Archrock (NYSE:AROC) Announces Earnings Results

Archrock (NYSE:AROC) released its earnings results on Tuesday. The energy company reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.07), Zacks reports. The business had revenue of $371.24 million for the quarter, compared to the consensus estimate of $393.19 million. Archrock had a return on equity of 22.50% and a net margin of 21.84%.The firm’s revenue for the quarter was down 3.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.39 earnings per share.

Archrock Stock Down 0.4%

Shares of NYSE AROC traded down $0.12 during mid-day trading on Thursday, reaching $33.81. 262,255 shares of the company were exchanged, compared to its average volume of 1,746,137. The firm has a 50-day moving average of $36.80 and a 200 day moving average of $35.36. Archrock has a 1 year low of $22.69 and a 1 year high of $42.23. The company has a quick ratio of 0.91, a current ratio of 1.41 and a debt-to-equity ratio of 1.57. The stock has a market cap of $5.92 billion, a price-to-earnings ratio of 18.30, a P/E/G ratio of 1.56 and a beta of 0.86.

Archrock Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 11th. Investors of record on Tuesday, August 4th will be paid a dividend of $0.23 per share. This is an increase from Archrock’s previous quarterly dividend of $0.22. The ex-dividend date is Tuesday, August 4th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 2.7%. Archrock’s dividend payout ratio (DPR) is currently 49.46%.

Insider Transactions at Archrock

In other Archrock news, SVP Jason Ingersoll sold 33,000 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $38.19, for a total transaction of $1,260,270.00. Following the completion of the sale, the senior vice president directly owned 277,454 shares of the company’s stock, valued at approximately $10,595,968.26. This represents a 10.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Doug S. Aron sold 90,000 shares of Archrock stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $36.74, for a total transaction of $3,306,600.00. Following the completion of the transaction, the chief financial officer directly owned 394,337 shares in the company, valued at approximately $14,487,941.38. The trade was a 18.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 158,000 shares of company stock valued at $5,907,370 over the last quarter. 2.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Archrock

Several hedge funds have recently modified their holdings of AROC. Garton & Associates Financial Advisors LLC purchased a new position in Archrock during the fourth quarter worth approximately $27,000. Jones Financial Companies Lllp raised its position in Archrock by 217.9% during the first quarter. Jones Financial Companies Lllp now owns 1,316 shares of the energy company’s stock worth $35,000 after acquiring an additional 902 shares during the period. Larson Financial Group LLC grew its position in shares of Archrock by 92.6% in the third quarter. Larson Financial Group LLC now owns 1,647 shares of the energy company’s stock valued at $43,000 after purchasing an additional 792 shares during the period. Northwestern Mutual Wealth Management Co. raised its position in shares of Archrock by 101.8% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,814 shares of the energy company’s stock worth $47,000 after purchasing an additional 915 shares during the last quarter. Finally, Kestra Advisory Services LLC purchased a new position in shares of Archrock in the fourth quarter valued at approximately $61,000. 95.45% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on AROC shares. Stifel Nicolaus set a $41.00 price objective on shares of Archrock in a report on Thursday, May 7th. Weiss Ratings upgraded Archrock from a “buy (b+)” rating to a “buy (a-)” rating in a report on Tuesday, July 28th. Mizuho raised 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. Raymond James Financial reiterated an “outperform” rating and issued a $46.00 target price on shares of Archrock in a report on Thursday, May 7th. Finally, Royal Bank Of Canada upped their price objective on shares of Archrock from $41.00 to $44.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $41.29.

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.