Bank of America Corp DE Makes New Investment in Archrock, Inc. $AROC

Key Points

• Bank of America acquired 6.44 million Archrock shares in the second quarter, valued at approximately $262.1 million and representing about 3.67% of the company. Institutional investors collectively own 95.45% of Archrock.
• Archrock’s latest quarterly results 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, equivalent to an annualized $0.92 and a 3.0% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $42.29, despite mixed recommendations.

Bank of America Corp DE acquired a new position in Archrock, Inc. (NYSE:AROC - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 6,437,484 shares of the energy company's stock, valued at approximately $262,070,000. Bank of America Corp DE owned about 3.67% of Archrock as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Freestone Grove Partners LP purchased a new position in Archrock during the 2nd quarter worth $1,647,000. Man Group plc bought a new position in shares of Archrock during the 2nd quarter worth approximately $3,515,000. Jupiter Topco LLC bought a new position in shares of Archrock during the 2nd quarter worth approximately $5,439,000. Hsbc Holdings PLC purchased a new position in shares of Archrock in the 2nd quarter worth approximately $2,122,000. Finally, EFG International AG purchased a new position in shares of Archrock in the 2nd quarter worth approximately $4,329,000. Institutional investors own 95.45% of the company's stock.

Archrock Price Performance

Shares of NYSE:AROC opened at $31.09 on Thursday. The company has a quick ratio of 0.94, a current ratio of 1.39 and a debt-to-equity ratio of 1.51. The firm has a market capitalization of $5.45 billion, a PE ratio of 16.72, a P/E/G ratio of 1.48 and a beta of 0.86. Archrock, Inc. has a twelve month low of $22.88 and a twelve month high of $42.23. The company has a 50-day moving average price of $34.14 and a two-hundred day moving average price of $35.71.

Archrock (NYSE:AROC - Get Free Report) last posted 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). The business had revenue of $371.24 million during the quarter, compared to the consensus estimate of $393.19 million. Archrock had a net margin of 21.84% and a return on equity of 22.22%. The business's revenue for the quarter was down 3.1% on a year-over-year basis. During the same period last year, the firm earned $0.39 EPS. Equities analysts forecast that Archrock, Inc. will post 1.73 EPS for the current year.

Archrock Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 11th. Shareholders 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 yield of 3.0%. The ex-dividend date of this dividend was Tuesday, August 4th. This is a positive change from Archrock's previous quarterly dividend of $0.22. Archrock's payout ratio is presently 49.46%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on AROC. Royal Bank Of Canada increased their price target on Archrock from $44.00 to $46.00 and gave the company an "outperform" rating in a research report on Monday, August 17th. Weiss Ratings cut Archrock from a "buy (a-)" rating to a "buy (b)" rating in a research report on Tuesday, August 11th. Zacks Research downgraded Archrock from a "hold" rating to a "strong sell" rating in a research note on Monday, August 31st. Evercore set a $40.00 price objective on Archrock in a research note on Monday, August 17th. Finally, Mizuho raised their target price on Archrock from $38.00 to $40.00 and gave the company an "outperform" rating in a research report on Wednesday, June 3rd. Nine research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $42.29.

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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