Wellington Management Group LLP Lowers Position in Archrock, Inc. $AROC

Key Points

• Wellington Management sharply reduced its Archrock stake by 93.1% in the second quarter, selling 474,692 shares and retaining 35,197 shares worth approximately $1.43 million. Institutional investors collectively own 95.45% of AROC.
• Archrock reported weaker-than-expected quarterly results, with EPS of $0.38 versus the $0.45 consensus and revenue of $371.24 million versus estimates of $393.19 million. Revenue declined 3.1% year over year.
• The company raised its quarterly dividend to $0.23 per share, equivalent to a $0.92 annualized payout and a 2.8% yield. Analysts maintain a “Moderate Buy” consensus with a $42.29 price target, despite mixed rating changes.

Wellington Management Group LLP trimmed its holdings in shares of Archrock, Inc. (NYSE:AROC - Free Report) by 93.1% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 35,197 shares of the energy company's stock after selling 474,692 shares during the quarter. Wellington Management Group LLP's holdings in Archrock were worth $1,433,000 at the end of the most recent reporting period.

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

Archrock Stock Performance

NYSE:AROC opened at $32.74 on Friday. The company has a fifty day simple moving average of $34.57 and a two-hundred day simple moving average of $35.77. The company has a market cap of $5.74 billion, a price-to-earnings ratio of 17.60, a price-to-earnings-growth ratio of 1.56 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. 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 announced 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 during the quarter, compared to analyst estimates of $393.19 million. Archrock had a net margin of 21.84% and a return on equity of 22.22%. The firm's revenue was down 3.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.39 earnings per share. As a group, equities analysts anticipate that Archrock, Inc. will post 1.73 earnings per share for the current fiscal year.

Archrock Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 11th. Shareholders of record on Tuesday, August 4th were issued a dividend of $0.23 per share. This is a positive change from Archrock's previous quarterly dividend of $0.22. The ex-dividend date was Tuesday, August 4th. This represents a $0.92 annualized dividend and a yield of 2.8%. Archrock's dividend payout ratio (DPR) is currently 49.46%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on AROC. Royal Bank Of Canada boosted their target price on Archrock from $44.00 to $46.00 and gave the company an "outperform" rating in a research report 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. Mizuho raised their target price on Archrock from $38.00 to $40.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Zacks Research downgraded Archrock from a "hold" rating to a "strong sell" rating in a research report on Monday, August 31st. Finally, Wells Fargo & Company reduced their price target on shares of Archrock from $43.00 to $40.00 and set an "overweight" rating on the stock in a research report on Thursday, August 6th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $42.29.

Archrock Profile

Archrock, Inc NYSE: AROC is a Houston-based energy infrastructure company that provides natural gas compression services in the United States. Compression is used to increase the pressure of natural gas so it can be gathered, processed, transported, stored and delivered through pipeline systems. Archrock serves customers across major U.S. natural gas production and pipeline regions.

The company primarily operates through contract compression services, supplying compression equipment and related field services under customer agreements.

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