APA (NASDAQ:APA) Shares Gap Up - What's Next?

Key Points

• APA shares rose about 5%, opening at $45.15 versus a prior close of $43.81, amid favorable preliminary third-quarter updates.
• APA reported estimated realized oil prices of $87.50 per barrel in the U.S. and $98.50 internationally, alongside a $190 million pretax trading gain and repurchases of 10.5 million shares during the quarter.
• Sentiment remains mixed: Zacks upgraded APA to “Strong Buy,” but the broader analyst consensus is “Hold” with an average price target of $43.14. Full third-quarter results are scheduled for November 5, and preliminary figures may change.

APA Corporation (NASDAQ:APA - Get Free Report) gapped up before the market opened on Thursday. The stock had previously closed at $43.81, but opened at $45.15. APA shares last traded at $45.4090, with a volume of 392,828 shares trading hands.

Trending Headlines about APA

Here are the key news stories impacting APA this week:

• Positive Sentiment: APA reported estimated third-quarter realized oil prices of $87.50 per barrel in the U.S. and $98.50 internationally, plus a $190 million pretax gain on oil and gas purchases and sales. The figures suggest favorable revenue and asset-management performance. APA third-quarter supplemental information
• Positive Sentiment: The company repurchased 10.5 million shares at an average price of $42.78 during the quarter, reducing its share count and signaling management’s confidence in APA’s valuation. APA supplemental third-quarter financial information
• Positive Sentiment: Zacks upgraded APA to “Strong Buy” and raised its Q3 2026 EPS estimate to $0.68 from $0.66. It also increased its FY2026, FY2027 and FY2028 EPS forecasts, which may be supporting investor sentiment. Zacks Strong Buy upgrade
• Neutral Sentiment: APA will discuss full third-quarter results on Nov. 5. Until then, the company cautioned that the figures are preliminary and could change during the quarter-end reporting process. APA earnings call schedule
• Negative Sentiment: Zacks lowered several 2028 quarterly EPS estimates, including Q1, Q2 and Q3, while APA’s $115 million in estimated third-quarter general and administrative expense included $56 million of stock-based compensation. These factors could temper the otherwise favorable update.
• Negative Sentiment: APA’s recent median analyst price target is $40.50, below the stock’s quoted price near $43.81, indicating that some analysts see limited near-term upside despite the Strong Buy upgrade.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on APA. Benchmark increased their price objective on shares of APA from $40.00 to $46.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. Stephens upped their price target on shares of APA from $43.00 to $47.00 in a report on Wednesday, June 10th. KeyCorp set a $46.00 price target on APA in a research report on Wednesday, August 12th. Weiss Ratings upgraded APA from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, September 17th. Finally, Barclays decreased their price objective on APA from $41.00 to $40.00 and set an "equal weight" rating for the company in a report on Monday, August 17th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fifteen have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $43.14.

APA Stock Up 5.0%

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 business's fifty day simple moving average is $42.22 and its two-hundred day simple moving average is $38.93. The company has a market cap of $16.12 billion, a PE ratio of 9.71, a PEG ratio of 0.76 and a beta of 0.42.

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 return on equity of 24.84% and a net margin of 19.48%.The firm had revenue of $2.37 billion during the quarter, compared to analyst estimates of $2.46 billion. During the same quarter last year, the company posted $0.87 EPS. On average, analysts predict that APA Corporation will post 5.8 earnings per share for the current year.

APA Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Investors 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 presently 21.14%.

APA declared that its board has authorized a share repurchase program on Wednesday, September 16th that allows the company to repurchase 40,000,000 shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company's management believes its stock is undervalued.

Institutional Trading of APA

Several institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of APA during the second quarter worth about $1,173,231,000. Arrowstreet Capital Limited Partnership lifted its stake in APA by 1,726.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 4,834,502 shares of the company's stock valued at $205,176,000 after buying an additional 4,569,779 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in APA in the 2nd quarter valued at about $134,558,000. Allianz Asset Management GmbH boosted its holdings in APA by 240.5% in the 2nd quarter. Allianz Asset Management GmbH now owns 2,662,794 shares of the company's stock worth $86,727,000 after buying an additional 1,880,674 shares during the last quarter. Finally, First Trust Advisors LP boosted its holdings in APA by 55.0% in the 1st quarter. First Trust Advisors LP now owns 4,154,301 shares of the company's stock worth $176,309,000 after buying an additional 1,473,626 shares during the last quarter. 83.01% of the stock is owned by institutional investors and hedge funds.

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'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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