Archrock, Inc. (AROC) - What Are Investment Firms Saying About This Stock?

Key Points

• Analysts maintain a “Moderate Buy” consensus on Archrock, with 10 buy ratings and one sell rating and an average 12-month price target of $42.12. Recent target changes were mixed, including upgrades from RBC and reductions from JPMorgan and Wells Fargo.
• Institutional ownership is very high at 95.45%, with BlackRock, Bank of America, and other major investors establishing sizable positions during the second quarter.
• Archrock’s latest quarterly results missed expectations, with EPS of $0.38 versus $0.45 expected and revenue down 3.1% year over year; however, the company raised its quarterly dividend to $0.23 per share, implying a 3.1% annualized yield.

Archrock, Inc. (NYSE:AROC - Get Free Report) has received a consensus rating of "Moderate Buy" from the eleven brokerages that are currently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating and ten have assigned a buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $42.12.

AROC has been the subject of several analyst reports. Zacks Research downgraded shares of Archrock from a "hold" rating to a "strong sell" rating in a report on Monday, August 31st. Weiss Ratings lowered shares of Archrock from a "buy (a-)" rating to a "buy (b)" rating in a research report on Tuesday, August 11th. Royal Bank Of Canada upped their price target on shares of Archrock from $44.00 to $46.00 and gave the stock an "outperform" rating in a report on Monday, August 17th. JPMorgan Chase & Co. decreased their price target on shares of Archrock from $42.00 to $41.00 and set an "overweight" rating on the stock in a report on Thursday, October 8th. Finally, Wells Fargo & Company lowered their price objective on Archrock from $43.00 to $40.00 and set an "overweight" rating on the stock in a research report on Thursday, August 6th.

Hedge Funds Weigh In On Archrock

A number of institutional investors have recently added to or reduced their stakes in AROC. BlackRock Inc. bought a new stake in shares of Archrock in the 2nd quarter worth approximately $1,217,511,000. Bank of America Corp DE bought a new position in shares of Archrock during the second quarter valued at about $262,070,000. Bank of New York Mellon Corp purchased a new position in shares of Archrock in the second quarter worth about $84,463,000. Energy Income Partners LLC purchased a new position in shares of Archrock in the second quarter worth about $58,510,000. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Archrock in the second quarter worth about $51,617,000. 95.45% of the stock is currently owned by institutional investors.

Archrock Price Performance

AROC stock opened at $29.78 on Thursday. The firm has a 50 day moving average of $31.64 and a 200-day moving average of $34.93. The firm has a market capitalization of $5.22 billion, a P/E ratio of 16.01, a price-to-earnings-growth ratio of 1.48 and a beta of 0.92. Archrock has a 12 month low of $22.88 and a 12 month high of $42.23. The company has a current ratio of 1.39, a quick ratio of 0.94 and a debt-to-equity ratio of 1.51.

Archrock (NYSE:AROC - Get Free Report) last posted its earnings results on Wednesday, August 5th. The energy company reported $0.38 earnings per share for the quarter, missing analysts' consensus estimates of $0.45 by ($0.07). The firm had revenue of $371.24 million for the quarter, compared to the consensus estimate of $393.19 million. Archrock had a return on equity of 22.22% and a net margin of 21.84%. The business's revenue was down 3.1% on a year-over-year basis. During the same period last year, the company posted $0.39 EPS. As a group, sell-side analysts predict that Archrock will post 1.73 earnings per share for the current fiscal year.

Archrock Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 11th. Investors of record on Tuesday, August 4th were given a dividend of $0.23 per share. The ex-dividend date was Tuesday, August 4th. This is a positive change from Archrock's previous quarterly dividend of $0.22. This represents a $0.92 annualized dividend and a yield of 3.1%. Archrock's dividend payout ratio (DPR) is presently 49.46%.

About Archrock

Archrock, Inc NYSE: AROC is a Houston-based provider of natural gas compression services and equipment. The company supports the production, gathering, processing, transportation and storage of natural gas by supplying compression infrastructure that helps maintain pressure and move gas through energy systems.

Archrock's principal business is contract compression, in which it owns and operates a fleet of natural gas compressors and provides them to customers under service agreements.

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