Archrock, Inc. (NYSE:AROC) Plans Dividend Increase – $0.19 Per Share

Archrock, Inc. (NYSE:AROC) declared a quarterly dividend on Friday, January 31st,Wall Street Journal reports. Stockholders of record on Wednesday, February 12th will be paid a dividend of 0.19 per share by the energy company on Wednesday, February 19th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 2.71%. The ex-dividend date of this dividend is Wednesday, February 12th. This is an increase from Archrock’s previous quarterly dividend of $0.18.

Archrock has increased its dividend by an average of 4.9% annually over the last three years. Archrock has a payout ratio of 42.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Archrock to earn $1.37 per share next year, which means the company should continue to be able to cover its $0.70 annual dividend with an expected future payout ratio of 51.1%.

Archrock Price Performance

NYSE:AROC traded down $1.91 during mid-day trading on Friday, hitting $28.08. 2,003,180 shares of the company’s stock traded hands, compared to its average volume of 1,423,360. The company has a debt-to-equity ratio of 1.73, a quick ratio of 0.82 and a current ratio of 1.26. The firm’s 50 day simple moving average is $26.38 and its 200 day simple moving average is $22.74. Archrock has a 1 year low of $15.65 and a 1 year high of $30.44. The company has a market cap of $4.92 billion, a PE ratio of 30.85, a price-to-earnings-growth ratio of 1.75 and a beta of 1.58.

Archrock (NYSE:AROC) last posted its earnings results on Monday, November 11th. The energy company reported $0.28 earnings per share for the quarter, beating 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 during the quarter, compared to the consensus estimate of $286.19 million. During the same period last year, the firm posted $0.20 EPS. The firm’s revenue for the quarter was up 15.3% on a year-over-year basis. Sell-side analysts expect that Archrock will post 1.12 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on AROC. Royal Bank of Canada raised their target price on shares of Archrock from $26.00 to $27.00 and gave the company an “outperform” rating in a report on Thursday, November 14th. JPMorgan Chase & Co. lifted their price target on shares of Archrock from $25.00 to $27.00 and gave the stock an “overweight” rating in a report on Friday, November 29th. One investment analyst has rated the stock with a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $25.17.

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.