Archrock, Inc. (NYSE:AROC) Announces Quarterly Dividend of $0.23

Archrock, Inc. (NYSE:AROC) declared a quarterly dividend on Thursday, July 23rd. Shareholders of record on Tuesday, August 4th will be paid a dividend of 0.23 per share by the energy company on Tuesday, August 11th. This represents a c) dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Tuesday, August 4th. This is a 4.5% increase from Archrock’s previous quarterly dividend of $0.22.

Archrock has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 3 consecutive years. Archrock has a payout ratio of 47.8% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Archrock to earn $2.29 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 38.4%.

Archrock Stock Performance

Shares of AROC opened at $38.38 on Friday. The stock has a market capitalization of $6.73 billion, a P/E ratio of 20.86, a P/E/G ratio of 1.68 and a beta of 0.84. Archrock has a 12-month low of $21.17 and a 12-month high of $42.23. The firm’s 50 day moving average is $37.17 and its 200-day moving average is $34.76. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.41 and a quick ratio of 0.91.

Archrock (NYSE:AROC) last posted its quarterly earnings data on Tuesday, May 5th. The energy company reported $0.42 EPS for the quarter, missing analysts’ consensus estimates of $0.47 by ($0.05). The firm had revenue of $373.77 million for the quarter, compared to analysts’ expectations of $378.36 million. Archrock had a net margin of 21.45% and a return on equity of 22.89%. The firm’s revenue was up 7.7% compared to the same quarter last year. Equities research analysts anticipate that Archrock will post 1.9 EPS for the current fiscal year.

Analysts Set New Price Targets

AROC has been the topic of several analyst reports. Zacks Research lowered shares of Archrock from a “strong-buy” rating to a “hold” rating in a research note on Thursday, April 16th. Raymond James Financial restated an “outperform” rating and issued a $46.00 target price on shares of Archrock in a report on Thursday, May 7th. Weiss Ratings downgraded shares of Archrock from a “buy (a-)” rating to a “buy (b+)” rating in a report on Monday, July 13th. Wells Fargo & Company boosted their price objective on Archrock from $40.00 to $43.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Finally, Mizuho lifted their price objective on Archrock from $38.00 to $40.00 and gave the stock an “outperform” rating in a report on Wednesday, June 3rd. Nine research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $41.71.

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.