Archrock, Inc. (NYSE:AROC) Receives Average Rating of "Buy" from Analysts

Key Points

• Archrock has a consensus analyst rating of Buy, with 10 analysts covering the stock and an average 12-month price target of about $40.86.
• The company recently reported Q1 earnings of $0.42 per share, missing estimates, while revenue of $373.77 million came in slightly below expectations but rose 7.7% year over year.
• Archrock also declared a quarterly dividend of $0.22 per share, equal to a 2.4% yield, even as insiders sold shares in recent months.

Shares of Archrock, Inc. (NYSE:AROC - Get Free Report) have earned a consensus recommendation of "Buy" from the ten analysts that are currently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $40.8571.

A number of equities research analysts have commented on AROC shares. Raymond James Financial reissued an "outperform" rating and set a $46.00 price objective on shares of Archrock in a report on Thursday, May 7th. Wall Street Zen lowered shares of Archrock from a "buy" rating to a "hold" rating in a research note on Sunday, March 8th. Mizuho raised their target price on shares of Archrock from $32.00 to $38.00 and gave the company an "outperform" rating in a research note on Thursday, April 2nd. Citigroup raised their target price on shares of Archrock from $40.00 to $43.00 and gave the company a "buy" rating in a research note on Wednesday. Finally, Stifel Nicolaus set a $41.00 target price on shares of Archrock in a research note on Thursday, May 7th.

Archrock Stock Down 0.1%

Shares of NYSE:AROC opened at $37.41 on Monday. Archrock has a 12 month low of $21.17 and a 12 month high of $40.12. The company's 50-day moving average price is $36.29 and its two-hundred day moving average price is $30.55. The company has a quick ratio of 0.91, a current ratio of 1.41 and a debt-to-equity ratio of 1.57. The firm has a market cap of $6.56 billion, a P/E ratio of 20.33, a P/E/G ratio of 1.60 and a beta of 0.94.

Archrock (NYSE:AROC - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The energy company reported $0.42 EPS for the quarter, missing analysts' consensus estimates of $0.47 by ($0.05). Archrock had a return on equity of 22.89% and a net margin of 21.45%.The company had revenue of $373.77 million for the quarter, compared to the consensus estimate of $378.36 million. Archrock's quarterly revenue was up 7.7% on a year-over-year basis. As a group, research analysts forecast that Archrock will post 1.95 EPS for the current fiscal year.

Archrock Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Tuesday, May 12th will be paid a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, May 12th. Archrock's dividend payout ratio (DPR) is 47.83%.

Insider Activity

In other news, CAO Donna A. Henderson sold 10,413 shares of the firm's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $36.74, for a total value of $382,573.62. Following the transaction, the chief accounting officer owned 27,757 shares of the company's stock, valued at approximately $1,019,792.18. This trade represents a 27.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Doug S. Aron sold 98,050 shares of the firm's stock in a transaction dated Monday, March 30th. The shares were sold at an average price of $34.76, for a total transaction of $3,408,218.00. Following the completion of the transaction, the chief financial officer directly owned 484,337 shares in the company, valued at $16,835,554.12. This trade represents a 16.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 179,963 shares of company stock worth $6,336,907 in the last ninety days. Insiders own 2.90% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. American Century Companies Inc. raised its position in shares of Archrock by 3.3% in the 3rd quarter. American Century Companies Inc. now owns 6,077,999 shares of the energy company's stock valued at $159,912,000 after acquiring an additional 191,914 shares during the period. Allianz Asset Management GmbH raised its position in shares of Archrock by 19.8% in the 3rd quarter. Allianz Asset Management GmbH now owns 264,991 shares of the energy company's stock valued at $6,972,000 after acquiring an additional 43,872 shares during the period. JPMorgan Chase & Co. raised its position in shares of Archrock by 17.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 438,624 shares of the energy company's stock valued at $11,540,000 after acquiring an additional 64,041 shares during the period. Fox Run Management L.L.C. acquired a new stake in shares of Archrock in the 3rd quarter valued at approximately $1,657,000. Finally, Dimensional Fund Advisors LP raised its position in shares of Archrock by 3.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 6,722,072 shares of the energy company's stock valued at $176,858,000 after acquiring an additional 207,978 shares during the period. 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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