Share Repurchase Plan Initiated by APA (NASDAQ:APA)

Key Points

• APA authorized a share repurchase program for up to 40 million shares through open-market purchases, signaling that its board may view the stock as undervalued.
• APA maintained its quarterly dividend at $0.25 per share, or $1.00 annually, representing an indicated yield of approximately 2.2%.
• The stock was trading near its 52-week high, but analyst sentiment remained mixed: APA had an average “Hold” rating and a consensus price target of $42.97, below its reported $45.46 trading price.

APA (NASDAQ:APA - Get Free Report) announced that its board has authorized a share buyback program on Wednesday, September 16th, RTT News reports. The company plans to repurchase 40,000,000 outstanding shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

APA Stock Performance

NASDAQ APA traded up $0.67 during trading hours on Thursday, hitting $45.46. The company's stock had a trading volume of 5,075,097 shares, compared to its average volume of 4,985,738. The company's 50 day simple moving average is $39.94 and its two-hundred day simple moving average is $37.97. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.95 and a quick ratio of 0.95. The company has a market cap of $15.93 billion, a P/E ratio of 9.61, a price-to-earnings-growth ratio of 0.79 and a beta of 0.37. APA has a 12 month low of $21.63 and a 12 month high of $47.44.

APA (NASDAQ:APA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $1.89 earnings per share for the quarter, missing analysts' consensus estimates of $1.90 by ($0.01). APA had a net margin of 19.48% and a return on equity of 24.84%. The company had revenue of $2.37 billion for the quarter, compared to the consensus estimate of $2.46 billion. During the same quarter last year, the company earned $0.87 EPS. As a group, sell-side analysts expect that APA will post 5.7 EPS for the current fiscal year.

APA Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Thursday, October 22nd will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, October 22nd. This represents a $1.00 dividend on an annualized basis and a yield of 2.2%. APA's dividend payout ratio is currently 21.14%.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on APA shares. Stifel Nicolaus began coverage on shares of APA in a research report on Wednesday, September 9th. They issued a "buy" rating and a $62.00 price objective for the company. Sanford C. Bernstein raised their price target on APA from $37.00 to $40.00 and gave the stock a "market perform" rating in a report on Wednesday, May 20th. UBS Group upped their target price on shares of APA from $41.00 to $47.00 and gave the stock a "neutral" rating in a report on Monday. Stephens boosted their price objective on APA from $43.00 to $47.00 in a report on Wednesday, June 10th. Finally, KeyCorp set a $46.00 price objective on APA in a report on Wednesday, August 12th. Ten analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $42.97.

More APA News

Here are the key news stories impacting APA this week:

• Positive Sentiment: APA maintained its quarterly dividend at $0.25 per share, equivalent to an annualized $1.00 and an indicated yield of approximately 2.2%. The dividend is payable November 23 to shareholders of record October 22. APA Keeps Quarterly Dividend at $0.25 a Share; Approves Additional Buyback Authorization
• Positive Sentiment: Technical analysts said APA may have broken above longstanding resistance near $45, potentially signaling that selling pressure is easing and a new uptrend is developing. The stock also recently reached a new 52-week high, reinforcing the positive momentum narrative. Stock of the Day: Did APA Corporation Break Major Resistance?
• Positive Sentiment: Zacks highlighted APA as a potentially strong growth stock, which may attract growth, value and momentum-oriented investors. Here's Why APA Is a Strong Growth Stock
• Neutral Sentiment: Brokers issued updated forecasts for APA’s fourth-quarter earnings, but the available report does not provide enough detail to determine whether the revisions are favorable or unfavorable. Brokers Issue Forecasts for APA's Q4 Earnings
• Negative Sentiment: APA recently underperformed the broader market, declining 5.53% in the prior session. That weakness may reflect profit-taking or broader energy-sector pressure and remains a near-term risk despite the subsequent recovery. Here's Why APA Fell More Than the Broader Market

APA Company Profile

APA Corporation NASDAQ: APA is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids. The company operates through subsidiaries and manages upstream assets spanning exploration, drilling, production and related field-development activities.

APA's principal producing operations are in the Permian Basin of the United States and in Egypt. The company has also pursued offshore exploration opportunities in Suriname, where it has participated in drilling and appraisal activities in the country's offshore blocks.

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