Archrock (NYSE:AROC) Reaches New 1-Year High – Should You Buy?

Archrock, Inc. (NYSE:AROC)’s share price hit a new 52-week high during trading on Thursday . The company traded as high as $40.88 and last traded at $40.8690, with a volume of 430728 shares traded. The stock had previously closed at $38.79.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Wells Fargo & Company increased their price objective on Archrock from $40.00 to $43.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Dawson James reiterated an “outperform” rating on shares of Archrock in a report on Wednesday, February 25th. Mizuho increased their price target on shares of Archrock from $38.00 to $40.00 and gave the company an “outperform” rating in a research report on Wednesday, June 3rd. Weiss Ratings raised shares of Archrock from a “buy (b+)” rating to a “buy (a-)” rating in a report on Wednesday, May 6th. Finally, Wall Street Zen cut shares of Archrock from a “buy” rating to a “hold” rating in a research report on Sunday, March 8th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $41.14.

Archrock Trading Up 5.2%

The company has a current ratio of 1.41, a quick ratio of 0.91 and a debt-to-equity ratio of 1.57. The firm has a fifty day simple moving average of $36.61 and a two-hundred day simple moving average of $32.88. The firm has a market cap of $7.15 billion, a PE ratio of 22.18, a PEG ratio of 1.71 and a beta of 0.87.

Archrock (NYSE:AROC) last posted its earnings results on Tuesday, May 5th. The energy company reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.05). The business had revenue of $373.77 million for the quarter, compared to analysts’ expectations of $378.36 million. Archrock had a net margin of 21.45% and a return on equity of 22.89%. Archrock’s revenue was up 7.7% compared to the same quarter last year. Equities analysts forecast that Archrock, Inc. will post 1.9 EPS for the current year.

Archrock Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, May 19th. Investors of record on Tuesday, May 12th were issued a $0.22 dividend. The ex-dividend date was Tuesday, May 12th. This represents a $0.88 annualized dividend and a yield of 2.2%. Archrock’s payout ratio is 47.83%.

Insiders Place Their Bets

In other news, CFO Doug S. Aron sold 98,050 shares of Archrock stock in a transaction dated Monday, March 30th. The shares were sold at an average price of $34.76, for a total transaction of $3,408,218.00. Following the sale, the chief financial officer owned 484,337 shares of the company’s stock, valued at approximately $16,835,554.12. The trade was a 16.84% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Jason Ingersoll sold 33,000 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $38.19, for a total transaction of $1,260,270.00. Following the transaction, the senior vice president owned 277,454 shares in the company, valued at $10,595,968.26. This represents a 10.63% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 327,550 shares of company stock worth $11,861,703. Insiders own 2.90% of the company’s stock.

Institutional Trading of Archrock

Large investors have recently bought and sold shares of the company. Sound Income Strategies LLC grew its holdings in shares of Archrock by 71.0% during the 4th quarter. Sound Income Strategies LLC now owns 971 shares of the energy company’s stock worth $26,000 after acquiring an additional 403 shares during the period. Valued Wealth Advisors LLC purchased a new position in shares of Archrock in the 1st quarter valued at approximately $26,000. Ameriflex Group Inc. bought a new stake in shares of Archrock during the third quarter valued at approximately $27,000. Garton & Associates Financial Advisors LLC bought a new stake in shares of Archrock during the fourth quarter valued at approximately $27,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Archrock in the fourth quarter worth $33,000. 95.45% of the stock is owned by institutional investors.

About Archrock

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.