Archrock (NYSE:AROC) Reaches New 12-Month High – Still a Buy?

Archrock, Inc. (NYSE:AROC)’s stock price hit a new 52-week high during trading on Tuesday . The stock traded as high as $27.91 and last traded at $27.80, with a volume of 129021 shares trading hands. The stock had previously closed at $26.95.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on AROC. Evercore ISI started coverage on Archrock in a research note on Wednesday, September 25th. They issued an “outperform” rating and a $24.00 price objective for the company. JPMorgan Chase & Co. raised their price target on shares of Archrock from $25.00 to $27.00 and gave the company an “overweight” rating in a report on Friday, November 29th. Royal Bank of Canada increased their target price on shares of Archrock from $26.00 to $27.00 and gave the stock an “outperform” rating in a research report on Thursday, November 14th. Citigroup initiated coverage on Archrock in a research report on Friday, September 27th. They issued a “buy” rating and a $24.00 price target for the company. Finally, Mizuho began coverage on Archrock in a research note on Wednesday, October 2nd. They set an “outperform” rating and a $24.00 target price for the company. One investment analyst has rated the stock with a hold rating and six have issued a buy rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $25.17.

Archrock Stock Performance

The company has a current ratio of 1.26, a quick ratio of 0.82 and a debt-to-equity ratio of 1.73. The firm has a market capitalization of $5.07 billion, a price-to-earnings ratio of 31.78, a PEG ratio of 1.58 and a beta of 1.58. The stock has a fifty day moving average price of $25.16 and a 200-day moving average price of $22.08.

Archrock (NYSE:AROC) last released its quarterly earnings data on Monday, November 11th. The energy company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.01. Archrock had a return on equity of 16.24% and a net margin of 13.34%. The firm had revenue of $292.16 million during the quarter, compared to analyst estimates of $286.19 million. During the same period in the prior year, the company posted $0.20 earnings per share. The business’s revenue for the quarter was up 15.3% compared to the same quarter last year. As a group, analysts anticipate that Archrock, Inc. will post 1.12 earnings per share for the current fiscal year.

Archrock Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, November 13th. Shareholders of record on Wednesday, November 6th were given a $0.175 dividend. The ex-dividend date was Wednesday, November 6th. This is a positive change from Archrock’s previous quarterly dividend of $0.17. This represents a $0.70 dividend on an annualized basis and a yield of 2.42%. Archrock’s payout ratio is 76.92%.

Institutional Trading of Archrock

Hedge funds have recently modified their holdings of the company. Barclays PLC grew its position in Archrock by 124.2% during the 3rd quarter. Barclays PLC now owns 302,610 shares of the energy company’s stock worth $6,125,000 after acquiring an additional 167,648 shares during the last quarter. Verition Fund Management LLC bought a new stake in shares of Archrock during the third quarter worth $314,000. Algert Global LLC increased its stake in shares of Archrock by 175.7% in the second quarter. Algert Global LLC now owns 567,240 shares of the energy company’s stock valued at $11,470,000 after buying an additional 361,520 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Archrock by 94.5% in the third quarter. JPMorgan Chase & Co. now owns 422,383 shares of the energy company’s stock valued at $8,549,000 after buying an additional 205,241 shares during the last quarter. Finally, Crossmark Global Holdings Inc. bought a new position in shares of Archrock in the third quarter valued at about $200,000. Institutional investors and hedge funds own 95.45% of the company’s stock.

Archrock Company Profile

Archrock, Inc, together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services.