Archrock (NYSE:AROC) to Repurchase $50.00 million in Shares

Archrock (NYSE:AROC) declared that its Board of Directors has initiated a stock buyback plan on Monday, May 5th, RTT News reports. The company plans to buyback $50.00 million in outstanding shares. This buyback authorization allows the energy company to purchase up to 1.2% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Archrock Stock Performance

NYSE:AROC opened at $23.91 on Wednesday. The company’s 50-day moving average is $24.46 and its two-hundred day moving average is $25.15. The firm has a market capitalization of $4.19 billion, a price-to-earnings ratio of 26.28, a PEG ratio of 1.60 and a beta of 1.19. The company has a debt-to-equity ratio of 1.73, a current ratio of 1.26 and a quick ratio of 0.82. Archrock has a 1-year low of $17.27 and a 1-year high of $30.44.

Archrock (NYSE:AROC) last posted its earnings results on Monday, May 5th. The energy company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.03. The firm had revenue of $347.16 million for the quarter, compared to analyst estimates of $342.98 million. Archrock had a return on equity of 16.24% and a net margin of 13.34%. Analysts forecast that Archrock will post 1.09 EPS for the current year.

Archrock Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, May 13th. Investors of record on Tuesday, May 6th will be paid a dividend of $0.19 per share. The ex-dividend date is Tuesday, May 6th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 3.18%. Archrock’s payout ratio is currently 73.08%.

Analyst Upgrades and Downgrades

Separately, Citigroup boosted their target price on shares of Archrock from $32.00 to $33.00 and gave the stock a “buy” rating in a research report on Tuesday, March 18th. One research analyst has rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, Archrock presently has a consensus rating of “Moderate Buy” and a consensus price target of $26.67.

Archrock Company Profile

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.