Archrock (NYSE:AROC) Sets New 12-Month High – Should You Buy?
by Scott Moore · The Cerbat GemArchrock, Inc. (NYSE:AROC – Get Free Report)’s share price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $40.88 and last traded at $40.8690, with a volume of 430728 shares. The stock had previously closed at $38.79.
Analyst Ratings Changes
A number of brokerages have recently issued reports on AROC. Mizuho boosted their price objective on Archrock from $38.00 to $40.00 and gave the stock an “outperform” rating in a report on Wednesday, June 3rd. Citigroup boosted their target price on shares of Archrock from $40.00 to $43.00 and gave the company a “buy” rating in a research report on Wednesday, May 13th. Wall Street Zen downgraded Archrock from a “buy” rating to a “hold” rating in a research report on Sunday, March 8th. Zacks Research downgraded shares of Archrock from a “strong-buy” rating to a “hold” rating in a research note on Thursday, April 16th. Finally, Royal Bank Of Canada lifted their price target on Archrock from $32.00 to $40.00 and gave the company an “outperform” rating in a research note on Monday, March 16th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $41.14.
View Our Latest Stock Analysis on Archrock
Archrock Stock Up 1.2%
The stock has a market cap of $7.35 billion, a price-to-earnings ratio of 22.78, a PEG ratio of 1.81 and a beta of 0.87. The stock has a 50 day simple moving average of $36.82 and a 200 day simple moving average of $33.06. The company has a quick ratio of 0.91, a current ratio of 1.41 and a debt-to-equity ratio of 1.57.
Archrock (NYSE:AROC – Get Free Report) last posted its earnings results on Tuesday, May 5th. The energy company reported $0.42 earnings per share for the quarter, missing analysts’ consensus estimates of $0.47 by ($0.05). The business 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 business’s revenue was up 7.7% on a year-over-year basis. As a group, analysts expect that Archrock, Inc. will post 1.9 earnings per share for the current fiscal year.
Archrock Announces Dividend
The company also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Shareholders of record on Tuesday, May 12th were given a dividend of $0.22 per share. The ex-dividend date of this dividend was Tuesday, May 12th. This represents a $0.88 annualized dividend and a dividend yield of 2.1%. Archrock’s dividend payout ratio (DPR) is currently 47.83%.
Insider Buying and Selling
In related news, SVP Jason Ingersoll sold 33,000 shares of Archrock stock in a transaction on Monday, May 18th. The stock was sold at an average price of $38.19, for a total transaction of $1,260,270.00. Following the sale, the senior vice president directly owned 277,454 shares in the company, valued at approximately $10,595,968.26. This trade represents a 10.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Doug S. Aron sold 98,050 shares of the business’s stock in a transaction on Monday, March 30th. The stock was sold at an average price of $34.76, for a total value of $3,408,218.00. Following the completion of the transaction, the chief financial officer directly owned 484,337 shares in the company, valued at approximately $16,835,554.12. This represents a 16.84% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 256,050 shares of company stock worth $9,315,588 in the last 90 days. Company insiders own 2.90% of the company’s stock.
Institutional Investors Weigh In On Archrock
Hedge funds have recently made changes to their positions in the business. Empowered Funds LLC bought a new position in Archrock during the first quarter valued at about $214,000. Integrated Investment Consultants LLC purchased a new stake in Archrock during the first quarter worth about $250,000. Glenmede Trust Co. NA raised its position in Archrock by 2.2% in the first quarter. Glenmede Trust Co. NA now owns 43,193 shares of the energy company’s stock worth $1,503,000 after acquiring an additional 919 shares during the period. Amundi raised its position in Archrock by 44.0% in the first quarter. Amundi now owns 62,854 shares of the energy company’s stock worth $2,187,000 after acquiring an additional 19,204 shares during the period. Finally, California State Teachers Retirement System boosted its stake in Archrock by 29.4% in the first quarter. California State Teachers Retirement System now owns 202,634 shares of the energy company’s stock valued at $7,052,000 after acquiring an additional 46,024 shares during the last quarter. 95.45% of the stock is currently owned by institutional investors.
About Archrock
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.