Archrock, Inc. (NYSE:AROC) Increases Dividend to $0.19 Per Share

Archrock, Inc. (NYSE:AROC) announced a quarterly dividend on Thursday, January 30th,Wall Street Journal reports. Stockholders of record on Wednesday, February 12th will be paid a dividend of 0.19 per share by the energy company on Wednesday, February 19th. This represents a $0.76 annualized dividend and a dividend yield of 2.71%. The ex-dividend date is Wednesday, February 12th. This is a boost from Archrock’s previous quarterly dividend of $0.18.

Archrock has increased its dividend payment by an average of 4.9% per year over the last three years. Archrock has a dividend payout ratio of 42.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Archrock to earn $1.37 per share next year, which means the company should continue to be able to cover its $0.70 annual dividend with an expected future payout ratio of 51.1%.

Archrock Stock Down 6.4 %

Archrock stock traded down $1.91 during midday trading on Friday, hitting $28.08. 2,003,180 shares of the company were exchanged, compared to its average volume of 1,423,404. The company has a market cap of $4.92 billion, a PE ratio of 30.85, a price-to-earnings-growth ratio of 1.75 and a beta of 1.58. Archrock has a fifty-two week low of $15.65 and a fifty-two week high of $30.44. The company’s fifty day moving average price is $26.38 and its 200-day moving average price is $22.74. The company has a debt-to-equity ratio of 1.73, a current ratio of 1.26 and a quick ratio of 0.82.

Archrock (NYSE:AROC) last announced its earnings results on Monday, November 11th. The energy company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01. Archrock had a return on equity of 16.24% and a net margin of 13.34%. The business had revenue of $292.16 million for the quarter, compared to analyst estimates of $286.19 million. During the same period in the previous year, the company earned $0.20 earnings per share. The company’s revenue for the quarter was up 15.3% compared to the same quarter last year. On average, research analysts predict that Archrock will post 1.12 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

AROC has been the subject of a number of recent analyst reports. Royal Bank of Canada increased their price objective on Archrock from $26.00 to $27.00 and gave the stock an “outperform” rating in a report on Thursday, November 14th. JPMorgan Chase & Co. lifted their price target on Archrock from $25.00 to $27.00 and gave the stock an “overweight” rating in a research note on Friday, November 29th. One investment analyst has rated the stock with a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat, Archrock currently has a consensus rating of “Moderate Buy” and an average price target of $25.17.

About Archrock

Archrock, Inc, together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services.