Geode Capital Management LLC Acquires 84,715 Shares of Archrock, Inc. $AROC

Key Points

• Geode Capital Management increased its Archrock stake by 2.1% in the fourth quarter, buying 84,715 shares and bringing its total holdings to 4.16 million shares worth about $108.4 million.
• Several other institutional investors also raised their positions, and hedge funds and institutions now own 95.45% of Archrock’s stock, showing heavy institutional ownership.
• Archrock recently reported quarterly EPS of $0.42, missing estimates, while revenue rose 7.7% year over year; analysts still maintain a Buy consensus with an average price target of $41.14.

Geode Capital Management LLC boosted its holdings in Archrock, Inc. (NYSE:AROC - Free Report) by 2.1% during the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 4,163,783 shares of the energy company's stock after acquiring an additional 84,715 shares during the quarter. Geode Capital Management LLC owned 2.37% of Archrock worth $108,359,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP increased its stake in Archrock by 3.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 6,722,072 shares of the energy company's stock valued at $176,858,000 after buying an additional 207,978 shares during the last quarter. American Century Companies Inc. increased its stake in shares of Archrock by 3.3% during the 3rd quarter. American Century Companies Inc. now owns 6,077,999 shares of the energy company's stock worth $159,912,000 after purchasing an additional 191,914 shares during the last quarter. Sei Investments Co. increased its stake in shares of Archrock by 3.5% during the 3rd quarter. Sei Investments Co. now owns 5,499,093 shares of the energy company's stock worth $144,681,000 after purchasing an additional 187,252 shares during the last quarter. Vaughan Nelson Investment Management L.P. purchased a new stake in shares of Archrock during the 4th quarter worth approximately $61,144,000. Finally, Millennium Management LLC increased its stake in shares of Archrock by 43.8% during the 3rd quarter. Millennium Management LLC now owns 2,009,230 shares of the energy company's stock worth $52,863,000 after purchasing an additional 611,773 shares during the last quarter. Hedge funds and other institutional investors own 95.45% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on AROC shares. Raymond James Financial reiterated an "outperform" rating and issued a $46.00 price objective on shares of Archrock in a research note on Thursday, May 7th. Wall Street Zen lowered shares of Archrock from a "buy" rating to a "hold" rating in a research report on Sunday, March 8th. Stifel Nicolaus set a $41.00 price objective on Archrock in a research note on Thursday, May 7th. Royal Bank Of Canada lifted their price objective on Archrock from $32.00 to $40.00 and gave the company an "outperform" rating in a research note on Monday, March 16th. Finally, Dawson James reissued an "outperform" rating on shares of Archrock in a research note on Wednesday, February 25th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $41.14.

Insider Transactions at Archrock

In related news, SVP Jason Ingersoll sold 33,000 shares of the business's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $38.19, for a total transaction of $1,260,270.00. Following the transaction, the senior vice president owned 277,454 shares in the company, valued at $10,595,968.26. The trade was a 10.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Doug S. Aron sold 98,050 shares of the business's stock in a transaction dated Monday, March 30th. The stock was sold at an average price of $34.76, for a total transaction of $3,408,218.00. Following the sale, the chief financial officer directly owned 484,337 shares in the company, valued at $16,835,554.12. The trade was a 16.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 327,550 shares of company stock worth $11,861,703 in the last 90 days. Corporate insiders own 2.90% of the company's stock.

Archrock Stock Performance

Archrock stock opened at $34.20 on Friday. The company has a quick ratio of 0.91, a current ratio of 1.41 and a debt-to-equity ratio of 1.57. The company has a market capitalization of $5.99 billion, a PE ratio of 18.59, a P/E/G ratio of 1.49 and a beta of 0.87. The firm has a fifty day simple moving average of $36.26 and a two-hundred day simple moving average of $31.66. Archrock, Inc. has a twelve month low of $21.17 and a twelve month high of $40.12.

Archrock (NYSE:AROC - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The energy company reported $0.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.47 by ($0.05). Archrock had a net margin of 21.45% and a return on equity of 22.89%. The firm had revenue of $373.77 million during the quarter, compared to analysts' expectations of $378.36 million. The business's revenue for the quarter was up 7.7% compared to the same quarter last year. Research analysts expect that Archrock, Inc. will post 1.95 EPS for the current year.

Archrock Announces Dividend

The company also recently disclosed 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 was Tuesday, May 12th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.6%. Archrock's payout ratio is presently 47.83%.

Archrock 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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