Archrock, Inc. (NYSE:AROC) Increases Dividend to $0.21 Per Share

Archrock, Inc. (NYSE:AROC - Get Free Report) declared a quarterly dividend on Thursday, July 24th, RTT News reports. Stockholders of record on Tuesday, August 5th will be paid a dividend of 0.21 per share by the energy company on Tuesday, August 12th. This represents a $0.84 annualized dividend and a dividend yield of 3.59%. This is a 10.5% increase from Archrock's previous quarterly dividend of $0.19.

Archrock has a payout ratio of 41.3% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Archrock to earn $1.37 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 55.5%.

Archrock Trading Up 1.6%

NYSE:AROC traded up $0.36 during mid-day trading on Thursday, hitting $23.37. The company had a trading volume of 1,409,147 shares, compared to its average volume of 1,397,671. Archrock has a fifty-two week low of $17.26 and a fifty-two week high of $30.44. The business's fifty day moving average is $24.60 and its two-hundred day moving average is $25.45. The company has a debt-to-equity ratio of 1.70, a quick ratio of 0.96 and a current ratio of 1.47. The firm has a market cap of $4.13 billion, a P/E ratio of 19.81, a P/E/G ratio of 1.22 and a beta of 1.08.

Archrock (NYSE:AROC - Get Free Report) last released its quarterly earnings data on Monday, May 5th. The energy company reported $0.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.03. The company had revenue of $347.16 million during the quarter, compared to analysts' expectations of $342.98 million. Archrock had a return on equity of 18.31% and a net margin of 16.38%. As a group, research analysts expect that Archrock will post 1.09 earnings per share for the current year.

Analysts Set New Price Targets

Separately, Sidoti raised Archrock to a "hold" rating in a research note on Wednesday, May 7th. One investment analyst has rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $26.67.

Archrock announced that its Board of Directors has authorized a share repurchase program on Monday, May 5th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the energy company to reacquire up to 1.2% of its stock through open market purchases. Stock buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Insider Transactions at Archrock

In related news, SVP Jason Ingersoll sold 42,036 shares of the business's stock in a transaction on Friday, May 9th. The shares were sold at an average price of $24.49, for a total transaction of $1,029,461.64. Following the completion of the transaction, the senior vice president directly owned 275,911 shares in the company, valued at $6,757,060.39. The trade was a 13.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.60% of the stock is currently owned by insiders.

Institutional Trading of Archrock

An institutional investor recently raised its position in Archrock stock. Royal Bank of Canada boosted its holdings in shares of Archrock, Inc. (NYSE:AROC - Free Report) by 0.7% during the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 95,866 shares of the energy company's stock after purchasing an additional 667 shares during the period. Royal Bank of Canada owned approximately 0.05% of Archrock worth $2,514,000 as of its most recent filing with the SEC. Institutional investors own 95.45% of the company's stock.

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.

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