks to much higher stock prices this year, but in the short run, markets should love this data and continue yesterday's (China-trade) celebration.' The Magnificent Seven club members added over $800 billion in market value in the aftermath of the U.S. and China pausing most tariffs on each other's goods. As trade tensions between the two greatest economies in the world threatened to disrupt supply chains and harm some of the top U.S. enterprises, technology equities, including semiconductor companies and smartphone manufacturers, were impacted significantly. However, after negotiations between the United States and China resulted in a brief halt to "reciprocal" duties, investors exhaled with relief. A 90-day tariff delay agreed to by the United States and China relieved Wall Street. 'With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months. This morning is a huge win for the bulls and a best case scenario post this weekend in our view,' Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Monday. Adding to the gains following tariff relief was softer-than-expected inflation data that affirmed the case for a Federal Reserve interest rate cut in June. In April, the consumer price index, a broad indicator of the expenses of goods and services across the U.S. economy, rose 2.3% annually. According to a Dow Jones poll of economists, last month's inflation rate was projected to stay at 2.4% year over year. The much lower inflation level amid a waging tariff war has heightened the case for the U.S. central bank to cut rates, which works in favor of equities. Consequently, analysts on Wall Street have been aggressive in upgrading stocks initially battered by concerns of the long-term impact of a vicious U.S.-China trade war. With the 90-day truce, awaiting further negotiations, analysts expect heightened trading activities between the two nations, which is a positive for business. We sifted through financial media reports to compile a list of 10 stocks analysts are upgrading today, on May 13. We then settled on the top 10 stocks that have received an analyst upgrade and ranked them in ascending order based on their average upside potential. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A fleet of tanker trucks transporting oil and natural gas, amidst the backdrop of open Resources Corporation (NYSE:AR) is an independent oil and natural gas Company that develops, produces, explores, and acquires natural gas, natural gas liquids (NGLs), and oil properties. The stock has continued outperforming the overall sector despite oil prices plunging to multi-year lows. Likewise, analysts at Mizuho have upgraded Antero Resources Corporation (NYSE:AR) from a 'Neutral' to an 'Outperform' and hiked the price target to $49 from $47. The upgrade comes as the company delivered solid first-quarter 2025 results and adjusted its integrated oil models. Net income totaled $208 million and adjusted net income rose to $247 million. Adjusted EBITDAX surged 110% to $549 million, and operating cash flow climbed 75% to $458 million. Even though the analyst firm expects a significant decline in oil prices, it also projects a significant improvement in gas and refining fundamentals, which should benefit Antero Resources over the next year. Mizuho has also raised its gas forecast for the US by 15%, convinced of an undersupplied market which should benefit Antero Resources Corporation (NYSE:AR). Additionally, the firm projects enhanced refining fundamentals given the tight inventory. Antero Resources also returned value to shareholders, repurchasing 2.7 million shares for $92 million. Overall AR ranks 3rd on our list of the stocks analysts are upgrading today. While we acknowledge the potential of AR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AR but that trades at less than 5 times its earnings check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
05-05-2025
- Business
- Yahoo
Antero Resources Corporation (AR): One of the Most Undervalued Energy Stocks to Buy According to Hedge Funds
We recently published a list of the 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Antero Resources Corporation (NYSE:AR) stands against other undervalued energy stocks. As of the close of May 2, 2025, the overall energy sector is undervalued by 13.1%, as compared to the general market's undervaluation of 5.3%. The current downturn in the energy sector is primarily attributed to the current trade war sparked by President Trump's tariffs and its resultant forecasted global economic slowdown. Moreover, global crude oil prices have plunged heavily since last month, with the West Texas Intermediate (WTI) crude price currently hovering around the $56 mark – a level it last hit during the Covid-19 pandemic in 2021. READ ALSO: Top 15 Energy Companies With the Highest Upside Potential Crude oil took a fresh hit this weekend after OPEC+ stunned the market by announcing a larger-than-expected output increase for June. This follows a similar surge announced for May and signals a sharp reversal from the group's efforts to defend crude prices. It seems like Saudi Arabia has adopted a low-price strategy, aiming to discipline overproducing members like Kazakhstan and Iraq. This could also be a part of Riyadh's efforts to build good relations with Donald Trump, who has recently been calling on the Kingdom to increase production in order to bring prices down. Given the high volatility in the market, it comes as no surprise that short-sellers marginally increased their bets against oil and gas stocks in March, with short interest in the energy sector reaching 2.58% compared to 2.52% in February. That said, while oil may be presenting a bleak outlook, there are other sectors within the energy business that look very promising right now. A significant growth driver for the global energy industry is the ongoing AI boom and its accompanying power-hungry data centers. According to the International Energy Agency, the global electricity demand from data centers is set to more than double by 2030 to around 945 terawatt-hours (TWh), slightly more than the entire electricity consumption of Japan today. The rise of AI is also reshaping US power markets, as according to BNEF, the country's data center demand is projected to rise from 3.5% of total electricity demand today to 8.6% by 2035. Big Tech seems to have jumped headfirst into the AI boom, with commitments to invest hundreds of billions of dollars to build data centers and ensure their energy supply. In fact, this strategic move has injected new life into sectors such as nuclear, which has regained the spotlight after several tech giants met on the sidelines of the CERAWeek conference in March and signed a pledge to support the goal of at least tripling the world's nuclear energy capacity by 2050. That said, there have been concerns lately that the power demand required by the ballooning data center industry may have been overestimated, which led to several energy stocks posting significant declines not so long ago. However, the recently reported better-than-expected results from the cloud and AI businesses of some American tech giants suggest that these fears may have been overblown. Commercial real estate executives have stated that while there has been a 'pause' in some data center capex, it is likely to be temporary, with hundreds of billions of dollars still to be spent. A technician making adjustments to a natural gas pipeline entering a processing facility. To collect data for this article, we looked for companies operating in the energy sector with forward P/E ratios of below 15 as of the close of May 2, 2025. Then, we identified companies that have delivered substantial returns over the last five years, in order to steer clear of potential value traps. In the end, we selected companies with the highest number of hedge fund holders in the Insider Monkey database, as of Q4 2024. The following are the Most Undervalued Energy Stocks According to Hedge Funds. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). No. of Hedge Fund Holders: 66 Forward P/E Ratio as of May 2: 11.12 Next on our list of the Most Undervalued Energy Stocks is Antero Resources Corporation (NYSE:AR), an independent natural gas and liquids company operating in the Appalachian Basin. The company is the most integrated natural gas and NGL business in the US and one of the largest suppliers to the country's LNG market. Despite reporting strong growth in Q1 2025, Antero Resources Corporation (NYSE:AR) fell short of estimates as its adjusted EPS of $0.78 missed consensus by $0.1. The company's revenue of $1.35 billion also slightly fell below expectations by $44.54 million, despite shooting up by over 20.5% YoY. The strong growth was driven by a surge in the sales of natural gas and NGLs. AR also reported a substantial increase in net income, which climbed to $208 million, compared to $22.73 million in the previous year, reflecting improved operational efficiencies and cost management. Antero Resources Corporation (NYSE:AR) remains financially strong, generating free cash flow of $337 million during the quarter, significantly up from the $15.54 million it reported in the year-ago period. The company also reduced its debt by over $200 million in Q1 and repurchased $92 million of stock. Antero still has approximately $1 billion of capacity remaining on its current share repurchase program. With 14 billionaire holders in the IM database at the end of Q4 2024, Antero Resources Corporation (NYSE:AR) is ranked among Billionaire's 15 Favorite Oil and Gas Stocks Right Now. Overall, AR ranks 5th on our list of the most undervalued energy stocks to buy according to hedge funds. While we acknowledge the potential of AR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Is Antero Resources Corporation (NYSE:AR) a Small-Cap Energy Stock Hedge Funds Are Buying?
We recently published a list of the 15 Small-Cap Energy Stocks Hedge Funds Are Buying. In this article, we are going to take a look at where Antero Resources Corporation (NYSE:AR) stands against other small-cap energy stocks. On April 12, Bill Perkins, Skylar Capital Management CEO, appeared on 'Closing Bell Overtime' on CNBC to talk about how the energy sector is struggling due to fears of decreased fuel demand. Perkins discussed that the trade policy majorly drives the sentiment across the energy landscape and hence affects natural gas, energy stocks, bonds, and other related assets. Noting the difficulty in predicting the long-term outcome of these policies, he questioned whether the tariffs are temporary. The conversation then shifted to the impact of recent tariff announcements. Perkins acknowledged that natural gas prices initially performed better than other commodities following the announcements, which gives rise to speculations that LNG could become a key bargaining chip in future trade negotiations. He explained that, at the time, natural gas fundamentals were strong, and the US had the potential to use LNG exports as a diplomatic tool to help reduce trade deficits with other countries. However, Perkins acknowledged that the overarching macroeconomic fear of a global slowdown soon overshadowed these fundamentals, which affected both the crude oil and natural gas markets. As a result, prices dropped to levels that might stimulate some demand and offer a buffer against further declines, particularly if the tariff conflict drags on and risks pushing the economy into a recession or even a depression. Perkins also addressed the effect of price pressure on production, specifically referencing West Texas Intermediate (WTI) crude oil. He pointed out that WTI prices had reached a threshold (~$60 per barrel) where growth in the Permian Basin would likely halt or even decline. At these price levels, producers become reluctant to invest in new drilling, especially given the backwardated crude curve, which showed future prices at $58 to $59 per barrel. This scenario would not only limit oil production growth in the Permian but also reduce the output of associated natural gas from the region. Perkins described this production restraint as a bullish factor that could help offset some of the prevailing uncertainty. Perkins predicted that oil and gas executives would adopt a cautious tone in their commentary. He explained that, due to the unpredictability of the global macro environment, executives would likely let market signals guide their decisions about ramping up or scaling back drilling programs. We first sifted through the Finviz stock screener and Insider Monkey's Q4 2024 hedge funds database. For this article, we define small-cap stocks as those that trade between $10 billion and $30 billion. We then selected the top 15 stocks according to hedge funds and ranked them in ascending order of the number of hedge funds that have stakes in them. In cases where an equal number of hedge funds held two or more stocks, we used the market cap as a tiebreaker. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A fleet of tanker trucks transporting oil and natural gas, amidst the backdrop of open fields. Market Capitalization as of April 25: $10.99 billion Number of Hedge Fund Holders: 66 Antero Resources Corp. (NYSE:AR) is an independent oil and natural gas company that develops, produces, explores, and acquires natural gas, NGLs, and oil properties in the US. It operates in three segments: Exploration & Production, Marketing, and Equity Method Investment in Antero Midstream. Antero Resources Corporation's (NYSE:AR) domestic marketing efforts add to its pricing. It sells products to key distributors and end-users, which ensures premium pricing. In 2024, it realized a $1.41 per barrel premium over Mont Belvieu for its C3 plus NGLs, which was the highest in the company's history. This was amplified in Q4, with premiums averaging $3.09 per barrel. For 2025, Antero Resources Corporation (NYSE:AR) anticipates even higher annual export premiums and projects a range of $1.50-$2.50 per barrel premium to Mont Belvieu prices for its C3 plus NGLs. Antero Resources Corporation (NYSE:AR) also invested $22 million in land during the quarter, adding ~4,200 net acres and representing 15 incremental drilling locations. In 2025, the company has notably secured favorable pricing for almost all domestic propane sales and a substantial portion of export sales. A long-term butane contract, which was previously priced at a steep discount, has also been renegotiated to nearly Mont Belvieu flat pricing. Overall, AR ranks 2nd on our list of the small-cap energy stocks hedge funds are buying. While we acknowledge the growth potential of AR, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Antero Resources (AR): Among the Best Undervalued Energy Stocks to Invest in Now
We recently published a list of the 11 Best Undervalued Energy Stocks to Invest in Now. In this article, we are going to take a look at where Antero Resources Corporation (NYSE:AR) stands against other undervalued energy stocks. On March 18, Tortoise Capital senior portfolio manager Rob Thummel appeared on CNBC's 'Squawk on the Street' to discuss his outlook on the energy sector. He believes that natural gas is positioned to lead growth in the future within the energy sector. This natural gas demand is driven by electricity and energy exports. Thummel noted that the energy and tech sectors are converging due to advancements like AI and data centers. Electricity demand fuels natural gas consumption, while US energy exports help meet global needs for low-cost and low-carbon energy. He also highlighted that the US is now emerging as the largest exporter of LNG, even though it was an LNG importer just years ago. He anticipates that the US LNG exports will soon 2x in volume over time. Thummel also expects Europe and other countries to prioritize energy security and diversify their supply sources. This will ensure reliance on US energy exports. Thummel emphasized a focus on energy infrastructure companies while discussing his specific investment strategies as they tend to be stable and have high dividend yields even in uncertain market conditions. He thinks that the certainty provided by energy infrastructure investments in an otherwise volatile market should not be neglected. Such companies generate substantial annual cash flows while maintaining disciplined financial practices. Thummel thinks that the energy sector trades at a discount to historical valuations despite its fundamentals. This offers the potential for high returns. We used the Finviz stock screener to compile a list of the top energy stocks that had a forward P/E ratio under 15 as of April 10. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A fleet of tanker trucks transporting oil and natural gas, amidst the backdrop of open fields. Forward P/E Ratio as of April 10: 10.62 Number of Hedge Fund Holders: 66 Antero Resources Corporation (NYSE:AR) is an independent oil and natural gas company that develops, produces, explores, and acquires natural gas, NGLs, and oil properties in the US. It operates in three segments: Exploration & Production, Marketing, and Equity Method Investment in Antero Midstream. The company's Liquids and NGLs marketing segment achieved record differentials and premium pricing in 2024. The company realized a $1.41 per barrel premium over Mont Belvieu for its C3 plus NGLs, which was the highest in the company's history. This was amplified in Q4, with premiums averaging $3.09 per barrel. For 2025, the company anticipates even higher annual export premiums and projects a range of $1.50 to $2.50 per barrel premium to Mont Belvieu prices for its C3 plus NGLs. Antero Resources Corp.'s (NYSE:AR) domestic marketing efforts also contribute to its strong pricing. It sells products to key distributors and end-users, which ensures premium pricing. In 2025, the company has notably secured favorable pricing for almost all domestic propane sales and a substantial portion of export sales. A long-term butane contract, which was previously priced at a steep discount, has also been renegotiated to nearly Mont Belvieu flat pricing. Overall, AR ranks 6th on our list of the best undervalued energy stocks to invest in now. While we acknowledge the growth potential of AR, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
06-04-2025
- Business
- Yahoo
Institutional investors may overlook Antero Midstream Corporation's (NYSE:AM) recent US$771m market cap drop as long-term gains remain positive
Given the large stake in the stock by institutions, Antero Midstream's stock price might be vulnerable to their trading decisions The top 4 shareholders own 51% of the company Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. A look at the shareholders of Antero Midstream Corporation (NYSE:AM) can tell us which group is most powerful. With 57% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 9.0% in value last week. Still, the 21% one-year gains may have helped mitigate their overall losses. But they would probably be wary of future losses. Let's delve deeper into each type of owner of Antero Midstream, beginning with the chart below. View our latest analysis for Antero Midstream Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Antero Midstream already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Antero Midstream's earnings history below. Of course, the future is what really matters. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Antero Midstream is not owned by hedge funds. The company's largest shareholder is Antero Resources Corporation, with ownership of 29%. In comparison, the second and third largest shareholders hold about 8.4% and 7.5% of the stock. Our research also brought to light the fact that roughly 51% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that Antero Midstream Corporation insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$62m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying. The general public, who are usually individual investors, hold a 13% stake in Antero Midstream. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. We can see that public companies hold 29% of the Antero Midstream shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. It's always worth thinking about the different groups who own shares in a company. But to understand Antero Midstream better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Antero Midstream you should know about. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
