Stock of the Day

May 6, 2020

Archrock (AROC)

$37.10
+$0.17 (+0.4%)
Market Cap: $6.47B

About Archrock

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. The company also sells over-the-counter parts and components; and provides operations, major and routine maintenance, overhaul, and reconfiguration services to customers who own compression equipment. It serves integrated and independent oil and natural gas processors, gatherers, and transporters. The company was formerly known as Exterran Holdings, Inc. and changed its name to Archrock, Inc. in November 2015. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas.

Today's Trend

Archrock, Inc. (NYSE: AROC) shares have been edging higher, but recent investor attention is being shaped by a mix of bullish analyst commentary, a quarterly dividend, and a cluster of insider sales.

  • Archrock has continued to attract favorable Wall Street coverage, including recent price-target increases from Citigroup and Wells Fargo, with a consensus analyst rating of “Buy” and an average target above the current share price. Archrock analyst coverage and stock analysis
  • The company recently declared a quarterly dividend of $0.22 per share, reinforcing its income appeal for shareholders. Archrock dividend announcement
  • Archrock reported first-quarter results that missed earnings and revenue estimates, even though revenue still grew year over year; this is a mixed fundamental signal rather than a clear catalyst. Archrock earnings results
  • CEO/CFO-level insider selling has been a headwind for sentiment, with CFO Doug Aron and SVP Jason Ingersoll both selling shares in recent filings. SEC filing for Doug Aron sale SEC filing for Jason Ingersoll sale

Overall, Archrock’s stock performance appears to be supported by constructive analyst sentiment and dividend income, while insider selling and the prior earnings miss are tempering enthusiasm.

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