Insider Buying: Archrock (NYSE:AROC) Director Purchases 5,000 Shares of Stock

Key Points

• Director Jason Rebrook purchased 5,000 shares of Archrock stock at an average price of $23.94, increasing his total ownership in the company to approximately $1.9 million.
• Archrock's stock price rose by 4.6%, reaching $25.60, following a strong quarterly earnings report that surpassed analysts' estimates.
• The company announced a dividend increase from $0.19 to $0.21 per share, reflecting a positive outlook with a 3.3% annualized yield.

Archrock, Inc. (NYSE:AROC - Get Free Report) Director Jason Rebrook acquired 5,000 shares of Archrock stock in a transaction dated Monday, September 22nd. The stock was purchased at an average price of $23.94 per share, for a total transaction of $119,700.00. Following the completion of the acquisition, the director directly owned 79,511 shares in the company, valued at approximately $1,903,493.34. This represents a 6.71% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

Archrock Stock Up 4.6%

Shares of AROC traded up $1.12 during midday trading on Tuesday, reaching $25.60. The stock had a trading volume of 875,564 shares, compared to its average volume of 1,442,008. Archrock, Inc. has a 1-year low of $19.73 and a 1-year high of $30.44. The company's fifty day simple moving average is $23.90 and its two-hundred day simple moving average is $24.37. The company has a market cap of $4.50 billion, a price-to-earnings ratio of 19.41, a PEG ratio of 1.24 and a beta of 1.14. The company has a debt-to-equity ratio of 1.86, a current ratio of 1.81 and a quick ratio of 1.30.

Archrock (NYSE:AROC - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The energy company reported $0.39 earnings per share for the quarter, beating analysts' consensus estimates of $0.37 by $0.02. Archrock had a net margin of 17.17% and a return on equity of 18.74%. The business had revenue of $383.15 million for the quarter, compared to analyst estimates of $366.34 million. During the same period last year, the business earned $0.23 EPS. The company's revenue was up 41.6% on a year-over-year basis. Equities research analysts expect that Archrock, Inc. will post 1.09 earnings per share for the current year.

Archrock Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 12th. Investors of record on Tuesday, August 5th were given a $0.21 dividend. This is a positive change from Archrock's previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Tuesday, August 5th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 3.3%. Archrock's payout ratio is 63.64%.

Institutional Trading of Archrock

Several hedge funds and other institutional investors have recently made changes to their positions in AROC. Nuveen LLC purchased a new stake in shares of Archrock in the first quarter valued at about $43,092,000. Driehaus Capital Management LLC acquired a new stake in shares of Archrock in the first quarter valued at about $25,374,000. Balyasny Asset Management L.P. acquired a new stake in shares of Archrock in the second quarter valued at about $16,027,000. Franklin Resources Inc. lifted its stake in shares of Archrock by 78.7% in the second quarter. Franklin Resources Inc. now owns 1,237,956 shares of the energy company's stock valued at $30,738,000 after purchasing an additional 545,336 shares during the period. Finally, American Century Companies Inc. lifted its stake in shares of Archrock by 9.2% in the second quarter. American Century Companies Inc. now owns 5,886,085 shares of the energy company's stock valued at $146,152,000 after purchasing an additional 497,121 shares during the period. Hedge funds and other institutional investors own 95.45% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on AROC. Evercore ISI dropped their target price on shares of Archrock from $32.00 to $31.00 and set an "outperform" rating on the stock in a research report on Wednesday, August 6th. Mizuho increased their target price on shares of Archrock from $31.00 to $32.00 and gave the company an "outperform" rating in a research report on Friday, August 29th. Finally, Wells Fargo & Company began coverage on shares of Archrock in a research report on Wednesday, September 3rd. They issued an "overweight" rating and a $30.00 target price on the stock. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, Archrock has a consensus rating of "Moderate Buy" and an average target price of $30.00.

About Archrock

Archrock, Inc, together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services.

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