APi Group (NYSE:APG) Sets New 12-Month High on Strong Earnings

Key Points

• 52-week high after earnings beat: Shares rallied to a new 52-week high after APi reported Q EPS of $0.32 (vs. $0.30 est.) and revenue of $1.98B (vs. $1.92B), with revenue up 15.3% year-over-year.
• Analysts raise targets: Multiple brokers (Barclays, Truist, RBC, UBS, Citi) lifted price targets into the low $50s and issued buy/overweight ratings, leaving a MarketBeat consensus of "Moderate Buy" with an average target of $48.57.
• Significant insider selling: Insiders sold about 3.68M shares (~$152.3M) in the past 90 days (including a 3M-share sale), though insiders still own 18.7% and institutional investors hold 86.62% of the stock.

Shares of APi Group Corporation (NYSE:APG - Get Free Report) hit a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $49.99 and last traded at $48.4780, with a volume of 871640 shares trading hands. The stock had previously closed at $48.66.

The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.02. APi Group had a net margin of 3.70% and a return on equity of 37.92%. The company had revenue of $1.98 billion during the quarter, compared to analyst estimates of $1.92 billion. During the same period in the previous year, the business earned $0.37 earnings per share. The firm's quarterly revenue was up 15.3% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on APG. Barclays increased their price target on shares of APi Group from $44.00 to $52.00 and gave the company an "overweight" rating in a research report on Thursday, February 26th. Truist Financial upped their price objective on shares of APi Group from $50.00 to $53.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. Royal Bank Of Canada lifted their target price on shares of APi Group from $45.00 to $53.00 and gave the stock an "outperform" rating in a research report on Thursday, February 26th. UBS Group boosted their price target on shares of APi Group from $49.00 to $54.00 and gave the stock a "buy" rating in a research note on Thursday, February 26th. Finally, Citigroup boosted their target price on APi Group from $49.00 to $52.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $48.57.

Insider Activity at APi Group

In other news, Director Ian G. H. Ashken sold 114,409 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $43.12, for a total value of $4,933,316.08. Following the completion of the transaction, the director owned 10,633,830 shares of the company's stock, valued at approximately $458,530,749.60. This represents a 1.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Martin E. Franklin sold 3,000,000 shares of the firm's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $40.88, for a total value of $122,640,000.00. Following the completion of the transaction, the director owned 21,240,426 shares of the company's stock, valued at approximately $868,308,614.88. The trade was a 12.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 3,682,000 shares of company stock worth $152,333,385 over the last 90 days. 18.70% of the stock is owned by company insiders.

Institutional Trading of APi Group

Hedge funds have recently modified their holdings of the business. AQR Capital Management LLC bought a new stake in APi Group during the first quarter worth about $650,000. Goldman Sachs Group Inc. raised its stake in APi Group by 73.6% during the first quarter. Goldman Sachs Group Inc. now owns 178,117 shares of the company's stock valued at $6,369,000 after buying an additional 75,490 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of APi Group by 547.2% during the second quarter. EverSource Wealth Advisors LLC now owns 1,275 shares of the company's stock valued at $65,000 after acquiring an additional 1,078 shares in the last quarter. First Trust Advisors LP raised its position in shares of APi Group by 166.5% in the 2nd quarter. First Trust Advisors LP now owns 173,569 shares of the company's stock worth $8,861,000 after purchasing an additional 108,447 shares during the last quarter. Finally, Cresset Asset Management LLC boosted its stake in APi Group by 5.7% in the 2nd quarter. Cresset Asset Management LLC now owns 11,305 shares of the company's stock worth $577,000 after purchasing an additional 612 shares in the last quarter. Institutional investors own 86.62% of the company's stock.

APi Group Stock Down 0.5%

The company has a market capitalization of $20.95 billion, a PE ratio of -64.01, a P/E/G ratio of 2.95 and a beta of 1.68. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.43 and a current ratio of 1.50. The company's 50-day moving average is $43.66 and its 200 day moving average is $40.82.

About APi Group

APi Group Corp. is a global specialty contractor that provides fire protection, security, mechanical insulation and energy services to commercial, industrial and institutional clients. Headquartered in New Brighton, Minnesota, the company designs, installs, inspects, tests, maintains and repairs a wide range of safety and infrastructure systems. Through its network of operating subsidiaries, APi Group delivers end-to-end solutions for new construction, facility renovations and ongoing maintenance requirements.

Its service portfolio spans life safety and industrial services—such as fire suppression systems, fire alarms and emergency lighting—and specialized offerings including technical insulation, access solutions, passive fire protection and energy efficiency upgrades.

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