Archrock (NYSE:AROC) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Archrock to “strong sell” from “hold,” contrasting with the broader analyst consensus of “Moderate Buy,” supported by nine Buy ratings and one Sell rating.
• Archrock’s stock opened at $31.73, below the analyst consensus price target of $42.29. The shares have traded between $22.88 and $42.23 over the past year.
• The company’s latest quarterly results missed expectations: adjusted EPS was $0.38 versus the $0.45 estimate, while revenue fell 3.1% year over year to $371.24 million.

Archrock (NYSE:AROC - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday, Zacks reports.

Other equities research analysts also recently issued research reports about the company. Mizuho upped their price target on Archrock from $38.00 to $40.00 and gave the stock an "outperform" rating in a report on Wednesday, June 3rd. Stifel Nicolaus set a $41.00 target price on shares of Archrock in a research note on Thursday, May 7th. Weiss Ratings cut shares of Archrock from a "buy (a-)" rating to a "buy (b)" rating in a report on Tuesday, August 11th. Royal Bank Of Canada lifted their price target on shares of Archrock from $44.00 to $46.00 and gave the stock an "outperform" rating in a research note on Monday, August 17th. Finally, Evercore set a $40.00 price target on shares of Archrock in a report on Monday, August 17th. Nine research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $42.29.

Archrock Price Performance

Archrock stock opened at $31.73 on Monday. Archrock has a 52-week low of $22.88 and a 52-week high of $42.23. The company has a quick ratio of 0.94, a current ratio of 1.39 and a debt-to-equity ratio of 1.51. The firm's fifty day moving average is $35.65 and its 200 day moving average is $35.79. The company has a market cap of $5.56 billion, a price-to-earnings ratio of 17.06, a PEG ratio of 1.52 and a beta of 0.86.

Archrock (NYSE:AROC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The energy company reported $0.38 EPS for the quarter, missing analysts' consensus estimates of $0.45 by ($0.07). Archrock had a return on equity of 22.22% and a net margin of 21.84%.The business had revenue of $371.24 million during the quarter, compared to analysts' expectations of $393.19 million. During the same period in the previous year, the business earned $0.39 earnings per share. The business's quarterly revenue was down 3.1% on a year-over-year basis. Sell-side analysts forecast that Archrock will post 1.73 EPS for the current fiscal year.

Hedge Funds Weigh In On Archrock

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in Archrock during the second quarter worth about $1,217,511,000. California State Teachers Retirement System grew its position in Archrock by 3,778.9% during the second quarter. California State Teachers Retirement System now owns 7,859,880 shares of the energy company's stock worth $319,976,000 after buying an additional 7,657,246 shares during the period. Bank of America Corp DE purchased a new position in Archrock in the second quarter valued at about $262,070,000. Bank of New York Mellon Corp purchased a new position in Archrock in the second quarter valued at about $84,463,000. Finally, Energy Income Partners LLC acquired a new stake in shares of Archrock during the 2nd quarter valued at approximately $58,510,000. Hedge funds and other institutional investors own 95.45% of the company's stock.

About Archrock

Archrock, Inc is a Houston‐based provider of natural gas compression services and equipment to the oil and gas industry in North America. Founded in 2004, the company supplies both short‐term rentals and long‐term contracts for compression solutions, serving upstream and midstream producers. Archrock's offerings include engineered compression systems, aftermarket parts, maintenance and field services designed to optimize wellhead and pipeline operations.

The company's core business activities focus on the design, manufacture, rental and sale of gas compression equipment.

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