Archrock (NYSE:AROC) Shares Break Below Fifty Day Moving Average – Here’s Why

Archrock, Inc. (NYSE:AROC)’s stock price crossed below its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $32.70 and traded as low as $29.75. Archrock shares last traded at $30.4090, with a volume of 1,396,945 shares trading hands.

Analyst Upgrades and Downgrades

AROC has been the subject of a number of recent analyst reports. Wells Fargo & Company decreased their price objective on shares of Archrock from $43.00 to $40.00 and set an “overweight” rating for the company in a research note on Thursday, August 6th. Zacks Research downgraded shares of Archrock from a “hold” rating to a “strong sell” rating in a research note on Monday, August 31st. Royal Bank Of Canada increased their target price on Archrock from $44.00 to $46.00 and gave the company an “outperform” rating in a report on Monday, August 17th. Evercore set a $40.00 target price on Archrock in a research report on Monday, August 17th. Finally, Weiss Ratings downgraded Archrock from a “buy (a-)” rating to a “buy (b)” rating in a report on Tuesday, August 11th. Nine research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, Archrock currently has a consensus rating of “Moderate Buy” and a consensus price target of $42.29.

Archrock Stock Down 0.5%

The company has a quick ratio of 0.94, a current ratio of 1.39 and a debt-to-equity ratio of 1.51. The firm has a market capitalization of $5.31 billion, a PE ratio of 16.27, a price-to-earnings-growth ratio of 1.46 and a beta of 0.92. The business’s 50-day moving average price is $32.54 and its 200-day moving average price is $35.31.

Archrock (NYSE:AROC) last announced its quarterly earnings data on Wednesday, August 5th. The energy company reported $0.38 EPS for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.07). The company had revenue of $371.24 million for the quarter, compared to analysts’ expectations of $393.19 million. Archrock had a net margin of 21.84% and a return on equity of 22.22%. The business’s revenue for the quarter was down 3.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.39 earnings per share. As a group, equities research analysts predict that Archrock, Inc. will post 1.73 EPS for the current fiscal year.

Archrock Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 11th. Stockholders of record on Tuesday, August 4th were issued a dividend of $0.23 per share. The ex-dividend date was Tuesday, August 4th. This represents a $0.92 annualized dividend and a dividend yield of 3.0%. This is an increase from Archrock’s previous quarterly dividend of $0.22. Archrock’s dividend payout ratio is presently 49.46%.

Institutional Trading of Archrock

Several hedge funds and other institutional investors have recently modified their holdings of the company. Versant Capital Management Inc grew its stake in Archrock by 56.1% in the third quarter. Versant Capital Management Inc now owns 5,764 shares of the energy company’s stock valued at $175,000 after purchasing an additional 2,072 shares in the last quarter. Envestnet Portfolio Solutions Inc. raised its stake in shares of Archrock by 24.7% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 31,627 shares of the energy company’s stock worth $1,288,000 after purchasing an additional 6,257 shares in the last quarter. Sequoia Financial Advisors LLC purchased a new stake in shares of Archrock during the 2nd quarter worth about $234,000. Tidal Investments LLC lifted its holdings in shares of Archrock by 102.4% during the 2nd quarter. Tidal Investments LLC now owns 16,433 shares of the energy company’s stock valued at $669,000 after buying an additional 8,314 shares during the last quarter. Finally, Integrated Wealth Concepts LLC acquired a new stake in shares of Archrock during the 2nd quarter valued at about $130,000. 95.45% of the stock is currently owned by hedge funds and other institutional investors.

About Archrock

Archrock, Inc (NYSE: AROC) is a Houston-based provider of natural gas compression services and equipment. The company supports the production, gathering, processing, transportation and storage of natural gas by supplying compression infrastructure that helps maintain pressure and move gas through energy systems.

Archrock’s principal business is contract compression, in which it owns and operates a fleet of natural gas compressors and provides them to customers under service agreements.