Archrock Inc. (NYSE: AROC) stock fell -3.92% on Friday to $8.09 against a previous-day closing price of $8.42. With 1.23 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.87 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $8.58 whereas the lowest price it dropped to was $7.98. The 52-week range on AROC shows that it touched its highest point at $10.44 and its lowest point at $6.99 during that stretch. It currently has a 1-year price target of $10.50. With its current market cap of 1.26 billion, AROC has annualized dividend of $0.58 while the current yield stands at 7.17%. Beta for the stock currently stands at 1.74.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AROC was down-trending over the past week, with a drop of -4.82%, but this was up by 2.53% over a month. Three-month performance dropped to -7.86% while six-month performance fell -5.71%. The stock lost -4.82% in the past year, while it has gained 8.16% so far this year. A look at the trailing 12-month EPS for AROC yields 0.16 with Next year EPS estimates of 0.46. For the next quarter, that number is 0.12. This implies an EPS growth rate of 138.50% for this year and 53.33% for next year. EPS is expected to decline by -12.91% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.30%.
Float and Shares Shorts:
At present, 152.69 million AROC shares are outstanding with a float of 134.22 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.68 million, which was 3.66% higher than short shares on Jun 14, 2022. In addition to Mr. D. Bradley Childers as the firm’s Pres, CEO & Director, Mr. Douglas S. Aron serves as its Sr. VP & CFO.
Through their ownership of 83.80% of AROC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.79% of AROC, in contrast to 31.19% held by mutual funds. Shares owned by individuals account for 18.02%. As the largest shareholder in AROC with 13.80% of the stake, BlackRock Fund Advisors holds 21,419,146 shares worth 21,419,146. A second-largest stockholder of AROC, The Vanguard Group, Inc., holds 15,687,630 shares, controlling over 10.11% of the firm’s shares. EARNEST Partners LLC is the third largest shareholder in AROC, holding 13,458,793 shares or 8.67% stake. With a 6.13% stake in AROC, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 9,521,619 shares are owned by the mutual fund manager. The Invesco SteelPath MLP Select 40 F, which owns about 4.75% of AROC stock, is the second-largest Mutual Fund holder. It holds 7,379,561 shares valued at 61.03 million. Vanguard Total Stock Market Index holds 2.82% of the stake in AROC, owning 4,374,286 shares worth 36.18 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AROC since 2 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AROC analysts setting a high price target of $11.00 and a low target of $10.00, the average target price over the next 12 months is $10.50. Based on these targets, AROC could surge 35.97% to reach the target high and rise by 23.61% to reach the target low. Reaching the average price target will result in a growth of 29.79% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AROC will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $0.88 being high and $0.30 being low. For AROC, this leads to a yearly average estimate of $0.59. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Archrock Inc. reported $0.11 EPS against a consensus estimate of $0.11. The surprise factor in the prior quarter was -$0.05. Based on analyst estimates, the high estimate for the next quarter is $0.27 and the low estimate is $0.12. The average estimate for the next quarter is thus $0.20.
Summary of Insider Activity:
Insiders traded AROC stock several times over the past three months with 2 Buys and 4 Sells. In these transactions, 200,000 shares were bought while 176,717 shares were sold. The number of buy transactions has increased to 26 while that of sell transactions has risen to 26 over the past year. The total number of shares bought during that period was 1,110,747 while 408,882 shares were sold.