Archrock (NYSE:AROC) Sets New 1-Year High on Analyst Upgrade

Archrock, Inc. (NYSE:AROC)’s stock price hit a new 52-week high during trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $36.45 and last traded at $36.0590, with a volume of 274493 shares traded. The stock had previously closed at $35.33.

A number of other research analysts have also recently issued reports on the stock. Raymond James Financial reissued an “outperform” rating and set a $40.00 price target on shares of Archrock in a research report on Wednesday. Stifel Nicolaus lifted their target price on shares of Archrock from $31.00 to $40.00 and gave the company a “buy” rating in a report on Thursday. Weiss Ratings restated a “buy (b)” rating on shares of Archrock in a research note on Wednesday, January 21st. Zacks Research raised Archrock from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. Finally, Dawson James reissued an “outperform” rating on shares of Archrock in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, Archrock has a consensus rating of “Buy” and an average target price of $35.86.

Institutional Investors Weigh In On Archrock

A number of hedge funds have recently modified their holdings of AROC. Invesco Ltd. raised its holdings in Archrock by 5.5% in the 4th quarter. Invesco Ltd. now owns 8,719,020 shares of the energy company’s stock worth $226,869,000 after purchasing an additional 457,569 shares during the period. Corient Private Wealth LLC raised its stake in shares of Archrock by 246.2% in the fourth quarter. Corient Private Wealth LLC now owns 104,716 shares of the energy company’s stock worth $2,725,000 after buying an additional 74,471 shares during the period. Mercer Global Advisors Inc. ADV lifted its position in shares of Archrock by 20.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 18,519 shares of the energy company’s stock valued at $482,000 after buying an additional 3,122 shares in the last quarter. Vident Advisory LLC grew its stake in shares of Archrock by 11.9% during the 4th quarter. Vident Advisory LLC now owns 9,206 shares of the energy company’s stock valued at $240,000 after acquiring an additional 980 shares during the period. Finally, First Citizens Bank & Trust Co. increased its holdings in Archrock by 5.2% in the 4th quarter. First Citizens Bank & Trust Co. now owns 26,990 shares of the energy company’s stock worth $702,000 after acquiring an additional 1,343 shares in the last quarter. Institutional investors own 95.45% of the company’s stock.

Archrock Stock Performance

The company has a current ratio of 1.54, a quick ratio of 0.99 and a debt-to-equity ratio of 1.62. The company has a market cap of $6.30 billion, a P/E ratio of 19.69, a PEG ratio of 1.47 and a beta of 0.87. The business’s 50 day simple moving average is $29.00 and its 200 day simple moving average is $26.24.

Archrock (NYSE:AROC) last announced its quarterly earnings data on Tuesday, February 24th. The energy company reported $0.69 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.29. The firm had revenue of $377.07 million during the quarter, compared to analysts’ expectations of $378.04 million. Archrock had a net margin of 21.63% and a return on equity of 23.57%. The company’s revenue for the quarter was up 15.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.34 earnings per share. Sell-side analysts predict that Archrock, Inc. will post 1.09 earnings per share for the current fiscal year.

Archrock Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, February 18th. Investors of record on Tuesday, February 10th were issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 2.4%. This is a boost from Archrock’s previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Tuesday, February 10th. Archrock’s payout ratio is 48.09%.

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.