This trade activity should not be overlooked: Archrock Inc. (AROC)

Archrock Inc. (NYSE: AROC) stock jumped 2.89% on Monday to $12.46 against a previous-day closing price of $12.11. With 1.11 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.88 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $12.52 whereas the lowest price it dropped to was $12.17. The 52-week range on AROC shows that it touched its highest point at $13.26 and its lowest point at $6.28 during that stretch. It currently has a 1-year price target of $15.75. With its current market cap of 1.99 billion, AROC has annualized dividend of $0.62 while the current yield stands at 4.98%. Beta for the stock currently stands at 1.74.

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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 up-trending over the past week, with a rise of 0.40%, but this was down by -1.50% over a month. Three-month performance surged to 23.86% while six-month performance rose 31.02%. The stock gained 71.15% in the past year, while it has gained 38.75% so far this year. A look at the trailing 12-month EPS for AROC yields 0.42 with Next year EPS estimates of 0.83. For the next quarter, that number is 0.19. This implies an EPS growth rate of 56.90% for this year and 28.75% 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 20.60%.

Float and Shares Shorts:

At present, 154.36 million AROC shares are outstanding with a float of 139.09 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.82 million, which was 1.80% higher than short shares on Jul 30, 2023. In addition to Mr. D. Bradley Childers as the firm’s Pres, CEO & Director, Mr. Douglas S. Aron serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 84.08% of AROC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.60% of AROC, in contrast to 29.27% held by mutual funds. Shares owned by individuals account for 17.44%. As the largest shareholder in AROC with 13.55% of the stake, BlackRock Fund Advisors holds 21,208,101 shares worth 21,208,101. A second-largest stockholder of AROC, The Vanguard Group, Inc., holds 17,145,220 shares, controlling over 10.96% of the firm’s shares. EARNEST Partners LLC is the third largest shareholder in AROC, holding 12,225,049 shares or 7.81% stake. With a 6.08% stake in AROC, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 9,509,363 shares are owned by the mutual fund manager. The Invesco SteelPath MLP Select 40 F, which owns about 5.39% of AROC stock, is the second-largest Mutual Fund holder. It holds 8,429,561 shares valued at 107.81 million. Vanguard Total Stock Market ETF holds 2.93% of the stake in AROC, owning 4,588,699 shares worth 58.69 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, AROC reported revenue of $215.83M and operating income of $36.72M. The EBITDA in the recently reported quarter was $78.37M and diluted EPS was $0.11.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AROC since 0 analysts follow the stock currently. 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 $17.00 and a low target of $14.00, the average target price over the next 12 months is $15.75. Based on these targets, AROC could surge 36.44% to reach the target high and rise by 12.36% to reach the target low. Reaching the average price target will result in a growth of 26.4% 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.

Summary of Insider Activity:

Insiders traded AROC stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 20,802 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 869,227 while 1,491,468 shares were sold.

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