Archrock (NYSE:AROC) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Archrock (NYSE:AROC) from a "buy" to a "hold" rating in a report issued Sunday.
• Despite the downgrade, the consensus remains a Buy (one Strong Buy, nine Buy, one Hold) with a consensus target price of $36.86 and several firms (Citigroup, Wells Fargo, Raymond James) raising targets to around $39–$40.
• Archrock beat Q4 EPS estimates ($0.69 vs. $0.40), reported revenue of $377.07M (up 15.5% year-over-year), and its shares trade near $35.37 with a market cap of about $6.19 billion.

Archrock (NYSE:AROC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday.

Several other analysts also recently commented on the stock. Zacks Research raised shares of Archrock from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 3rd. Citigroup boosted their target price 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. Wells Fargo & Company increased their target price on shares of Archrock from $30.00 to $39.00 and gave the stock an "overweight" rating in a research note on Friday, February 27th. Dawson James restated an "outperform" rating on shares of Archrock in a report on Wednesday, February 25th. Finally, Raymond James Financial reaffirmed an "outperform" rating and issued a $40.00 price target on shares of Archrock in a research note on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Archrock has a consensus rating of "Buy" and a consensus target price of $36.86.

Archrock Stock Down 1.2%

Shares of Archrock stock opened at $35.37 on Friday. The stock's 50-day moving average is $30.06 and its 200 day moving average is $26.66. Archrock has a one year low of $20.12 and a one year high of $37.26. The firm has a market cap of $6.19 billion, a price-to-earnings ratio of 19.33, a PEG ratio of 1.47 and a beta of 0.87. The company has a debt-to-equity ratio of 1.62, a current ratio of 1.54 and a quick ratio of 0.99.

Archrock (NYSE:AROC - Get Free Report) last issued its earnings results on Tuesday, February 24th. The energy company reported $0.69 earnings per share for the quarter, topping analysts' consensus estimates of $0.40 by $0.29. Archrock had a return on equity of 23.57% and a net margin of 21.63%.The business had revenue of $377.07 million during the quarter, compared to the consensus estimate of $378.04 million. During the same period in the previous year, the company posted $0.34 earnings per share. The firm's revenue for the quarter was up 15.5% on a year-over-year basis. Equities research analysts anticipate that Archrock will post 1.09 EPS for the current year.

Insider Activity

In related news, CAO Donna A. Henderson sold 10,413 shares of Archrock stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $36.74, for a total value of $382,573.62. Following the completion of the sale, 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 transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 2.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of AROC. Invesco Ltd. boosted its holdings in Archrock by 1.4% during the second quarter. Invesco Ltd. now owns 9,080,037 shares of the energy company's stock worth $225,457,000 after purchasing an additional 128,141 shares during the last quarter. State Street Corp increased its stake in Archrock by 2.2% in the 4th quarter. State Street Corp now owns 7,018,889 shares of the energy company's stock valued at $182,631,000 after buying an additional 152,312 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in Archrock by 1.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 6,833,290 shares of the energy company's stock valued at $177,805,000 after buying an additional 111,218 shares during the last quarter. American Century Companies Inc. lifted its position in shares of Archrock by 3.3% during the 3rd quarter. American Century Companies Inc. now owns 6,077,999 shares of the energy company's stock worth $159,912,000 after buying an additional 191,914 shares in the last quarter. Finally, Sei Investments Co. lifted its position in shares of Archrock by 3.5% during the 3rd quarter. Sei Investments Co. now owns 5,499,093 shares of the energy company's stock worth $144,681,000 after buying an additional 187,252 shares in 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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