Archrock, Inc. (NYSE:AROC) Receives $41.71 Average Target Price from Brokerages

Shares of Archrock, Inc. (NYSE:AROC) have earned a consensus recommendation of “Buy” from the ten analysts that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation, eight have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $41.7143.

AROC has been the topic of a number of recent analyst reports. Weiss Ratings raised Archrock from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Tuesday, July 28th. Raymond James Financial reiterated an “outperform” rating and set a $46.00 price objective on shares of Archrock in a report on Thursday, May 7th. Stifel Nicolaus set a $41.00 price target on Archrock in a report on Thursday, May 7th. Royal Bank Of Canada increased their price objective on shares of Archrock from $41.00 to $44.00 and gave the company an “outperform” rating in a research note on Tuesday, July 21st. Finally, Mizuho lifted their target price on Archrock from $38.00 to $40.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 3rd.

Archrock Stock Down 1.8%

Shares of NYSE:AROC opened at $35.10 on Friday. Archrock has a 12-month low of $21.17 and a 12-month high of $42.23. The company has a quick ratio of 0.91, a current ratio of 1.41 and a debt-to-equity ratio of 1.57. The firm has a market cap of $6.15 billion, a P/E ratio of 19.08, a P/E/G ratio of 1.57 and a beta of 0.86. The business has a fifty day simple moving average of $36.88 and a 200 day simple moving average of $35.24.

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

Archrock Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Tuesday, August 4th will be given a dividend of $0.23 per share. The ex-dividend date of this dividend is Tuesday, August 4th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 2.6%. This is a boost from Archrock’s previous quarterly dividend of $0.22. Archrock’s payout ratio is currently 47.83%.

Insider Activity

In other news, CFO Doug S. Aron sold 35,000 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $38.30, for a total value of $1,340,500.00. Following the completion of the transaction, the chief financial officer directly owned 359,337 shares of the company’s stock, valued at $13,762,607.10. This trade represents a 8.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Jason Ingersoll sold 33,000 shares of the firm’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $38.19, for a total value of $1,260,270.00. Following the completion of the transaction, the senior vice president owned 277,454 shares of the company’s stock, valued at approximately $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 ninety days, insiders have sold 158,000 shares of company stock worth $5,907,370. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Neuberger Berman Group LLC increased its stake in Archrock by 9,756.7% in the fourth quarter. Neuberger Berman Group LLC now owns 1,293,002 shares of the energy company’s stock valued at $33,644,000 after acquiring an additional 1,279,884 shares during the last quarter. Stephens Investment Management Group LLC bought a new stake in Archrock in the fourth quarter valued at approximately $32,904,000. Norges Bank bought a new stake in Archrock during the 4th quarter valued at $18,721,000. Balyasny Asset Management L.P. purchased a new stake in shares of Archrock during the second quarter worth about $16,027,000. Finally, Millennium Management LLC lifted its holdings in Archrock by 43.8% in the 3rd quarter. Millennium Management LLC now owns 2,009,230 shares of the energy company’s stock worth $52,863,000 after buying an additional 611,773 shares during the period. 95.45% of the stock is currently owned by hedge funds and other institutional investors.

Archrock Company Profile

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.