Kayne Anderson Capital Advisors LP Takes Position in Archrock, Inc. $AROC

Key Points

• Kayne Anderson Capital Advisors acquired 964,888 Archrock shares worth approximately $39.3 million, representing about 0.55% of the company and 0.8% of its own portfolio. Institutional investors and hedge funds collectively own 95.45% of AROC.
• Analysts remain broadly positive, with nine Buy ratings and one Hold rating, an overall “Moderate Buy” consensus, and an average price target of $42.29.
• Archrock missed quarterly earnings and revenue estimates, reporting $0.38 EPS and $371.2 million in revenue, but raised its quarterly dividend to $0.23 per share, equal to a 2.9% annualized yield.

Kayne Anderson Capital Advisors LP acquired a new position in Archrock, Inc. (NYSE:AROC - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 964,888 shares of the energy company's stock, valued at approximately $39,281,000. Archrock makes up approximately 0.8% of Kayne Anderson Capital Advisors LP's investment portfolio, making the stock its 24th largest position. Kayne Anderson Capital Advisors LP owned approximately 0.55% of Archrock at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Archrock by 15,293.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 138,388 shares of the energy company's stock worth $3,601,000 after acquiring an additional 137,489 shares in the last quarter. Marietta Investment Partners LLC bought a new position in shares of Archrock in the 4th quarter valued at approximately $1,611,000. Natixis Advisors LLC lifted its holdings in Archrock by 22.4% in the 4th quarter. Natixis Advisors LLC now owns 1,685,080 shares of the energy company's stock worth $43,846,000 after purchasing an additional 308,246 shares during the last quarter. Stephens Investment Management Group LLC acquired a new stake in Archrock in the 4th quarter worth approximately $32,904,000. Finally, Hsbc Holdings PLC boosted its position in Archrock by 40.7% during the fourth quarter. Hsbc Holdings PLC now owns 127,471 shares of the energy company's stock worth $3,309,000 after purchasing an additional 36,847 shares during the period. 95.45% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

AROC has been the topic of several analyst reports. Mizuho increased their price target on Archrock from $38.00 to $40.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Weiss Ratings downgraded shares of Archrock from a "buy (a-)" rating to a "buy (b)" rating in a report on Tuesday, August 11th. Raymond James Financial reiterated an "outperform" rating and issued a $46.00 target price on shares of Archrock in a research note on Thursday, May 7th. Evercore set a $40.00 target price on shares of Archrock in a report on Monday. Finally, Royal Bank Of Canada boosted their target price on shares of Archrock from $44.00 to $46.00 and gave the stock an "outperform" rating in a research report on Monday. Nine research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Archrock has an average rating of "Moderate Buy" and an average target price of $42.29.

Archrock Stock Performance

NYSE AROC opened at $32.17 on Friday. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.39 and a quick ratio of 0.94. The firm has a market capitalization of $5.64 billion, a price-to-earnings ratio of 17.30, a P/E/G ratio of 1.49 and a beta of 0.86. The company's fifty day moving average is $36.53 and its two-hundred day moving average is $35.78. 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 posted its quarterly earnings data 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 company had revenue of $371.24 million for the quarter, compared to the consensus estimate of $393.19 million. Archrock had a return on equity of 22.22% and a net margin of 21.84%.The business's revenue for the quarter was down 3.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.39 EPS. Equities research analysts forecast that Archrock, Inc. will post 1.81 EPS for the current year.

Archrock Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 11th. Investors of record on Tuesday, August 4th were paid a dividend of $0.23 per share. This is a positive change from Archrock's previous quarterly dividend of $0.22. This represents a $0.92 annualized dividend and a yield of 2.9%. The ex-dividend date was Tuesday, August 4th. Archrock's dividend payout ratio is presently 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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