Archrock (NYSE:AROC) Downgraded to “Strong Sell” Rating by Zacks Research

Archrock (NYSE:AROC) 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 reports.

A number of other brokerages have also recently commented on AROC. Citigroup increased their target price on Archrock from $40.00 to $43.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Mizuho boosted their price target on Archrock from $38.00 to $40.00 and gave the stock an “outperform” rating in a report on Wednesday, June 3rd. Royal Bank Of Canada upped their price objective on Archrock from $44.00 to $46.00 and gave the company an “outperform” rating in a research report on Monday, August 17th. Raymond James Financial reaffirmed an “outperform” rating and set a $46.00 price target on shares of Archrock in a research note on Thursday, May 7th. Finally, Stifel Nicolaus set a $41.00 price objective on Archrock in a research report on Thursday, May 7th. Nine analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $42.29.

Archrock Stock Performance

Shares of AROC opened at $31.73 on Monday. Archrock has a 12-month low of $22.88 and a 12-month high of $42.23. The stock has a market cap of $5.56 billion, a P/E ratio of 17.06, a PEG ratio of 1.52 and a beta of 0.86. The company has a current ratio of 1.39, a quick ratio of 0.94 and a debt-to-equity ratio of 1.51. The company has a 50-day moving average of $35.65 and a two-hundred day moving average of $35.79.

Archrock (NYSE:AROC) last released its quarterly 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). Archrock had a net margin of 21.84% and a return on equity of 22.22%. The business had revenue of $371.24 million during the quarter, compared to analyst estimates of $393.19 million. During the same quarter in the prior year, the company earned $0.39 earnings per share. The firm’s revenue for the quarter was down 3.1% compared to the same quarter last year. As a group, research analysts predict that Archrock will post 1.73 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in AROC. Royal Bank of Canada increased its stake in Archrock by 0.7% during the first quarter. Royal Bank of Canada now owns 95,866 shares of the energy company’s stock valued at $2,514,000 after purchasing an additional 667 shares during the last quarter. Jones Financial Companies Lllp lifted its position in shares of Archrock by 217.9% in the 1st quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company’s stock worth $35,000 after buying an additional 902 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Archrock by 482.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,699 shares of the energy company’s stock valued at $67,000 after buying an additional 2,236 shares during the period. First Trust Advisors LP boosted its holdings in shares of Archrock by 24.6% in the 2nd quarter. First Trust Advisors LP now owns 279,100 shares of the energy company’s stock valued at $6,930,000 after buying an additional 55,059 shares during the period. Finally, Daiwa Securities Group Inc. grew its position in shares of Archrock by 19.8% during the 2nd quarter. Daiwa Securities Group Inc. now owns 9,700 shares of the energy company’s stock valued at $241,000 after buying an additional 1,600 shares during the last quarter. Institutional investors and hedge funds own 95.45% of the company’s stock.

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.