Archrock (NYSE:AROC) Given New $40.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised its price target to $40 (from $39) and kept an "overweight" rating, implying about a 15% upside from the stock's recent close.
• Several other analysts (including Citigroup and Stifel) also lifted targets to $40, leaving Archrock with a consensus "Buy" rating and an average target of $37.00.
• Archrock beat Q4 EPS estimates ($0.69 vs. $0.40) with solid margins and ROE, and the stock has seen sizable institutional buying—institutional investors now own roughly 95.45% of the shares.

Archrock (NYSE:AROC - Get Free Report) had its price objective hoisted by analysts at Wells Fargo & Company from $39.00 to $40.00 in a research note issued on Friday,Benzinga reports. The firm presently has an "overweight" rating on the energy company's stock. Wells Fargo & Company's price target would suggest a potential upside of 15.07% from the stock's previous close.

Other equities research analysts also recently issued reports about the company. Citigroup lifted their price objective on Archrock from $31.00 to $40.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. Dawson James reissued an "outperform" rating on shares of Archrock in a research report on Wednesday, February 25th. Stifel Nicolaus lifted their price target on shares of Archrock from $31.00 to $40.00 and gave the stock a "buy" rating in a research note on Thursday, February 26th. Wall Street Zen downgraded shares of Archrock from a "buy" rating to a "hold" rating in a research note on Sunday, March 8th. Finally, Zacks Research raised shares of Archrock from a "hold" rating to a "strong-buy" rating in a report on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Archrock has a consensus rating of "Buy" and an average target price of $37.00.

Archrock Stock Down 0.9%

NYSE:AROC traded down $0.31 on Friday, reaching $34.76. The stock had a trading volume of 220,470 shares, compared to its average volume of 1,593,831. The company has a 50-day moving average of $30.84 and a 200 day moving average of $26.95. The company has a current ratio of 1.54, a quick ratio of 0.99 and a debt-to-equity ratio of 1.62. The stock has a market cap of $6.08 billion, a P/E ratio of 19.07, a price-to-earnings-growth ratio of 1.49 and a beta of 0.87. Archrock has a 12-month low of $20.12 and a 12-month high of $37.26.

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

Insider Buying and Selling at Archrock

In related news, CAO Donna A. Henderson sold 10,413 shares of the company's stock in a transaction that occurred 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 sale, the chief accounting officer directly owned 27,757 shares of the company's stock, valued at approximately $1,019,792.18. This represents a 27.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 2.60% of the company's stock.

Institutional Trading of Archrock

Institutional investors have recently added to or reduced their stakes in the business. Vaughan Nelson Investment Management L.P. bought a new position in shares of Archrock in the 4th quarter worth about $61,144,000. Neuberger Berman Group LLC boosted its holdings in shares of Archrock by 9,756.7% in the 4th quarter. Neuberger Berman Group LLC now owns 1,293,002 shares of the energy company's stock valued at $33,644,000 after buying an additional 1,279,884 shares during the period. Stephens Investment Management Group LLC bought a new stake in shares of Archrock during the 4th quarter valued at about $32,904,000. HITE Hedge Asset Management LLC acquired a new stake in Archrock during the third quarter worth about $19,603,000. Finally, Norges Bank bought a new position in Archrock in the fourth quarter worth about $18,721,000. Institutional investors own 95.45% of the company's stock.

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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