Archrock, Inc. (NYSE:AROC) Stock Has Average Price Target of $42.12

Key Points

• Analysts are moderately bullish: Nine of 10 covering analysts rate Archrock a buy, and the average 12-month price target is $42.12, compared with the shares’ Monday open of $27.59.
• Archrock reported quarterly EPS of $0.49, beating the $0.45 consensus estimate, while revenue of $370.81 million fell short of estimates and declined 3% year over year.
• The company announced a quarterly dividend of $0.23 per share, equivalent to $0.92 annually and a 3.3% yield at the article’s cited share price.

Shares of Archrock, Inc. (NYSE:AROC - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the ten analysts that are covering the firm, MarketBeat.com reports. One analyst has rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $42.12.

AROC has been the topic of several recent research reports. Weiss Ratings lowered Archrock from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday, October 28th. Wells Fargo & Company dropped their price objective on shares of Archrock from $43.00 to $40.00 and set an "overweight" rating for the company in a research note on Thursday, August 6th. JPMorgan Chase & Co. cut their price objective on shares of Archrock from $42.00 to $41.00 and set an "overweight" rating on the stock in a research report on Thursday, October 8th. Zacks Research upgraded shares of Archrock from a "strong sell" rating to a "hold" rating in a research report on Thursday. Finally, Royal Bank Of Canada increased their target price on shares of Archrock from $44.00 to $46.00 and gave the company an "outperform" rating in a research note on Monday, August 17th.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Bank of America Corp DE purchased a new stake in shares of Archrock in the 2nd quarter worth $262,070,000. BlackRock Inc. purchased a new position in shares of Archrock during the second quarter valued at $1,217,511,000. Congress Asset Management Co. increased its stake in shares of Archrock by 14.4% during the third quarter. Congress Asset Management Co. now owns 2,532,464 shares of the energy company's stock valued at $76,708,000 after buying an additional 319,256 shares during the period. Algert Global LLC raised its holdings in shares of Archrock by 85.8% in the second quarter. Algert Global LLC now owns 225,040 shares of the energy company's stock valued at $9,161,000 after acquiring an additional 103,890 shares in the last quarter. Finally, Legal & General Group Plc bought a new stake in shares of Archrock in the second quarter valued at about $17,993,000. Hedge funds and other institutional investors own 95.45% of the company's stock.

Archrock Trading Up 0.2%

Shares of NYSE AROC opened at $27.59 on Monday. Archrock has a 1-year low of $22.88 and a 1-year high of $42.23. The company has a debt-to-equity ratio of 1.47, a current ratio of 1.46 and a quick ratio of 0.91. The business's 50 day moving average is $30.64 and its two-hundred day moving average is $34.09. The stock has a market capitalization of $4.84 billion, a P/E ratio of 14.22, a PEG ratio of 1.33 and a beta of 0.96.

Archrock (NYSE:AROC - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The energy company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.04. The business had revenue of $370.81 million during the quarter, compared to analyst estimates of $385.95 million. Archrock had a return on equity of 22.33% and a net margin of 22.89%. The company's revenue for the quarter was down 3.0% on a year-over-year basis. During the same period last year, the company earned $0.42 EPS. As a group, research analysts expect that Archrock will post 1.73 EPS for the current year.

Archrock Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Investors of record on Tuesday, November 3rd will be given a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend is Tuesday, November 3rd. Archrock's dividend payout ratio is 47.42%.

About Archrock

Archrock, Inc provides natural gas compression services to companies in the oil and natural gas industry. Its equipment helps move natural gas from wells through gathering systems and pipelines, supporting production and transportation.

The company's contract operations include supplying, operating and maintaining compression equipment at customer sites. Through its aftermarket services business, Archrock provides maintenance, repair and other support for compression equipment, including units it did not originally supply.

Archrock was formed in 2015 following a separation of Exterran Holdings, with the business focused on contract compression operations.

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