APA (NASDAQ:APA) Sets New 1-Year High - Here's Why

Key Points

• APA shares reached a new 52-week high of $47.47, trading above both their 50-day and 200-day moving averages. Despite recent target changes, analysts maintain a consensus “Hold” rating with an average price target of $43.59.
• APA reported quarterly EPS of $1.89, slightly below the $1.90 consensus estimate, while revenue of $2.37 billion also missed expectations. Analysts expect full-year EPS of approximately $5.89.
• The company declared a quarterly dividend of $0.25 per share, representing a 2.1% yield, and authorized a 40 million-share buyback program.

APA Corporation (NASDAQ:APA - Get Free Report)'s stock price hit a new 52-week high on Tuesday. The company traded as high as $47.47 and last traded at $47.2870, with a volume of 223,324 shares traded. The stock had previously closed at $46.84.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on APA shares. Mizuho upgraded shares of APA to a "strong sell" rating in a research note on Friday, July 31st. Susquehanna lifted their price target on shares of APA from $45.00 to $47.00 and gave the stock a "positive" rating in a research note on Tuesday, August 11th. Benchmark increased their price objective on shares of APA from $40.00 to $46.00 and gave the company a "buy" rating in a research report on Wednesday, August 12th. Morgan Stanley dropped their target price on shares of APA from $44.00 to $41.00 and set an "underweight" rating on the stock in a report on Friday, June 26th. Finally, The Goldman Sachs Group reaffirmed a "sell" rating and issued a $43.00 target price on shares of APA in a research report on Monday, September 7th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fifteen have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $43.59.

APA Stock Up 0.8%

The company has a market capitalization of $16.55 billion, a PE ratio of 10.02, a P/E/G ratio of 0.78 and a beta of 0.42. 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 50-day moving average of $42.77 and a two-hundred day moving average of $39.07.

APA (NASDAQ:APA - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.90 by ($0.01). The company had revenue of $2.37 billion for the quarter, compared to the consensus estimate of $2.46 billion. APA had a net margin of 19.48% and a return on equity of 24.84%. During the same period in the prior year, the firm posted $0.87 EPS. Sell-side analysts anticipate that APA Corporation will post 5.89 earnings per share 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 paid a dividend of $0.25 per share. The ex-dividend date is Thursday, October 22nd. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. APA's dividend payout ratio (DPR) is presently 21.14%.

APA declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, September 16th that permits the company to buy back 40,000,000 outstanding shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Share buyback plans are usually a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On APA

A number of hedge funds have recently modified their holdings of the company. NorthCrest Asset Manangement LLC purchased a new stake in APA in the 3rd quarter worth $307,000. Perpetual Ltd raised its holdings in APA by 25.5% during the third quarter. Perpetual Ltd now owns 11,899 shares of the company's stock valued at $494,000 after acquiring an additional 2,419 shares during the period. CX Institutional lifted its position in shares of APA by 20.2% in the third quarter. CX Institutional now owns 167,682 shares of the company's stock valued at $6,966,000 after acquiring an additional 28,175 shares in the last quarter. QRG Capital Management Inc. lifted its position in shares of APA by 14.6% in the second quarter. QRG Capital Management Inc. now owns 42,036 shares of the company's stock valued at $1,369,000 after acquiring an additional 5,344 shares in the last quarter. Finally, Envestnet Asset Management Inc. lifted its position in shares of APA by 8.5% in the second quarter. Envestnet Asset Management Inc. now owns 363,038 shares of the company's stock valued at $11,824,000 after acquiring an additional 28,474 shares in the last quarter. 83.01% of the stock is currently owned by institutional investors.

About APA

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's activities include identifying prospective resources, drilling and completing wells, and managing producing assets across multiple international markets.

APA's operations have historically been concentrated in the Permian Basin of the United States and in Egypt's Western Desert, where it participates in exploration and production activities through joint ventures.

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