Hsbc Holdings PLC Reduces Holdings in Archrock, Inc. $AROC

Key Points

• HSBC Holdings reduced its Archrock stake by 54.3% in the first quarter, selling 69,277 shares and retaining 58,194 shares worth approximately $2.04 million. Institutional investors collectively own 95.45% of AROC.
• Archrock reported quarterly earnings of $0.42 per share, below the $0.47 analyst consensus, while revenue rose 7.7% year over year to $373.77 million. The stock recently traded at $36.17, within a 52-week range of $21.17 to $42.23.
• The company raised its quarterly dividend from $0.22 to $0.23 per share, equivalent to a 2.5% annualized yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $41.71.

Hsbc Holdings PLC decreased its stake in shares of Archrock, Inc. (NYSE:AROC - Free Report) by 54.3% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 58,194 shares of the energy company's stock after selling 69,277 shares during the period. Hsbc Holdings PLC's holdings in Archrock were worth $2,035,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Sound Income Strategies LLC lifted its holdings in Archrock by 71.0% in the fourth quarter. Sound Income Strategies LLC now owns 971 shares of the energy company's stock worth $26,000 after buying an additional 403 shares during the period. Valued Wealth Advisors LLC bought a new position in shares of Archrock in the 1st quarter worth approximately $26,000. Garton & Associates Financial Advisors LLC purchased a new position in shares of Archrock in the 4th quarter valued at approximately $27,000. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Archrock in the 4th quarter valued at approximately $33,000. Finally, Jones Financial Companies Lllp boosted its position in shares of Archrock by 217.9% during the first 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 in the last quarter. 95.45% of the stock is owned by institutional investors.

Archrock Stock Performance

Shares of AROC opened at $36.17 on Monday. 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 business's 50 day moving average price is $37.14 and its 200-day moving average price is $34.83. Archrock, Inc. has a 52 week low of $21.17 and a 52 week high of $42.23. The stock has a market cap of $6.34 billion, a P/E ratio of 19.66, a P/E/G ratio of 1.58 and a beta of 0.84.

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

Archrock Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Tuesday, August 4th will be paid a $0.23 dividend. This is an increase from Archrock's previous quarterly dividend of $0.22. This represents a $0.92 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Tuesday, August 4th. Archrock's payout ratio is currently 47.83%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on AROC. Weiss Ratings cut Archrock from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Monday, July 13th. Wells Fargo & Company raised their price objective on Archrock from $40.00 to $43.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Zacks Research cut shares of Archrock from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 16th. Mizuho upped their target price on shares of Archrock from $38.00 to $40.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 3rd. Finally, Royal Bank Of Canada upped their target price on shares of Archrock from $41.00 to $44.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 21st. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Archrock currently has a consensus rating of "Moderate Buy" and an average target price of $41.71.

Insider Buying and Selling at Archrock

In related news, SVP Jason Ingersoll sold 33,000 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $38.19, for a total value 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 position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Doug S. Aron sold 90,000 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $36.74, for a total transaction of $3,306,600.00. Following the sale, the chief financial officer directly owned 394,337 shares in the company, valued at $14,487,941.38. This trade represents a 18.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 158,000 shares of company stock valued at $5,907,370 over the last 90 days. Corporate insiders own 2.90% of the company's stock.

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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