Archrock, Inc. (NYSE:AROC) Plans Dividend Increase - $0.23 Per Share

Key Points

• Archrock raised its quarterly dividend to $0.23 per share, up 4.5% from $0.22, with the dividend payable on August 11 to shareholders of record on August 4.
• The new payout implies an annualized dividend of $0.88 per share and a 2.4% yield, and analysts say the dividend remains well covered by earnings.
• The company recently reported quarterly EPS of $0.42, missing estimates, though revenue still rose 7.7% year over year; meanwhile, several insiders have sold shares in recent months.

Archrock, Inc. (NYSE:AROC - Get Free Report) announced a quarterly dividend on Thursday, July 23rd. Stockholders of record on Tuesday, August 4th will be given a dividend of 0.23 per share by the energy company on Tuesday, August 11th. This represents a c) annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, August 4th. This is a 4.5% increase from Archrock's previous quarterly dividend of $0.22.

Archrock has increased its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 3 years. Archrock has a dividend payout ratio of 47.8% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Archrock to earn $2.29 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 38.4%.

Archrock Trading Up 0.1%

Shares of Archrock stock opened at $38.38 on Friday. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.41 and a quick ratio of 0.91. Archrock has a 1 year low of $21.17 and a 1 year high of $42.23. The company has a market capitalization of $6.73 billion, a P/E ratio of 20.86, a P/E/G ratio of 1.68 and a beta of 0.84. The business has a 50 day moving average price of $37.17 and a 200 day moving average price of $34.76.

Archrock (NYSE:AROC - Get Free Report) last posted its earnings results on Tuesday, May 5th. The energy company reported $0.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.47 by ($0.05). The company had revenue of $373.77 million during the quarter, compared to analysts' expectations of $378.36 million. Archrock had a net margin of 21.45% and a return on equity of 22.89%. The firm's quarterly revenue was up 7.7% on a year-over-year basis. Sell-side analysts anticipate that Archrock will post 1.9 EPS for the current fiscal year.

Insider Buying and Selling at Archrock

In other news, SVP Jason Ingersoll sold 33,000 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $38.19, for a total transaction of $1,260,270.00. Following the sale, the senior vice president owned 277,454 shares in the company, valued at $10,595,968.26. This trade represents a 10.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Doug S. Aron sold 35,000 shares of Archrock stock in a transaction on Monday, May 18th. The shares were sold at an average price of $38.30, for a total value of $1,340,500.00. Following the completion of the sale, the chief financial officer directly owned 359,337 shares of the company's stock, valued at approximately $13,762,607.10. This represents a 8.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 158,000 shares of company stock worth $5,907,370 in the last 90 days. Insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Royal Bank of Canada boosted its position in shares of Archrock by 0.7% in the first quarter. Royal Bank of Canada now owns 95,866 shares of the energy company's stock worth $2,514,000 after acquiring an additional 667 shares during the last quarter. Jones Financial Companies Lllp increased its position in Archrock by 217.9% during the first quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company's stock worth $35,000 after purchasing an additional 902 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in Archrock by 482.9% during the second quarter. EverSource Wealth Advisors LLC now owns 2,699 shares of the energy company's stock worth $67,000 after purchasing an additional 2,236 shares during the period. First Trust Advisors LP raised its stake in Archrock by 24.6% during the second quarter. First Trust Advisors LP now owns 279,100 shares of the energy company's stock worth $6,930,000 after purchasing an additional 55,059 shares during the period. Finally, Daiwa Securities Group Inc. boosted its holdings in shares of Archrock by 19.8% in the 2nd quarter. Daiwa Securities Group Inc. now owns 9,700 shares of the energy company's stock valued at $241,000 after purchasing an additional 1,600 shares during the last quarter. Institutional investors and hedge funds 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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