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

Key Points

• Archrock has a consensus analyst rating of "Buy" from 10 brokerages, with eight buy ratings, one strong buy, and one hold; the average 12-month price target is about $41.14.
• The stock recently traded at $36.13, below the analyst average target and near its 50-day moving average, with a market cap of $6.33 billion.
• Archrock’s latest quarter missed expectations on both EPS and revenue, though revenue still rose 7.7% year over year; the company also pays a quarterly dividend of $0.22 per share, yielding about 2.4%.

Shares of Archrock, Inc. (NYSE:AROC - Get Free Report) have been assigned a consensus rating of "Buy" from the ten brokerages that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a hold recommendation, eight have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $41.1429.

Several equities research analysts recently commented on the stock. Stifel Nicolaus set a $41.00 price target on shares of Archrock in a research note on Thursday, May 7th. Weiss Ratings upgraded shares of Archrock from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Wednesday, May 6th. Mizuho lifted their price target on shares of Archrock from $38.00 to $40.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 3rd. Zacks Research lowered shares of Archrock from a "strong-buy" rating to a "hold" rating in a research note on Thursday, April 16th. Finally, Royal Bank Of Canada raised their price objective on shares of Archrock from $32.00 to $40.00 and gave the stock an "outperform" rating in a research report on Monday, March 16th.

Archrock Price Performance

Shares of NYSE:AROC opened at $36.13 on Friday. The company's fifty day moving average price is $36.28 and its 200 day moving average price is $32.07. Archrock has a 12 month low of $21.17 and a 12 month high of $40.12. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.41 and a quick ratio of 0.91. The firm has a market capitalization of $6.33 billion, a P/E ratio of 19.63, a P/E/G ratio of 1.53 and a beta of 0.87.

Archrock (NYSE:AROC - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The energy company reported $0.42 EPS for the quarter, missing the consensus estimate 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 analyst estimates of $378.36 million. The company's quarterly revenue was up 7.7% on a year-over-year basis. As a group, sell-side analysts predict that Archrock will post 1.95 earnings per share for the current fiscal year.

Archrock Dividend Announcement

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

Insider Transactions at Archrock

In related news, SVP Jason Ingersoll sold 33,000 shares of the firm's stock in a transaction dated 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 transaction, the senior vice president owned 277,454 shares of the company's stock, 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 filing with the SEC, which is available through this link. Also, CFO Doug S. Aron sold 98,050 shares of the firm's stock in a transaction dated Monday, March 30th. The stock was sold at an average price of $34.76, for a total value of $3,408,218.00. Following the transaction, the chief financial officer directly owned 484,337 shares in the company, valued at approximately $16,835,554.12. This represents a 16.84% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 327,550 shares of company stock worth $11,861,703. Corporate insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Archrock

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Invesco Ltd. grew its holdings in shares of Archrock by 5.5% during the fourth quarter. Invesco Ltd. now owns 8,719,020 shares of the energy company's stock worth $226,869,000 after buying an additional 457,569 shares during the last quarter. State Street Corp grew its holdings in shares of Archrock by 2.2% during the fourth quarter. State Street Corp now owns 7,018,889 shares of the energy company's stock worth $182,631,000 after buying an additional 152,312 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Archrock by 1.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 6,833,290 shares of the energy company's stock worth $177,805,000 after buying an additional 111,218 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Archrock by 3.3% in the third 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 in the last quarter. Finally, Sei Investments Co. boosted its holdings in shares of Archrock by 3.5% in the third quarter. Sei Investments Co. now owns 5,499,093 shares of the energy company's stock valued at $144,681,000 after acquiring an additional 187,252 shares in the last quarter. 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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