Calamos Advisors LLC Makes New Investment in Archrock, Inc. $AROC

Key Points

• Calamos Advisors LLC opened a new position in Archrock during the first quarter, buying 29,167 shares valued at about $1.015 million.
• Several other institutional investors also adjusted their Archrock holdings, and overall institutional ownership stands at 95.45% of the stock.
• Archrock saw mixed signals from insiders and analysts: executives sold shares in May, while analysts remain generally positive with an average Moderate Buy rating and a mean price target of $41.14.

Calamos Advisors LLC bought a new stake in shares of Archrock, Inc. (NYSE:AROC - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 29,167 shares of the energy company's stock, valued at approximately $1,015,000.

A number of other hedge funds have also made changes to their positions in AROC. Royal Bank of Canada boosted its stake in shares of Archrock by 0.7% in the first quarter. Royal Bank of Canada now owns 95,866 shares of the energy company's stock worth $2,514,000 after acquiring an additional 667 shares during the last quarter. Jones Financial Companies Lllp raised its stake in Archrock by 217.9% in the 1st quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company's stock valued at $35,000 after purchasing an additional 902 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in Archrock by 482.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,699 shares of the energy company's stock valued at $67,000 after purchasing an additional 2,236 shares during the last quarter. First Trust Advisors LP lifted its holdings in Archrock by 24.6% in the 2nd quarter. First Trust Advisors LP now owns 279,100 shares of the energy company's stock valued at $6,930,000 after purchasing an additional 55,059 shares in the last quarter. Finally, Daiwa Securities Group Inc. lifted its holdings in Archrock by 19.8% in the 2nd quarter. Daiwa Securities Group Inc. now owns 9,700 shares of the energy company's stock valued at $241,000 after purchasing an additional 1,600 shares in the last quarter. Institutional investors and hedge funds own 95.45% of the company's stock.

Insider Buying and Selling

In other news, SVP Jason Ingersoll sold 33,000 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $38.19, for a total transaction of $1,260,270.00. Following the completion of the transaction, the senior vice president directly owned 277,454 shares in the company, valued at $10,595,968.26. This trade represents a 10.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Doug S. Aron sold 35,000 shares of the business's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $38.30, for a total value of $1,340,500.00. Following the completion of the sale, the chief financial officer owned 359,337 shares in the company, valued at $13,762,607.10. This represents a 8.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 158,000 shares of company stock worth $5,907,370. 2.90% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on AROC. Wells Fargo & Company upped their target price on shares of Archrock from $40.00 to $43.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Citigroup raised their price target on shares of Archrock from $40.00 to $43.00 and gave the stock a "buy" rating in a research note on Wednesday, May 13th. Weiss Ratings lowered shares of Archrock from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Monday. Raymond James Financial reaffirmed an "outperform" rating and set a $46.00 price objective on shares of Archrock in a research note on Thursday, May 7th. Finally, Zacks Research cut shares of Archrock from a "strong-buy" rating to a "hold" rating in a research note on Thursday, April 16th. Nine research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $41.14.

Archrock Price Performance

Shares of AROC opened at $36.94 on Friday. Archrock, Inc. has a 1-year low of $21.17 and a 1-year high of $42.23. The stock has a market cap of $6.47 billion, a PE ratio of 20.08, a P/E/G ratio of 1.64 and a beta of 0.84. The firm has a 50-day simple moving average of $37.08 and a two-hundred day simple moving average of $34.35. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.41 and a quick ratio of 0.91.

Archrock (NYSE:AROC - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The energy company reported $0.42 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.05). Archrock had a return on equity of 22.89% and a net margin of 21.45%.The company had revenue of $373.77 million during the quarter, compared to analyst estimates of $378.36 million. The business's quarterly revenue was up 7.7% on a year-over-year basis. As a group, analysts forecast that Archrock, Inc. will post 1.9 EPS for the current year.

Archrock Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Shareholders of record on Tuesday, May 12th were given a $0.22 dividend. The ex-dividend date of this dividend was Tuesday, May 12th. This represents a $0.88 dividend on an annualized basis and a yield of 2.4%. Archrock's payout ratio is presently 47.83%.

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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