Brokerages Set Archrock, Inc. (NYSE:AROC) Target Price at $30.00

Key Points

• Archrock, Inc. (NYSE:AROC) has received a consensus recommendation of “Moderate Buy” from seven research firms, with an average 1-year target price of $30.00.
• The company recently announced an increase in its quarterly dividend to $0.21 per share, representing an annual yield of 3.5%.
• Archrock reported a quarterly earnings per share (EPS) of $0.39, exceeding analyst expectations and marking a revenue increase of 41.6% from the previous year.

Shares of Archrock, Inc. (NYSE:AROC - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the seven ratings firms that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $30.00.

AROC has been the subject of several recent analyst reports. Evercore ISI reduced their target price on Archrock from $32.00 to $31.00 and set an "outperform" rating for the company in a report on Wednesday, August 6th. Wells Fargo & Company initiated coverage on Archrock in a report on Wednesday, September 3rd. They issued an "overweight" rating and a $30.00 target price for the company. Finally, Mizuho upped their target price on Archrock from $31.00 to $32.00 and gave the company an "outperform" rating in a report on Friday, August 29th.

Archrock Stock Down 1.6%

Shares of Archrock stock traded down $0.40 on Wednesday, hitting $24.41. The company had a trading volume of 1,150,065 shares, compared to its average volume of 1,394,748. The stock has a market capitalization of $4.29 billion, a price-to-earnings ratio of 18.49, a P/E/G ratio of 1.26 and a beta of 1.14. Archrock has a 1 year low of $19.23 and a 1 year high of $30.44. The stock has a 50 day moving average of $23.83 and a 200-day moving average of $24.41. The company has a debt-to-equity ratio of 1.86, a quick ratio of 1.30 and a current ratio of 1.81.

Archrock (NYSE:AROC - Get Free Report) last issued its quarterly earnings data on Monday, August 4th. The energy company reported $0.39 EPS for the quarter, topping the consensus estimate of $0.37 by $0.02. The firm had revenue of $383.15 million during the quarter, compared to the consensus estimate of $366.34 million. Archrock had a return on equity of 18.74% and a net margin of 17.17%.The company's quarterly revenue was up 41.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.23 earnings per share. As a group, sell-side analysts forecast that Archrock will post 1.09 earnings per share for the current year.

Archrock Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 12th. Stockholders of record on Tuesday, August 5th were issued a $0.21 dividend. This is a boost from Archrock's previous quarterly dividend of $0.19. This represents a $0.84 annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend was Tuesday, August 5th. Archrock's dividend payout ratio is currently 63.64%.

Insider Activity

In other Archrock news, SVP Eric W. Thode sold 10,000 shares of the stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $23.54, for a total transaction of $235,400.00. Following the completion of the transaction, the senior vice president directly owned 224,809 shares of the company's stock, valued at approximately $5,292,003.86. This represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 2.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Archrock

Hedge funds have recently made changes to their positions in the company. Ameriprise Financial Inc. grew its stake in shares of Archrock by 3.6% during the 4th quarter. Ameriprise Financial Inc. now owns 524,824 shares of the energy company's stock worth $13,063,000 after acquiring an additional 18,467 shares during the period. Balyasny Asset Management L.P. bought a new position in shares of Archrock during the 4th quarter worth $1,035,000. Captrust Financial Advisors grew its stake in shares of Archrock by 11.0% during the 4th quarter. Captrust Financial Advisors now owns 16,096 shares of the energy company's stock worth $401,000 after acquiring an additional 1,601 shares during the period. Deutsche Bank AG grew its stake in shares of Archrock by 33.0% during the 4th quarter. Deutsche Bank AG now owns 233,220 shares of the energy company's stock worth $5,805,000 after acquiring an additional 57,873 shares during the period. Finally, Focus Partners Wealth bought a new position in shares of Archrock during the 4th quarter worth $209,000. 95.45% of the stock is currently owned by institutional investors.

Archrock Company Profile

Archrock, Inc, together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services.