Archrock (NYSE:AROC) Given New $31.00 Price Target 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 - Free Report) had its target price cut by Evercore ISI from $32.00 to $31.00 in a research note issued to investors on Wednesday morning,Benzinga reports. They currently have an outperform rating on the energy company's stock.

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

Archrock Stock Up 1.7%

Archrock stock traded up $0.38 during trading hours on Wednesday, reaching $23.22. The stock had a trading volume of 1,240,129 shares, compared to its average volume of 1,690,229. Archrock has a 52 week low of $18.38 and a 52 week high of $30.44. The company has a market cap of $4.08 billion, a price-to-earnings ratio of 17.59, a PEG ratio of 1.20 and a beta of 1.10. The company has a debt-to-equity ratio of 1.86, a current ratio of 1.81 and a quick ratio of 0.96. The business's 50 day moving average price is $24.10 and its 200-day moving average price is $25.03.

Archrock (NYSE:AROC - Get Free Report) last issued its earnings results 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 company had revenue of $383.15 million during the quarter, compared to analyst estimates of $366.34 million. Archrock had a return on equity of 18.74% and a net margin of 17.17%. The firm's quarterly revenue was up 41.6% on a year-over-year basis. During the same quarter last year, the business posted $0.23 EPS. Sell-side analysts anticipate that Archrock will post 1.09 EPS for the current year.

Archrock announced that its Board of Directors has initiated a stock repurchase plan on Monday, May 5th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the energy company to purchase up to 1.2% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its shares are undervalued.

Archrock Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 12th. Shareholders of record on Tuesday, August 5th will be paid a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 3.6%. This is a positive change from Archrock's previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Tuesday, August 5th. Archrock's payout ratio is 63.64%.

Hedge Funds Weigh In On Archrock

A number of hedge funds have recently made changes to their positions in AROC. Farther Finance Advisors LLC grew its stake in shares of Archrock by 164.8% in the first quarter. Farther Finance Advisors LLC now owns 964 shares of the energy company's stock valued at $26,000 after buying an additional 600 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Archrock in the 1st quarter valued at about $33,000. Jones Financial Companies Lllp increased its stake in Archrock by 217.9% during the first quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company's stock worth $35,000 after purchasing an additional 902 shares during the period. TCTC Holdings LLC lifted its position in shares of Archrock by 119.6% during the first quarter. TCTC Holdings LLC now owns 1,599 shares of the energy company's stock worth $42,000 after purchasing an additional 871 shares in the last quarter. Finally, Bayforest Capital Ltd purchased a new stake in Archrock during the 1st quarter worth approximately $47,000. Hedge funds and other institutional investors own 95.45% of the company's stock.

Archrock Company Profile

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.