APA (NASDAQ:APA) Sets New 12-Month High - Should You Buy?

Key Points

• APA reached a new 52-week high of $52.52, substantially above its 50-day and 200-day moving averages of $45.38 and $37.44, respectively.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with a $44.76 price target, below the stock’s recent trading level, although Stifel Nicolaus issued a “Buy” rating with a $62 target.
• APA offers a $0.25 quarterly dividend, representing a 1.9% yield, and has authorized a buyback of up to 40 million shares; however, its latest quarterly revenue and EPS fell slightly short of analyst expectations.

APA Corporation (NASDAQ:APA - Get Free Report)'s stock price reached a new 52-week high during trading on Friday. The stock traded as high as $52.52 and last traded at $52.0770, with a volume of 410,581 shares. The stock had previously closed at $51.51.

Analyst Ratings Changes

A number of research analysts recently commented on APA shares. Scotiabank began coverage on APA in a report on Wednesday, October 14th. They issued a "sector perform" rating and a $44.00 price target on the stock. UBS Group lifted their target price on APA from $47.00 to $52.00 and gave the company a "neutral" rating in a research report on Monday, October 12th. Stifel Nicolaus started coverage on APA in a report on Wednesday, September 9th. They issued a "buy" rating and a $62.00 price target on the stock. Truist Financial raised their target price on shares of APA from $44.00 to $45.00 and gave the company a "hold" rating in a research note on Monday, October 12th. Finally, Royal Bank Of Canada boosted their price objective on shares of APA from $47.00 to $49.00 and gave the company a "sector perform" rating in a report on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, fifteen have given a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, APA has a consensus rating of "Hold" and a consensus price target of $44.76.

APA Price Performance

The stock has a market cap of $18.38 billion, a PE ratio of 11.09, a P/E/G ratio of 0.79 and a beta of 0.42. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.47. The company has a fifty day moving average of $45.38 and a 200-day moving average of $37.44.

APA (NASDAQ:APA - Get Free Report) last issued its 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). APA had a net margin of 19.48% and a return on equity of 24.84%. The company had revenue of $2.37 billion during the quarter, compared to analyst estimates of $2.46 billion. During the same quarter in the previous year, the company posted $0.87 EPS. Sell-side analysts expect that APA Corporation will post 6.46 EPS for the current fiscal year.

APA Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Thursday, October 22nd will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, October 22nd. This represents a $1.00 annualized dividend and a yield of 1.9%. APA's payout ratio is 21.14%.

APA announced that its Board of Directors has initiated a share buyback program on Wednesday, September 16th that allows the company to buy back 40,000,000 shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Share buyback programs are generally a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On APA

Hedge funds have recently modified their holdings of the company. Hollencrest Capital Management increased its holdings in APA by 520.8% during the first quarter. Hollencrest Capital Management now owns 596 shares of the company's stock worth $25,000 after buying an additional 500 shares during the last quarter. Cedar Mountain Advisors LLC bought a new position in shares of APA during the first quarter valued at $28,000. MidFirst Bank acquired a new position in shares of APA in the 2nd quarter valued at about $33,000. Compass Financial Management LLC acquired a new stake in APA in the 2nd quarter valued at $33,000. Finally, Gables Capital Management Inc. purchased a new stake in shares of APA during the 2nd quarter valued at $36,000. 83.01% of the stock is currently owned by institutional investors and hedge funds.

APA Company Profile

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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