Archrock, Inc. (NYSE:AROC) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Nine of 10 covering firms rate Archrock a buy, while one recommends selling. The average 12-month price target is $42.29, above the reported share price of $31.59.
• Archrock’s latest quarter fell short of expectations, with EPS of $0.38 versus the $0.45 consensus and revenue of $371.24 million versus $393.19 million; revenue declined 3.1% year over year.
• The company raised its quarterly dividend to $0.23 per share, representing an annualized payout of $0.92 and a 2.9% yield. Institutional investors own approximately 95.45% of the stock.

Shares of Archrock, Inc. (NYSE:AROC - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the ten ratings firms that are covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation and nine have issued a buy recommendation on the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $42.2857.

A number of research firms have issued reports on AROC. Wells Fargo & Company cut their price target on Archrock from $43.00 to $40.00 and set an "overweight" rating for the company in a research note on Thursday, August 6th. Royal Bank Of Canada lifted their price objective on shares of Archrock from $44.00 to $46.00 and gave the stock an "outperform" rating in a report on Monday, August 17th. 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. Finally, Evercore set a $40.00 price objective on shares of Archrock in a research report on Monday, August 17th.

Archrock Stock Performance

Shares of Archrock stock opened at $31.59 on Friday. The business has a 50-day simple moving average of $33.85 and a 200 day simple moving average of $35.65. Archrock has a one year low of $22.88 and a one year high of $42.23. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.39 and a quick ratio of 0.94. The firm has a market capitalization of $5.54 billion, a price-to-earnings ratio of 16.98, a PEG ratio of 1.52 and a beta of 0.86.

Archrock (NYSE:AROC - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The energy company reported $0.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.07). Archrock had a return on equity of 22.22% and a net margin of 21.84%.The firm had revenue of $371.24 million during the quarter, compared to the consensus estimate of $393.19 million. During the same quarter in the previous year, the company posted $0.39 EPS. The firm's revenue was down 3.1% on a year-over-year basis. On average, research analysts anticipate 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. Stockholders of record on Tuesday, August 4th were issued a $0.23 dividend. This is a boost from Archrock's previous quarterly dividend of $0.22. This represents a $0.92 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Tuesday, August 4th. Archrock's dividend payout ratio is currently 49.46%.

Institutional Trading of Archrock

A number of hedge funds have recently bought and sold shares of AROC. Valued Wealth Advisors LLC purchased a new position in Archrock in the first quarter worth $26,000. Summit Securities Group LLC purchased a new stake in shares of Archrock during the 1st quarter valued at $36,000. Covestor Ltd raised its stake in shares of Archrock by 234.9% during the 4th quarter. Covestor Ltd now owns 1,410 shares of the energy company's stock worth $37,000 after purchasing an additional 989 shares during the period. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Archrock during the 2nd quarter worth $56,000. Finally, Clearstead Advisors LLC boosted its holdings in shares of Archrock by 106.1% in the 4th quarter. Clearstead Advisors LLC now owns 2,496 shares of the energy company's stock worth $65,000 after buying an additional 1,285 shares during the last quarter. 95.45% of the stock is currently owned by institutional investors.

Archrock Company Profile

Archrock, Inc NYSE: AROC is a Houston-based energy infrastructure company that provides natural gas compression services in the United States. Compression is used to increase the pressure of natural gas so it can be gathered, processed, transported, stored and delivered through pipeline systems. Archrock serves customers across major U.S. natural gas production and pipeline regions.

The company primarily operates through contract compression services, supplying compression equipment and related field services under customer agreements.

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