Archrock (NYSE:AROC) Price Target Lowered to $31.00 at Evercore ISI

Key Points

• Evercore ISI has lowered its price target for Archrock from $32.00 to $31.00, while maintaining an "outperform" rating, indicating a potential upside of 36.22% based on the stock's previous close.
• Archrock reported a 41.6% year-over-year increase in quarterly revenue, achieving earnings per share of $0.39, which exceeded analysts' expectations of $0.37.
• The company's Board of Directors has approved a $50 million share repurchase plan, which is often seen as a signal that the stock is undervalued.

Archrock (NYSE:AROC - Get Free Report) had its price objective cut by equities research analysts at Evercore ISI from $32.00 to $31.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the energy company's stock. Evercore ISI's price target would indicate a potential upside of 36.22% from the stock's previous close.

Separately, Sidoti upgraded Archrock to a "hold" rating in a research note on Wednesday, May 7th. One equities research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $28.40.

Archrock Stock Up 3.4%

Shares of AROC opened at $22.76 on Wednesday. Archrock has a 52-week low of $18.38 and a 52-week high of $30.44. The company has a market capitalization of $4.02 billion, a PE ratio of 17.22, a price-to-earnings-growth ratio of 1.23 and a beta of 1.10. The stock has a fifty day simple moving average of $24.23 and a two-hundred day simple moving average of $25.18. The company has a quick ratio of 0.96, a current ratio of 1.47 and a debt-to-equity ratio of 1.70.

Archrock (NYSE:AROC - Get Free Report) last issued its quarterly earnings data on Monday, August 4th. The energy company reported $0.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.37 by $0.02. The firm had revenue of $383.15 million during the quarter, compared to the consensus estimate of $366.34 million. Archrock had a return on equity of 19.05% and a net margin of 17.17%. The company's quarterly revenue was up 41.6% on a year-over-year basis. During the same period last year, the company earned $0.23 EPS. As a group, equities analysts forecast that Archrock will post 1.09 EPS for the current year.

Archrock declared that its Board of Directors has approved a share repurchase plan on Monday, May 5th that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the energy company to reacquire up to 1.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling

In other Archrock news, SVP Jason Ingersoll sold 42,036 shares of the stock in a transaction that occurred on Friday, May 9th. The stock was sold at an average price of $24.49, for a total transaction of $1,029,461.64. Following the transaction, the senior vice president owned 275,911 shares of the company's stock, valued at $6,757,060.39. This trade represents a 13.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Corporate insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Nuveen LLC acquired a new stake in Archrock in the 1st quarter valued at approximately $43,092,000. Raymond James Financial Inc. acquired a new position in shares of Archrock during the 4th quarter valued at $36,241,000. Invesco Ltd. boosted its stake in shares of Archrock by 12.8% during the 4th quarter. Invesco Ltd. now owns 8,883,949 shares of the energy company's stock worth $221,121,000 after acquiring an additional 1,008,438 shares in the last quarter. Driehaus Capital Management LLC bought a new stake in shares of Archrock during the 1st quarter worth $25,374,000. Finally, Millennium Management LLC boosted its stake in shares of Archrock by 186.0% during the 4th quarter. Millennium Management LLC now owns 1,047,346 shares of the energy company's stock worth $26,068,000 after acquiring an additional 681,160 shares in the last quarter. Institutional investors own 95.45% of the company's stock.

About Archrock

Archrock, Inc, together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services.

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