Archrock (NYSE:AROC) Hits New 12-Month High – Should You Buy?

Shares of Archrock, Inc. (NYSE:AROC) reached a new 52-week high during trading on Wednesday . The stock traded as high as $26.44 and last traded at $26.44, with a volume of 224842 shares traded. The stock had previously closed at $25.69.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. JPMorgan Chase & Co. boosted their price objective on shares of Archrock from $25.00 to $27.00 and gave the company an “overweight” rating in a research report on Friday, November 29th. Royal Bank of Canada upped their price target on shares of Archrock from $26.00 to $27.00 and gave the stock an “outperform” rating in a research note on Thursday, November 14th. Mizuho assumed coverage on Archrock in a research report on Wednesday, October 2nd. They set an “outperform” rating and a $24.00 price objective for the company. Evercore ISI started coverage on Archrock in a research note on Wednesday, September 25th. They set an “outperform” rating and a $24.00 price target for the company. Finally, Citigroup started coverage on Archrock in a research note on Friday, September 27th. They issued a “buy” rating and a $24.00 price target for the company. One equities research analyst has rated the stock with a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat.com, Archrock presently has a consensus rating of “Moderate Buy” and an average target price of $25.17.

Archrock Stock Performance

The company has a market cap of $4.68 billion, a price-to-earnings ratio of 28.23 and a beta of 1.59. The company has a debt-to-equity ratio of 1.73, a current ratio of 1.26 and a quick ratio of 0.82. The firm has a fifty day simple moving average of $22.71 and a 200 day simple moving average of $20.96.

Archrock (NYSE:AROC) last announced its earnings results on Monday, November 11th. The energy company reported $0.28 EPS for the quarter, topping the consensus estimate of $0.27 by $0.01. Archrock had a net margin of 13.34% and a return on equity of 16.24%. The firm had revenue of $292.16 million for the quarter, compared to the consensus estimate of $286.19 million. During the same quarter last year, the firm posted $0.20 EPS. The business’s quarterly revenue was up 15.3% on a year-over-year basis. On average, sell-side analysts expect that Archrock, Inc. will post 1.09 earnings per share for the current fiscal year.

Archrock Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, November 13th. Stockholders of record on Wednesday, November 6th were paid a $0.175 dividend. This is an increase from Archrock’s previous quarterly dividend of $0.17. The ex-dividend date was Wednesday, November 6th. This represents a $0.70 annualized dividend and a dividend yield of 2.62%. Archrock’s dividend payout ratio (DPR) is presently 76.92%.

Institutional Trading of Archrock

A number of hedge funds have recently bought and sold shares of the stock. Algert Global LLC raised its stake in shares of Archrock by 175.7% in the 2nd 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. Crossmark Global Holdings Inc. acquired a new position in Archrock in the third quarter worth about $200,000. Quest Partners LLC lifted its stake in Archrock by 145.8% during the second quarter. Quest Partners LLC now owns 76,650 shares of the energy company’s stock worth $1,550,000 after purchasing an additional 45,466 shares during the period. Van ECK Associates Corp boosted its holdings in Archrock by 93.5% during the third quarter. Van ECK Associates Corp now owns 68,251 shares of the energy company’s stock valued at $1,383,000 after purchasing an additional 32,971 shares in the last quarter. Finally, HITE Hedge Asset Management LLC bought a new stake in shares of Archrock in the 3rd quarter valued at approximately $10,939,000. 95.45% of the stock is owned by institutional investors.

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.