Archrock, Inc. (NYSE:AROC) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• Archrock has a consensus “Buy” rating from ten analysts, with eight buys, one hold and one strong buy. The average 12-month price target is $41.71, above the reported $35.73 share price.
• Insiders sold 158,000 shares worth approximately $5.9 million during the last quarter, while institutional investors own 95.45% of Archrock’s outstanding stock.
• Archrock raised its quarterly dividend to $0.23 per share, representing an annualized dividend of $0.92 and a 2.6% yield. Its latest quarterly earnings of $0.42 per share fell short of the $0.47 analyst consensus, although revenue increased 7.7% year over year.

Archrock, Inc. (NYSE:AROC - Get Free Report) has earned a consensus rating of "Buy" from the ten research firms that are covering the firm, Marketbeat Ratings reports. One investment 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 1-year price objective among brokerages that have issued a report on the stock in the last year is $41.7143.

A number of research analysts have recently issued reports on the company. Royal Bank Of Canada boosted their price objective on Archrock from $41.00 to $44.00 and gave the company an "outperform" rating in a research note on Tuesday, July 21st. Stifel Nicolaus set a $41.00 target price on Archrock in a research note on Thursday, May 7th. Zacks Research cut Archrock from a "strong-buy" rating to a "hold" rating in a research note on Thursday, April 16th. Mizuho lifted their target price on Archrock from $38.00 to $40.00 and gave the stock an "outperform" rating in a report on Wednesday, June 3rd. Finally, Weiss Ratings raised Archrock from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Tuesday.

Insiders Place Their Bets

In other Archrock news, CFO Doug S. Aron sold 90,000 shares of the firm's stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $36.74, for a total value of $3,306,600.00. Following the completion of the sale, the chief financial officer directly owned 394,337 shares in the company, valued at approximately $14,487,941.38. This trade represents a 18.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Jason Ingersoll sold 33,000 shares of Archrock stock in a transaction on Monday, May 18th. The shares were sold at an average price of $38.19, for a total transaction of $1,260,270.00. Following the completion of the sale, the senior vice president directly owned 277,454 shares of the company's stock, valued at approximately $10,595,968.26. This trade represents a 10.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 158,000 shares of company stock worth $5,907,370 in the last quarter. 2.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Archrock

Institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada raised its stake in Archrock by 0.7% during the 1st quarter. Royal Bank of Canada now owns 95,866 shares of the energy company's stock worth $2,514,000 after buying an additional 667 shares during the period. Jones Financial Companies Lllp grew its stake in Archrock by 217.9% in the first quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company's stock valued at $35,000 after acquiring an additional 902 shares during the period. EverSource Wealth Advisors LLC grew its stake in Archrock by 482.9% in the second quarter. EverSource Wealth Advisors LLC now owns 2,699 shares of the energy company's stock valued at $67,000 after acquiring an additional 2,236 shares during the period. First Trust Advisors LP grew its stake in Archrock by 24.6% in the second quarter. First Trust Advisors LP now owns 279,100 shares of the energy company's stock valued at $6,930,000 after acquiring an additional 55,059 shares during the period. Finally, Daiwa Securities Group Inc. increased its holdings in shares of Archrock by 19.8% during the second quarter. Daiwa Securities Group Inc. now owns 9,700 shares of the energy company's stock valued at $241,000 after acquiring an additional 1,600 shares in the last quarter. Institutional investors own 95.45% of the company's stock.

Archrock Trading Up 0.9%

AROC opened at $35.73 on Friday. Archrock has a twelve month low of $21.17 and a twelve month high of $42.23. The company has a fifty day moving average of $36.92 and a 200-day moving average of $35.10. The stock has a market cap of $6.26 billion, a PE ratio of 19.42, a price-to-earnings-growth ratio of 1.55 and a beta of 0.84. The company has a quick ratio of 0.91, a current ratio of 1.41 and a debt-to-equity ratio of 1.57.

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

Archrock Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Tuesday, August 4th will be paid a $0.23 dividend. The ex-dividend date is Tuesday, August 4th. This represents a $0.92 annualized dividend and a dividend yield of 2.6%. This is an increase from Archrock's previous quarterly dividend of $0.22. Archrock's dividend payout ratio (DPR) is presently 47.83%.

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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