Archrock (NYSE:AROC) Earns Buy Rating from Analysts at StockNews.com

Posted by Doug Wharley on Mar 19th, 2023

StockNews.com initiated coverage on shares of Archrock (NYSE:AROC – Get Rating) in a research note published on Thursday morning. The brokerage issued a buy rating on the energy company’s stock.

AROC has been the topic of several other research reports. Raymond James raised their target price on shares of Archrock from $10.00 to $13.00 and gave the company an outperform rating in a research note on Friday, February 24th. Royal Bank of Canada raised their target price on shares of Archrock from $12.00 to $15.00 and gave the stock an outperform rating in a report on Thursday, February 23rd.

Archrock Stock Performance

Shares of AROC stock opened at $9.51 on Thursday. The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.99 and a current ratio of 1.56. Archrock has a one year low of $6.28 and a one year high of $11.49. The company has a 50 day moving average price of $9.90 and a 200 day moving average price of $8.56. The firm has a market capitalization of $1.49 billion, a price-to-earnings ratio of 32.79 and a beta of 1.77.

Archrock (NYSE:AROC – Get Rating) last posted its quarterly earnings data on Wednesday, February 22nd. The energy company reported $0.07 EPS for the quarter, beating analysts’ consensus estimates of $0.06 by $0.01. The firm had revenue of $218.87 million for the quarter, compared to the consensus estimate of $213.27 million. Archrock had a net margin of 5.24% and a return on equity of 5.10%. During the same period in the prior year, the firm posted $0.09 EPS. Sell-side analysts anticipate that Archrock will post 0.59 EPS for the current year.

Archrock Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 14th. Stockholders of record on Tuesday, February 7th were given a $0.15 dividend. This is a positive change from Archrock’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Monday, February 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 6.31%. Archrock’s dividend payout ratio (DPR) is currently 206.90%.

Insider Activity

In other news, CAO Donna A. Henderson sold 13,961 shares of Archrock stock in a transaction that occurred on Monday, March 6th. The shares were sold at an average price of $11.11, for a total value of $155,106.71. Following the transaction, the chief accounting officer now owns 50,039 shares of the company’s stock, valued at $555,933.29. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In other Archrock news, major shareholder Ocean Reserves Lp Old sold 557,737 shares of Archrock stock in a transaction on Monday, February 27th. The shares were sold at an average price of $10.83, for a total transaction of $6,040,291.71. Following the sale, the insider now owns 16,172,626 shares in the company, valued at $175,149,539.58. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Donna A. Henderson sold 13,961 shares of Archrock stock in a transaction on Monday, March 6th. The stock was sold at an average price of $11.11, for a total transaction of $155,106.71. Following the sale, the chief accounting officer now owns 50,039 shares in the company, valued at approximately $555,933.29. The disclosure for this sale can be found here. Insiders own 2.50% of the company’s stock.

Institutional Investors Weigh In On Archrock

A number of institutional investors have recently bought and sold shares of AROC. Invesco Ltd. boosted its stake in Archrock by 18.3% during the first quarter. Invesco Ltd. now owns 9,454,203 shares of the energy company’s stock worth $87,262,000 after buying an additional 1,462,659 shares in the last quarter. Energy Income Partners LLC boosted its stake in shares of Archrock by 192.9% in the 3rd quarter. Energy Income Partners LLC now owns 2,078,157 shares of the energy company’s stock valued at $13,342,000 after purchasing an additional 1,368,652 shares in the last quarter. Norges Bank acquired a new stake in shares of Archrock in the 4th quarter valued at $11,380,000. Vanguard Group Inc. boosted its stake in shares of Archrock by 5.9% in the 3rd quarter. Vanguard Group Inc. now owns 17,248,507 shares of the energy company’s stock valued at $110,735,000 after purchasing an additional 963,291 shares in the last quarter. Finally, State Street Corp boosted its stake in shares of Archrock by 17.8% in the 1st quarter. State Street Corp now owns 6,047,977 shares of the energy company’s stock valued at $55,823,000 after purchasing an additional 915,097 shares in the last quarter. Institutional investors and hedge funds own 82.05% of the company’s stock.

About Archrock

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Archrock, Inc engages in the provision of operations, maintenance, service and equipment for oil and natural gas production, processing, and transportation applications. It operates through the Contract Operations and Aftermarket Services. The Contract Operations segment includes the owned fleet of natural gas compression equipment that the company uses to provide operations services.