APA (NASDAQ:APA) Sets New 1-Year High - Time to Buy?

Key Points

• APA shares reached a new 52-week high of $49.53, with the stock trading above both its 50-day and 200-day moving averages. Despite several Buy ratings, the overall analyst consensus remains Hold, with a $44.38 price target.
• APA slightly missed quarterly expectations, reporting $1.89 in EPS versus $1.90 expected and revenue of $2.37 billion versus $2.46 billion forecast. Analysts anticipate full-year EPS of approximately $6.00.
• The company declared a quarterly dividend of $0.25 per share, representing a 2.0% yield, and authorized a buyback of up to 40 million shares. Institutional investors own approximately 83% of APA’s outstanding stock.

APA Corporation (NASDAQ:APA - Get Free Report) shares hit a new 52-week high during mid-day trading on Monday. The stock traded as high as $49.53 and last traded at $49.3130, with a volume of 431,269 shares. The stock had previously closed at $49.15.

Wall Street Analysts Forecast Growth

APA has been the topic of several research reports. Stifel Nicolaus began coverage on shares of APA in a research note on Wednesday, September 9th. They issued a "buy" rating and a $62.00 price target on the stock. Roth Capital set a $39.00 price objective on shares of APA in a research note on Thursday, August 6th. Jefferies Financial Group reiterated a "hold" rating and issued a $41.00 price objective on shares of APA in a report on Sunday, October 11th. KeyCorp set a $46.00 target price on shares of APA in a research note on Wednesday, August 12th. Finally, Argus upgraded APA from a "hold" rating to a "buy" rating and set a $48.00 target price on the stock in a report on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, fifteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $44.38.

APA Trading Up 0.1%

The stock has a market capitalization of $17.23 billion, a price-to-earnings ratio of 10.40, a PEG ratio of 0.82 and a beta of 0.42. The company's 50-day moving average is $43.72 and its 200-day moving average is $39.20. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.47.

APA (NASDAQ:APA - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $1.89 EPS for the quarter, missing analysts' consensus estimates of $1.90 by ($0.01). APA had a return on equity of 24.84% and a net margin of 19.48%. The firm had revenue of $2.37 billion for the quarter, compared to analysts' expectations of $2.46 billion. During the same period last year, the firm earned $0.87 earnings per share. Research analysts anticipate that APA Corporation will post 6.00 earnings per share for the current fiscal year.

APA Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Thursday, October 22nd will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Thursday, October 22nd. APA's payout ratio is presently 21.14%.

APA announced that its board has approved a stock buyback plan on Wednesday, September 16th that permits the company to buy back 40,000,000 outstanding shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Share buyback plans are generally a sign that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Hollencrest Capital Management lifted its stake in shares of APA by 520.8% in the 1st quarter. Hollencrest Capital Management now owns 596 shares of the company's stock valued at $25,000 after purchasing an additional 500 shares during the last quarter. Cedar Mountain Advisors LLC acquired a new stake in shares of APA during the 1st quarter worth about $28,000. Compass Financial Management LLC acquired a new stake in shares of APA during the 2nd quarter worth about $33,000. MidFirst Bank purchased a new stake in APA in the 2nd quarter valued at about $33,000. Finally, Global Assets Advisory LLC purchased a new stake in APA in the 1st quarter valued at about $44,000. 83.01% of the stock is currently owned by hedge funds and other institutional investors.

About APA

APA Corporation 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 hydrocarbon resources, drilling and completing wells, operating producing properties, and managing related infrastructure.

APA's principal producing areas include the Permian Basin in the United States and Egypt's Western Desert, where it operates through joint ventures with the Egyptian General Petroleum Corporation.

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