Archrock (NYSE:AROC) Stock Breaks Below 50 Day Moving Average - What's Next?

Key Points

• Archrock shares fell below their 50-day moving average, trading as low as $29.75 versus the $32.70 average, and last changed hands near $30.41.
• Analyst sentiment remains broadly positive: nine analysts rate the stock a Buy and one rates it a Sell, producing a “Moderate Buy” consensus and an average price target of $42.29.
• Archrock missed quarterly earnings and revenue estimates, while revenue declined 3.1% year over year; however, it raised its quarterly dividend to $0.23 per share, equivalent to a 3.0% yield.

Archrock, Inc. (NYSE:AROC - Get Free Report)'s stock price passed below its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $32.70 and traded as low as $29.75. Archrock shares last traded at $30.4090, with a volume of 1,396,945 shares.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the stock. Wells Fargo & Company reduced their price objective on shares of Archrock from $43.00 to $40.00 and set an "overweight" rating on the stock in a research note on Thursday, August 6th. Royal Bank Of Canada raised their target price on Archrock from $44.00 to $46.00 and gave the stock an "outperform" rating in a research report on Monday, August 17th. Evercore set a $40.00 target price on Archrock in a report on Monday, August 17th. Mizuho upped their price target on Archrock from $38.00 to $40.00 and gave the company an "outperform" rating in a research report on Wednesday, June 3rd. Finally, Weiss Ratings cut Archrock from a "buy (a-)" rating to a "buy (b)" rating in a research note on Tuesday, August 11th. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $42.29.

Archrock Price Performance

The company has a market capitalization of $5.33 billion, a price-to-earnings ratio of 16.35, a P/E/G ratio of 1.45 and a beta of 0.86. The company has a debt-to-equity ratio of 1.51, a quick ratio of 0.94 and a current ratio of 1.39. The business has a 50 day moving average price of $32.70 and a 200-day moving average price of $35.34.

Archrock (NYSE:AROC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The energy company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.07). The business had revenue of $371.24 million for the quarter, compared to the consensus estimate of $393.19 million. Archrock had a net margin of 21.84% and a return on equity of 22.22%. The firm's revenue for the quarter was down 3.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.39 EPS. Research analysts predict that Archrock, Inc. will post 1.73 EPS for the current fiscal year.

Archrock Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 11th. Stockholders of record on Tuesday, August 4th were given 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 of this dividend was Tuesday, August 4th. This represents a $0.92 annualized dividend and a dividend yield of 3.0%. Archrock's payout ratio is 49.46%.

Institutional Trading of Archrock

Hedge funds have recently modified their holdings of the stock. Valued Wealth Advisors LLC acquired a new stake in Archrock in the first quarter worth $26,000. Summit Securities Group LLC acquired a new position in Archrock during the 1st quarter worth approximately $36,000. Northwestern Mutual Wealth Management Co. bought a new position in Archrock in the second quarter worth approximately $56,000. Clearstead Advisors LLC boosted its holdings in Archrock by 106.1% in the fourth quarter. Clearstead Advisors LLC now owns 2,496 shares of the energy company's stock worth $65,000 after acquiring an additional 1,285 shares in the last quarter. Finally, Global Retirement Partners LLC boosted its holdings in Archrock by 4,612.9% in the fourth quarter. Global Retirement Partners LLC now owns 2,922 shares of the energy company's stock worth $76,000 after acquiring an additional 2,860 shares in the last quarter. Institutional investors own 95.45% of the company's stock.

About Archrock

Archrock, Inc NYSE: AROC is a Houston-based provider of natural gas compression services and equipment. The company supports the production, gathering, processing, transportation and storage of natural gas by supplying compression infrastructure that helps maintain pressure and move gas through energy systems.

Archrock's principal business is contract compression, in which it owns and operates a fleet of natural gas compressors and provides them to customers under service agreements.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.