Archrock (NYSE:AROC) Releases Quarterly Earnings Results

Archrock (NYSE:AROC) issued its quarterly earnings data 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 company had revenue of $371.24 million during the quarter, compared to the consensus estimate of $393.19 million. Archrock had a net margin of 21.45% and a return on equity of 22.89%. Archrock’s revenue for the quarter was down 3.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.39 earnings per share.

Archrock Trading Down 4.6%

Shares of Archrock stock traded down $1.64 on Wednesday, reaching $34.10. 426,757 shares of the company’s stock were exchanged, compared to its average volume of 1,726,990. The firm’s 50-day moving average is $36.84 and its two-hundred day moving average is $35.31. The company has a market capitalization of $5.98 billion, a P/E ratio of 18.53, a price-to-earnings-growth ratio of 1.54 and a beta of 0.86. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.91 and a current ratio of 1.41. Archrock has a 52 week low of $22.21 and a 52 week high of $42.23.

Archrock Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 11th. Investors of record on Tuesday, August 4th will be given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Tuesday, August 4th. This is a positive change from Archrock’s previous quarterly dividend of $0.22. Archrock’s dividend payout ratio is currently 47.83%.

Insider Buying and Selling at Archrock

In related news, CFO Doug S. Aron sold 90,000 shares of the stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $36.74, for a total transaction of $3,306,600.00. Following the transaction, the chief financial officer directly owned 394,337 shares of the company’s stock, valued at $14,487,941.38. This represents a 18.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Jason Ingersoll sold 33,000 shares of Archrock stock in a transaction on 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 trade represents a 10.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 158,000 shares of company stock worth $5,907,370. 2.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Archrock

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its position in shares of Archrock by 0.7% during the first quarter. Royal Bank of Canada now owns 95,866 shares of the energy company’s stock valued at $2,514,000 after acquiring an additional 667 shares during the last quarter. Jones Financial Companies Lllp increased its position in shares of Archrock by 217.9% during the 1st 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 last quarter. EverSource Wealth Advisors LLC raised its stake in shares of Archrock by 482.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,699 shares of the energy company’s stock worth $67,000 after purchasing an additional 2,236 shares during the period. First Trust Advisors LP boosted its holdings in shares of Archrock by 24.6% in the 2nd quarter. First Trust Advisors LP now owns 279,100 shares of the energy company’s stock worth $6,930,000 after buying an additional 55,059 shares during the last quarter. Finally, Daiwa Securities Group Inc. grew its position in Archrock by 19.8% during the second quarter. Daiwa Securities Group Inc. now owns 9,700 shares of the energy company’s stock valued at $241,000 after buying an additional 1,600 shares during the period. Hedge funds and other institutional investors own 95.45% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have issued reports on AROC. Raymond James Financial restated an “outperform” rating and set a $46.00 target price on shares of Archrock in a research report on Thursday, May 7th. Stifel Nicolaus set a $41.00 price target on Archrock in a research note on Thursday, May 7th. Zacks Research cut Archrock from a “strong-buy” rating to a “hold” rating in a report on Thursday, April 16th. Weiss Ratings upgraded Archrock from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Tuesday, July 28th. Finally, Wells Fargo & Company upped their price objective on shares of Archrock from $40.00 to $43.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $41.71.

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.