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

Key Points

• Archrock has a “Moderate Buy” consensus rating: Nine of 10 analysts recommend buying the stock, with one hold rating and an average 12-month price target of $42.29.
• The company reported quarterly EPS of $0.38, below the $0.45 analyst consensus, while revenue of $371.24 million also missed estimates and declined 3.1% year over year.
• Archrock raised its quarterly dividend to $0.23 per share, equating to an annualized payout of $0.92 and a 3.0% yield; institutional investors and hedge funds own 95.45% of the stock.

Shares of Archrock, Inc. (NYSE:AROC - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the ten ratings firms that are currently covering the firm, Marketbeat reports. One research analyst has rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $42.2857.

A number of equities research analysts have issued reports on AROC shares. Stifel Nicolaus set a $41.00 target price on Archrock in a research note on Thursday, May 7th. Raymond James Financial restated an "outperform" rating and set a $46.00 price target on shares of Archrock in a research report on Thursday, May 7th. Wells Fargo & Company dropped their price objective on shares of Archrock from $43.00 to $40.00 and set an "overweight" rating on the stock in a report 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 company an "outperform" rating in a research report on Monday, August 17th. Finally, Citigroup boosted their target price on shares of Archrock from $40.00 to $43.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th.

Archrock Price Performance

Shares of NYSE:AROC opened at $30.72 on Wednesday. The company has a quick ratio of 0.94, a current ratio of 1.39 and a debt-to-equity ratio of 1.51. Archrock has a fifty-two week low of $22.88 and a fifty-two week high of $42.23. The firm has a 50-day simple moving average of $36.22 and a 200 day simple moving average of $35.80. The company has a market cap of $5.39 billion, a PE ratio of 16.52, a P/E/G ratio of 1.42 and a beta of 0.86.

Archrock (NYSE:AROC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The energy company reported $0.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.45 by ($0.07). The business had revenue of $371.24 million during 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 in the prior year, the business earned $0.39 EPS. On average, sell-side analysts anticipate that Archrock will post 1.81 EPS for the current year.

Archrock Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, August 11th. Stockholders of record on Tuesday, August 4th were issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.0%. This is a boost from Archrock's previous quarterly dividend of $0.22. The ex-dividend date of this dividend was Tuesday, August 4th. Archrock's dividend payout ratio is presently 49.46%.

Hedge Funds Weigh In On Archrock

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in Archrock in the 2nd quarter valued at approximately $1,217,511,000. Invesco Ltd. boosted its position in Archrock by 5.5% during the 4th quarter. Invesco Ltd. now owns 8,719,020 shares of the energy company's stock worth $226,869,000 after acquiring an additional 457,569 shares during the period. California State Teachers Retirement System boosted its position in Archrock by 3,778.9% during the 2nd quarter. California State Teachers Retirement System now owns 7,859,880 shares of the energy company's stock worth $319,976,000 after acquiring an additional 7,657,246 shares during the period. State Street Corp grew its stake in shares of Archrock by 2.2% in the fourth quarter. State Street Corp now owns 7,018,889 shares of the energy company's stock worth $182,631,000 after purchasing an additional 152,312 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in shares of Archrock by 1.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 6,833,290 shares of the energy company's stock worth $177,805,000 after purchasing an additional 111,218 shares in the last quarter. 95.45% of the stock is currently owned by institutional investors and hedge funds.

About Archrock

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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