Bank of New York Mellon Corp Purchases New Stake in Archrock, Inc. $AROC

Key Points

• Bank of New York Mellon acquired 2.07 million Archrock shares worth approximately $84.5 million, giving it a 1.18% stake. Institutional investors and hedge funds collectively own 95.45% of AROC.
• Analysts remain broadly positive, with nine Buy ratings and one Hold rating. Archrock has a consensus “Moderate Buy” rating and an average price target of $42.29.
• Archrock reported weaker-than-expected quarterly results, with EPS of $0.38 versus the $0.45 consensus and revenue of $371.24 million versus $393.19 million expected. The company nevertheless raised its quarterly dividend to $0.23, equivalent to a 3.0% annual yield.

Bank of New York Mellon Corp bought a new stake in Archrock, Inc. (NYSE:AROC - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 2,074,737 shares of the energy company's stock, valued at approximately $84,463,000. Bank of New York Mellon Corp owned approximately 1.18% of Archrock at the end of the most recent quarter.

Several other large investors have also modified their holdings of AROC. Valued Wealth Advisors LLC acquired a new stake in shares of Archrock during the first quarter valued at $26,000. Garton & Associates Financial Advisors LLC purchased a new position in Archrock in the 4th quarter valued at about $27,000. Summit Securities Group LLC purchased a new position in Archrock in the 1st quarter valued at about $36,000. Jones Financial Companies Lllp boosted its stake in shares of Archrock by 217.9% during the 1st quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company's stock worth $35,000 after purchasing an additional 902 shares during the last quarter. Finally, Covestor Ltd boosted 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 last quarter. 95.45% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on AROC shares. Stifel Nicolaus set a $41.00 price objective on shares of Archrock in a research report on Thursday, May 7th. Evercore set a $40.00 target price on shares of Archrock in a research report on Monday, August 17th. Royal Bank Of Canada lifted their target price on shares of Archrock from $44.00 to $46.00 and gave the stock an "outperform" rating in a research note on Monday, August 17th. Weiss Ratings downgraded Archrock from a "buy (a-)" rating to a "buy (b)" rating in a report on Tuesday, August 11th. Finally, 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 report on Thursday, August 6th. Nine research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $42.29.

Archrock Stock Up 0.1%

Shares of NYSE AROC opened at $30.72 on Wednesday. The stock has a market capitalization of $5.39 billion, a PE ratio of 16.52, a P/E/G ratio of 1.42 and a beta of 0.86. 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 fifty day moving average of $36.22 and a 200-day moving average of $35.80. Archrock, Inc. has a 52-week low of $22.88 and a 52-week high of $42.23.

Archrock (NYSE:AROC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The energy company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.07). The firm had revenue of $371.24 million during the quarter, compared to analysts' expectations of $393.19 million. Archrock had a return on equity of 22.22% and a net margin of 21.84%.The company's quarterly revenue was down 3.1% compared to the same quarter last year. During the same period last year, the business posted $0.39 earnings per share. On average, analysts anticipate that Archrock, Inc. will post 1.81 EPS for the current year.

Archrock Increases Dividend

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

Archrock Company Profile

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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