HITE Hedge Asset Management LLC Invests $19.60 Million in Archrock, Inc. $AROC

HITE Hedge Asset Management LLC bought a new stake in shares of Archrock, Inc. (NYSE:AROC) during the 3rd quarter, according to its most recent filing with the SEC. The firm bought 745,087 shares of the energy company’s stock, valued at approximately $19,603,000. Archrock accounts for 1.1% of HITE Hedge Asset Management LLC’s holdings, making the stock its 26th biggest position. HITE Hedge Asset Management LLC owned 0.42% of Archrock as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also recently bought and sold shares of AROC. Ameriflex Group Inc. purchased a new position in Archrock in the 3rd quarter worth approximately $27,000. Wilmington Savings Fund Society FSB raised its stake in shares of Archrock by 164.5% during the third quarter. Wilmington Savings Fund Society FSB now owns 1,082 shares of the energy company’s stock valued at $28,000 after purchasing an additional 673 shares during the period. Jones Financial Companies Lllp raised its stake in shares of Archrock by 217.9% during the first quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company’s stock valued at $35,000 after purchasing an additional 902 shares during the period. Salomon & Ludwin LLC acquired a new position in shares of Archrock during the third quarter worth $34,000. Finally, Farther Finance Advisors LLC lifted its position in shares of Archrock by 49.9% during the third quarter. Farther Finance Advisors LLC now owns 1,640 shares of the energy company’s stock worth $43,000 after purchasing an additional 546 shares in the last quarter. 95.45% of the stock is owned by institutional investors and hedge funds.

Archrock Stock Down 2.4%

Shares of NYSE:AROC opened at $35.11 on Friday. The firm has a market cap of $6.14 billion, a PE ratio of 19.18, a price-to-earnings-growth ratio of 1.49 and a beta of 0.87. The company has a fifty day simple moving average of $30.84 and a 200 day simple moving average of $26.95. The company has a current ratio of 1.54, a quick ratio of 0.99 and a debt-to-equity ratio of 1.62. Archrock, Inc. has a 12-month low of $20.12 and a 12-month high of $37.26.

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

Archrock Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, February 18th. Stockholders of record on Tuesday, February 10th were given a dividend of $0.22 per share. The ex-dividend date of this dividend was Tuesday, February 10th. This is a positive change from Archrock’s previous quarterly dividend of $0.21. This represents a $0.88 annualized dividend and a dividend yield of 2.5%. Archrock’s dividend payout ratio is 48.09%.

Insider Activity at Archrock

In related news, CAO Donna A. Henderson sold 10,413 shares of Archrock stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $36.74, for a total value of $382,573.62. Following the completion of the transaction, the chief accounting officer directly owned 27,757 shares in the company, valued at approximately $1,019,792.18. This trade represents a 27.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 2.60% of the company’s stock.

Analysts Set New Price Targets

AROC has been the subject of a number of recent analyst reports. Dawson James reaffirmed an “outperform” rating on shares of Archrock in a report on Wednesday, February 25th. Raymond James Financial reiterated an “outperform” rating and issued a $40.00 price objective on shares of Archrock in a report on Wednesday, February 25th. Weiss Ratings reissued a “buy (b)” rating on shares of Archrock in a research report on Wednesday, January 21st. Stifel Nicolaus raised their target price on Archrock from $31.00 to $40.00 and gave the company a “buy” rating in a research note on Thursday, February 26th. Finally, Citigroup lifted their target price on Archrock from $31.00 to $40.00 and gave the stock a “buy” rating in a research report on Monday, March 2nd. One investment 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 stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $36.86.

Archrock 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.