Archrock, Inc. (NYSE:AROC) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Archrock has an average analyst rating of “Moderate Buy” from 11 firms (9 buys, 2 holds) with an average 1‑year target of $39 and several price targets recently raised to around $38–$40.
• Insiders sold a total of 179,963 shares (about $6.34M) in the last three months — including CFO Doug Aron’s sale of 98,050 shares — while institutional investors collectively own roughly 95.45% of the stock.
• Archrock beat quarterly EPS estimates ($0.69 vs. $0.40), posted revenue up 15.5% year‑over‑year, and raised its quarterly dividend to $0.22 (annualized $0.88, ~2.5% yield).

Archrock, Inc. (NYSE:AROC - Get Free Report) has received an average rating of "Moderate Buy" from the eleven ratings firms that are currently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $39.00.

Several analysts have issued reports on AROC shares. Royal Bank Of Canada upped their price target on shares of Archrock from $32.00 to $40.00 and gave the company an "outperform" rating in a research report on Monday, March 16th. Mizuho upped their price target on shares of Archrock from $32.00 to $38.00 and gave the company an "outperform" rating in a research report on Thursday, April 2nd. Raymond James Financial restated an "outperform" rating and set a $40.00 price target on shares of Archrock in a research report on Wednesday, February 25th. Citigroup upped their price target on shares of Archrock from $31.00 to $40.00 and gave the company a "buy" rating in a research report on Monday, March 2nd. Finally, Zacks Research lowered shares of Archrock from a "strong-buy" rating to a "hold" rating in a research report on Thursday, April 16th.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Archrock

Large investors have recently added to or reduced their stakes in the company. American Century Companies Inc. grew its holdings in Archrock by 3.3% in the 3rd quarter. American Century Companies Inc. now owns 6,077,999 shares of the energy company's stock worth $159,912,000 after acquiring an additional 191,914 shares during the last quarter. Allianz Asset Management GmbH grew its holdings in Archrock by 19.8% in the 3rd quarter. Allianz Asset Management GmbH now owns 264,991 shares of the energy company's stock worth $6,972,000 after acquiring an additional 43,872 shares during the last quarter. Dimensional Fund Advisors LP lifted 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 worth $176,858,000 after purchasing an additional 207,978 shares during the period. Fox Run Management L.L.C. purchased a new stake in shares of Archrock in the 3rd quarter worth about $1,657,000. Finally, Bernzott Capital Advisors lifted its position in shares of Archrock by 62.3% in the 3rd quarter. Bernzott Capital Advisors now owns 291,534 shares of the energy company's stock worth $7,670,000 after purchasing an additional 111,908 shares during the period. Institutional investors own 95.45% of the company's stock.

Archrock Stock Performance

NYSE AROC opened at $35.87 on Thursday. The company has a 50-day simple moving average of $35.21 and a two-hundred day simple moving average of $29.14. The company has a quick ratio of 0.99, a current ratio of 1.54 and a debt-to-equity ratio of 1.62. Archrock has a 12-month low of $21.17 and a 12-month high of $37.72. The firm has a market cap of $6.29 billion, a price-to-earnings ratio of 19.60, a PEG ratio of 1.54 and a beta of 0.91.

Archrock (NYSE:AROC - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The energy company reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.29. Archrock had a net margin of 21.63% and a return on equity of 23.57%. The business had revenue of $377.07 million during the quarter, compared to analyst estimates of $378.04 million. During the same period in the prior year, the business posted $0.34 earnings per share. The company's revenue was up 15.5% on a year-over-year basis. On average, equities analysts forecast that Archrock will post 1.9 EPS for the current year.

Archrock Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, February 18th. Shareholders of record on Tuesday, February 10th were issued a $0.22 dividend. This is a boost from Archrock's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Tuesday, February 10th. This represents a $0.88 dividend on an annualized basis and a yield of 2.5%. Archrock's payout ratio is 48.09%.

Archrock Company Profile

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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