Archrock (NYSE:AROC) Shares Gap Down Following Weak Earnings

Archrock, Inc. (NYSE:AROC) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $39.83, but opened at $36.75. Archrock shares last traded at $38.5120, with a volume of 529,478 shares.

The energy company reported $0.42 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.05). The business had revenue of $373.77 million during the quarter, compared to analyst estimates of $378.36 million. Archrock had a return on equity of 23.19% and a net margin of 21.45%.The firm’s revenue was up 7.7% compared to the same quarter last year.

Archrock Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Tuesday, May 12th will be given a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, May 12th. Archrock’s dividend payout ratio (DPR) is 47.83%.

Key Archrock News

Here are the key news stories impacting Archrock this week:

• Positive Sentiment: Wells Fargo raised its price target on Archrock to $43 from $40 and kept an overweight rating, implying meaningful upside from current levels.
• Positive Sentiment: Sidoti lifted several forward earnings estimates for Archrock, including Q1 2027, Q2 2027, Q3 2027, and Q4 2027, signaling confidence in the company’s longer-term earnings trajectory.
• Positive Sentiment: Coverage pieces highlighting Archrock as a bullish energy name may be reinforcing investor optimism around the stock. Analysts Are Bullish on These Energy Stocks: Devon Energy (DVN), Archrock (AROC)
• Neutral Sentiment: Investors are also watching Archrock ahead of its ex-dividend date, which can support short-term interest but does not change the company’s underlying fundamentals. Be Sure To Check Out Archrock, Inc. (NYSE:AROC) Before It Goes Ex-Dividend
• Neutral Sentiment: Archrock’s Q1 earnings call and transcript drew attention to management’s growth and capital discipline, but the call also followed a quarter where results came in below expectations. Archrock Earnings Call Highlights Strong Growth, Discipline
• Negative Sentiment: Archrock’s Q1 2026 earnings and revenue missed estimates, with higher SG&A expenses offsetting strong contract operations and rising compression demand. Archrock Q1 Earnings & Revenues Miss Estimates on Higher SG&A Expenses
• Negative Sentiment: Sidoti trimmed its Q2 2026 EPS estimate slightly, which suggests near-term margin pressure may still be a concern despite the more optimistic longer-term revisions.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on AROC. Weiss Ratings upgraded Archrock from a “buy (b+)” rating to a “buy (a-)” rating in a report on Wednesday. Royal Bank Of Canada increased their price objective on Archrock from $32.00 to $40.00 and gave the stock an “outperform” rating in a report on Monday, March 16th. Citigroup increased their price objective on Archrock from $31.00 to $40.00 and gave the stock a “buy” rating in a report on Monday, March 2nd. Dawson James reiterated an “outperform” rating on shares of Archrock in a report on Wednesday, February 25th. Finally, Zacks Research lowered Archrock from a “strong-buy” rating to a “hold” rating in a report on Thursday, April 16th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, Archrock currently has an average rating of “Buy” and a consensus target price of $40.43.

Insider Buying and Selling at Archrock

In related news, CAO Donna A. Henderson sold 10,413 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $36.74, for a total transaction of $382,573.62. Following the completion of the sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Doug S. Aron sold 98,050 shares of the stock in a transaction on Monday, March 30th. The stock was sold at an average price of $34.76, for a total value of $3,408,218.00. Following the sale, the chief financial officer owned 484,337 shares of the company’s stock, valued at approximately $16,835,554.12. This represents a 16.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 179,963 shares of company stock valued at $6,336,907. 2.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Archrock

Several institutional investors have recently bought and sold shares of the stock. Invesco Ltd. raised its holdings in Archrock by 5.5% during the fourth quarter. Invesco Ltd. now owns 8,719,020 shares of the energy company’s stock valued at $226,869,000 after buying an additional 457,569 shares in the last quarter. State Street Corp raised its holdings in Archrock by 2.2% during the fourth quarter. State Street Corp now owns 7,018,889 shares of the energy company’s stock valued at $182,631,000 after buying an additional 152,312 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Archrock by 1.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 6,833,290 shares of the energy company’s stock valued at $177,805,000 after buying an additional 111,218 shares in the last quarter. American Century Companies Inc. lifted its stake in shares of Archrock by 3.3% in the third quarter. American Century Companies Inc. now owns 6,077,999 shares of the energy company’s stock worth $159,912,000 after buying an additional 191,914 shares during the last quarter. Finally, Sei Investments Co. lifted its stake in shares of Archrock by 3.5% in the third quarter. Sei Investments Co. now owns 5,499,093 shares of the energy company’s stock worth $144,681,000 after buying an additional 187,252 shares during the last quarter. 95.45% of the stock is currently owned by institutional investors.

Archrock Price Performance

The stock’s 50 day moving average price is $36.17 and its two-hundred day moving average price is $30.05. The company has a debt-to-equity ratio of 1.62, a current ratio of 1.54 and a quick ratio of 0.99. The firm has a market capitalization of $6.47 billion, a price-to-earnings ratio of 20.06, a PEG ratio of 1.66 and a beta of 0.94.

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.