Archrock, Inc. $AROC Holdings Decreased by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC reduced its stake in Archrock, Inc. by 24.8%, selling 25,801 shares and now holding 78,066 shares valued at approximately $2.04 million.
• Archrock reported $0.39 EPS for the last quarter, exceeding analyst estimates of $0.37, with a 41.6% increase in revenue year-over-year.
• The company has initiated a $50 million share buyback program, reflecting management's belief in the stock's undervaluation.

Hsbc Holdings PLC reduced its holdings in Archrock, Inc. (NYSE:AROC - Free Report) by 24.8% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 78,066 shares of the energy company's stock after selling 25,801 shares during the quarter. Hsbc Holdings PLC's holdings in Archrock were worth $2,037,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in AROC. Farther Finance Advisors LLC increased its position in Archrock by 164.8% in the 1st quarter. Farther Finance Advisors LLC now owns 964 shares of the energy company's stock valued at $26,000 after acquiring an additional 600 shares during the period. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Archrock during the 1st quarter valued at $33,000. TCTC Holdings LLC increased its position in shares of Archrock by 119.6% during the 1st quarter. TCTC Holdings LLC now owns 1,599 shares of the energy company's stock valued at $42,000 after purchasing an additional 871 shares during the period. Bayforest Capital Ltd acquired a new position in shares of Archrock during the 1st quarter valued at $47,000. Finally, Financial Network Wealth Advisors LLC acquired a new position in shares of Archrock during the 1st quarter valued at $88,000. 95.45% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Archrock

In other news, SVP Eric W. Thode sold 10,000 shares of Archrock stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $23.54, for a total transaction of $235,400.00. Following the transaction, the senior vice president owned 224,809 shares in the company, valued at approximately $5,292,003.86. The trade was a 4.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 2.60% of the company's stock.

Archrock Price Performance

Shares of NYSE AROC traded down $0.27 during mid-day trading on Tuesday, reaching $24.49. The company had a trading volume of 183,934 shares, compared to its average volume of 1,412,413. The company has a current ratio of 1.81, a quick ratio of 1.30 and a debt-to-equity ratio of 1.86. The stock has a market cap of $4.31 billion, a PE ratio of 18.56, a P/E/G ratio of 1.28 and a beta of 1.14. The company has a 50-day moving average price of $23.84 and a two-hundred day moving average price of $24.55. Archrock, Inc. has a 1-year low of $18.38 and a 1-year high of $30.44.

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 business had revenue of $383.15 million for the quarter, compared to analysts' expectations of $366.34 million. Archrock had a return on equity of 18.74% and a net margin of 17.17%.The company's quarterly revenue was up 41.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.23 EPS. On average, equities analysts anticipate that Archrock, Inc. will post 1.09 earnings per share for the current year.

Archrock declared that its Board of Directors has authorized a share repurchase plan on Monday, May 5th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the energy company to buy up to 1.2% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its stock is undervalued.

Archrock Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 12th. Investors of record on Tuesday, August 5th were issued a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date was Tuesday, August 5th. This is a positive change from Archrock's previous quarterly dividend of $0.19. Archrock's payout ratio is presently 63.64%.

Analyst Ratings Changes

AROC has been the topic of several research analyst reports. Mizuho lifted their price target on Archrock from $31.00 to $32.00 and gave the company an "outperform" rating in a research report on Friday. Sidoti upgraded Archrock to a "hold" rating in a research report on Wednesday, May 7th. Finally, Evercore ISI lowered their price target on Archrock from $32.00 to $31.00 and set an "outperform" rating on the stock in a research report on Wednesday, August 6th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $30.00.

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.