Investors are showing heightened interest in American Resources Corporation (AREC, Financial) as the company prepares to release its latest earnings report. Options trading volume is unusually high, with activity at more than ten times the normal level. This surge is characterized by a significant preference for call options over puts, with a ratio of 19:3 in favor of calls.
The implied volatility for AREC has risen sharply, indicating that the market is bracing for a substantial move of approximately 58.1%, or 77 cents, following the announcement of the earnings results. Historically, the stock has experienced a median movement of 3.2% in reaction to earnings over the past eight quarters.
This combination of elevated options activity and increased implied volatility suggests that traders are positioning themselves for a potentially significant reaction once American Resources releases its financial performance details.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for American Resources Corp (AREC, Financial) is $4.00 with a high estimate of $4.00 and a low estimate of $4.00. The average target implies an upside of 205.18% from the current price of $1.31. More detailed estimate data can be found on the American Resources Corp (AREC) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, American Resources Corp's (AREC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for American Resources Corp (AREC, Financial) in one year is $0.04, suggesting a downside of 96.95% from the current price of $1.3107. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the American Resources Corp (AREC) Summary page.
