Archrock (NYSE:AROC) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research lowered shares of Archrock (NYSE:AROC) from a hold rating to a strong sell rating in a research report released on Monday,Zacks reports.

Several other brokerages also recently issued reports on AROC. Wells Fargo & Company lowered their price objective on shares of Archrock from $43.00 to $40.00 and set an “overweight” rating on the stock in a research note on Thursday, August 6th. Stifel Nicolaus set a $41.00 target price on shares of Archrock in a research note on Thursday, May 7th. Weiss Ratings downgraded shares of Archrock from a “buy (a-)” rating to a “buy (b)” rating in a report on Tuesday, August 11th. Raymond James Financial restated an “outperform” rating and issued a $46.00 price target on shares of Archrock in a research report on Thursday, May 7th. Finally, Evercore set a $40.00 price objective on shares of Archrock in a report on Monday, August 17th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $42.29.

Archrock Price Performance

Shares of NYSE:AROC opened at $31.73 on Monday. The business has a 50 day moving average price of $35.65 and a 200 day moving average price of $35.79. Archrock has a twelve month low of $22.88 and a twelve month high of $42.23. The company has a market cap of $5.56 billion, a price-to-earnings ratio of 17.06, a PEG ratio of 1.52 and a beta of 0.86. The company has a quick ratio of 0.94, a current ratio of 1.39 and a debt-to-equity ratio of 1.51.

Archrock (NYSE:AROC) last issued its quarterly earnings results on Wednesday, August 5th. The energy company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.07). Archrock had a return on equity of 22.22% and a net margin of 21.84%.The business had revenue of $371.24 million during the quarter, compared to the consensus estimate of $393.19 million. During the same period in the prior year, the firm earned $0.39 earnings per share. The business’s quarterly revenue was down 3.1% on a year-over-year basis. Research analysts predict that Archrock will post 1.73 earnings per share for the current year.

Archrock Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 11th. Stockholders of record on Tuesday, August 4th were given a dividend of $0.23 per share. This is a boost from Archrock’s previous quarterly dividend of $0.22. This represents a $0.92 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Tuesday, August 4th. Archrock’s dividend payout ratio (DPR) is presently 49.46%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AROC. Nations Financial Group Inc. IA ADV increased its holdings in Archrock by 1.7% in the 1st quarter. Nations Financial Group Inc. IA ADV now owns 18,744 shares of the energy company’s stock valued at $652,000 after buying an additional 311 shares during the period. Financial Security Advisor Inc. lifted its holdings in shares of Archrock by 3.0% during the 4th quarter. Financial Security Advisor Inc. now owns 12,000 shares of the energy company’s stock worth $312,000 after acquiring an additional 344 shares during the period. Concurrent Investment Advisors LLC lifted its holdings in shares of Archrock by 4.2% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 8,856 shares of the energy company’s stock worth $361,000 after acquiring an additional 356 shares during the period. Crossmark Global Holdings Inc. lifted its holdings in shares of Archrock by 3.7% during the 4th quarter. Crossmark Global Holdings Inc. now owns 10,290 shares of the energy company’s stock worth $268,000 after acquiring an additional 366 shares during the period. Finally, Severin Investments LLC boosted its position in shares of Archrock by 2.0% during the 4th quarter. Severin Investments LLC now owns 20,111 shares of the energy company’s stock valued at $523,000 after acquiring an additional 400 shares in the last quarter. 95.45% of the stock is owned by institutional investors.

Archrock Company 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.