APA (NASDAQ:APA) Trading 3.8% Higher - Time to Buy?

Key Points

• APA shares rose 3.8% to about $43.89, above their 50-day and 200-day moving averages, though trading volume was 73% below average.
• Analyst sentiment remains mixed: 11 analysts rate APA a Buy, 16 a Hold and four a Sell, producing an overall “Hold” rating and an average price target of $43.14.
• APA slightly missed quarterly earnings and revenue estimates but declared a $0.25 quarterly dividend and authorized a buyback of up to 40 million shares, signaling management views the stock as potentially undervalued.

APA Corporation (NASDAQ:APA - Get Free Report)'s share price shot up 3.8% on Wednesday . The company traded as high as $43.83 and last traded at $43.8880. Approximately 1,801,091 shares were traded during trading, a decline of 73% from the average session volume of 6,782,713 shares. The stock had previously closed at $42.30.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Wells Fargo & Company upped their target price on APA from $49.00 to $50.00 and gave the company an "equal weight" rating in a research report on Wednesday, September 2nd. Susquehanna increased their price target on APA from $45.00 to $47.00 and gave the stock a "positive" rating in a report on Tuesday, August 11th. Barclays reduced their price objective on shares of APA from $41.00 to $40.00 and set an "equal weight" rating for the company in a research report on Monday, August 17th. 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 research report on Friday, June 26th. Finally, Roth Capital set a $39.00 price target on shares of APA in a research note on Thursday, August 6th. Eleven equities research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $43.14.

APA Stock Performance

The company has a 50-day moving average of $40.51 and a 200-day moving average of $38.23. The company has a market cap of $15.30 billion, a PE ratio of 9.24, a PEG ratio of 0.77 and a beta of 0.37. 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 quarterly earnings data on Wednesday, August 5th. The company reported $1.89 earnings per share 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 quarter last year, the business posted $0.87 earnings per share. As a group, analysts anticipate that APA Corporation will post 5.7 earnings per share for the current year.

APA Dividend Announcement

The company 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. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Thursday, October 22nd. APA's dividend payout ratio (DPR) is presently 21.14%.

APA declared that its board has authorized a stock repurchase program on Wednesday, September 16th that permits the company to buyback 40,000,000 outstanding shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On APA

A number of institutional investors have recently added to or reduced their stakes in APA. Parkside Financial Bank & Trust lifted its holdings in shares of APA by 9.8% in the 2nd quarter. Parkside Financial Bank & Trust now owns 3,206 shares of the company's stock valued at $104,000 after buying an additional 285 shares during the period. Altshuler Shaham Ltd lifted its holdings in APA by 36.7% in the first quarter. Altshuler Shaham Ltd now owns 1,229 shares of the company's stock valued at $52,000 after acquiring an additional 330 shares during the period. Rockefeller Capital Management L.P. boosted its position in APA by 0.4% in the 4th quarter. Rockefeller Capital Management L.P. now owns 106,667 shares of the company's stock worth $2,609,000 after purchasing an additional 375 shares in the last quarter. Coldstream Capital Management Inc. grew its stake in shares of APA by 1.4% during the 4th quarter. Coldstream Capital Management Inc. now owns 28,171 shares of the company's stock worth $689,000 after purchasing an additional 396 shares during the period. Finally, Waverly Advisors LLC increased its holdings in shares of APA by 4.3% during the 2nd quarter. Waverly Advisors LLC now owns 9,849 shares of the company's stock valued at $321,000 after purchasing an additional 405 shares in the last quarter. 83.01% of the stock is 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 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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