Zacks Research Downgrades USA Compression Partners (NYSE:USAC) to Strong Sell

Key Points

• Zacks Research downgraded USA Compression Partners (NYSE: USAC) from hold to strong sell, signaling a more bearish view on the stock.
• The firm also cut earnings estimates across multiple future periods, including FY2026, FY2027, and FY2028, indicating softer long-term profit expectations.
• Despite the downgrade, other analysts remain mixed: the stock still carries an average Hold rating and a consensus price target of $29.25, while shares were trading at $26.04 on Monday.

USA Compression Partners (NYSE:USAC - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,Zacks.com reports. Zacks Research also issued estimates for USA Compression Partners' Q2 2026 earnings at $0.24 EPS, Q3 2026 earnings at $0.25 EPS, Q4 2026 earnings at $0.28 EPS, FY2026 earnings at $1.04 EPS, Q1 2027 earnings at $0.31 EPS, Q2 2027 earnings at $0.29 EPS, Q3 2027 earnings at $0.32 EPS, Q4 2027 earnings at $0.31 EPS, FY2027 earnings at $1.22 EPS, Q1 2028 earnings at $0.33 EPS, Q2 2028 earnings at $0.35 EPS and FY2028 earnings at $1.46 EPS.

A number of other research analysts also recently issued reports on USAC. Royal Bank Of Canada boosted their target price on shares of USA Compression Partners from $29.00 to $30.00 and gave the company a "sector perform" rating in a research report on Friday, June 5th. Texas Capital upgraded shares of USA Compression Partners from a "hold" rating to a "strong-buy" rating in a report on Monday, March 9th. Mizuho increased their price objective on shares of USA Compression Partners from $28.00 to $29.00 and gave the stock a "neutral" rating in a research report on Friday, June 12th. Finally, Citigroup raised their target price on USA Compression Partners from $26.00 to $28.00 and gave the company a "neutral" rating in a research note on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $29.25.

USA Compression Partners Stock Up 2.1%

Shares of NYSE USAC opened at $26.04 on Monday. USA Compression Partners has a 52-week low of $21.85 and a 52-week high of $30.55. The company has a debt-to-equity ratio of 9.41, a quick ratio of 0.86 and a current ratio of 1.55. The company's 50 day moving average price is $27.48 and its 200-day moving average price is $26.67. The company has a market capitalization of $3.78 billion, a P/E ratio of 26.85 and a beta of 0.21.

USA Compression Partners (NYSE:USAC - Get Free Report) last released its earnings results on Tuesday, May 5th. The oil and gas company reported $0.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.35 by ($0.08). The firm had revenue of $331.27 million during the quarter, compared to analyst estimates of $308.35 million. USA Compression Partners had a net margin of 11.91% and a negative return on equity of 807.33%. Equities analysts forecast that USA Compression Partners will post 1.02 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. D.A. Davidson & CO. raised its position in USA Compression Partners by 1.6% in the 1st quarter. D.A. Davidson & CO. now owns 28,790 shares of the oil and gas company's stock valued at $781,000 after buying an additional 447 shares during the last quarter. Royal Bank of Canada boosted its holdings in USA Compression Partners by 0.4% during the 4th quarter. Royal Bank of Canada now owns 127,146 shares of the oil and gas company's stock worth $2,924,000 after acquiring an additional 521 shares during the last quarter. Kestra Advisory Services LLC boosted its holdings in USA Compression Partners by 1.2% during the 1st quarter. Kestra Advisory Services LLC now owns 46,340 shares of the oil and gas company's stock worth $1,257,000 after acquiring an additional 540 shares during the last quarter. Cetera Investment Advisers grew its stake in shares of USA Compression Partners by 2.4% in the 1st quarter. Cetera Investment Advisers now owns 28,636 shares of the oil and gas company's stock worth $777,000 after acquiring an additional 674 shares in the last quarter. Finally, Commonwealth Equity Services LLC grew its stake in shares of USA Compression Partners by 5.7% in the 4th quarter. Commonwealth Equity Services LLC now owns 13,482 shares of the oil and gas company's stock worth $310,000 after acquiring an additional 724 shares in the last quarter. Hedge funds and other institutional investors own 47.77% of the company's stock.

Key Headlines Impacting USA Compression Partners

Here are the key news stories impacting USA Compression Partners this week:

• Positive Sentiment: USA Compression completed its legal redomiciliation from Delaware to Texas, a corporate move that may be viewed as simplifying its structure and potentially improving governance flexibility. USA Compression Completes Legal Redomiciliation to Texas
• Neutral Sentiment: Zacks Research maintained a Hold rating on USAC while keeping its near-term earnings outlook in line with consensus for the current year, suggesting no major change to the broader investment thesis.
• Negative Sentiment: Zacks Research cut earnings estimates across multiple periods, including FY2026 to $1.04 from $1.15, FY2027 to $1.22 from $1.39, and FY2028 to $1.46 from $1.62, signaling softer long-term profit expectations. USA Compression Partners analyst estimates article
• Negative Sentiment: The firm also lowered quarterly estimates for 2026 and 2027, including Q2 2026, Q3 2026, Q4 2026, Q1 2027, Q2 2027, Q3 2027, Q4 2027, and Q1/Q2 2028, which could pressure sentiment if investors focus on slower earnings momentum.

About USA Compression Partners

USA Compression Partners NYSE: USAC is a Houston-based master limited partnership specializing in natural gas compression services for oil and gas producers. The company offers a full suite of midstream compression solutions designed to enhance production flow and optimize field operations. Its core activities include the design, engineering, fabrication, installation, operation and maintenance of natural gas compression equipment onshore across key U.S. basins.

USA Compression's product and service offerings encompass new equipment deployment, aftermarket parts and component sales, field service support, and instrumentation and control systems.

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