American Century Companies Inc. has significantly increased its investment in APA Corporation, raising its stake by 18.0% during the second quarter of 2023. According to Holdings Channel, the firm now holds 865,193 shares of APA, having acquired an additional 132,155 shares during this period. The total value of American Century’s holdings in APA is approximately $15.8 million as of the end of June.
Several other institutional investors have also adjusted their positions in APA. For instance, Stevens Capital Management LP entered a new position worth around $559,000, while Franklin Resources Inc. increased its stake by 38.4%, bringing its total holdings to 680,934 shares valued at $12.45 million. Legal & General Group Plc expanded its investment by 16.3%, now owning 791,007 shares worth $14.47 million, and MAI Capital Management boosted its holdings by an impressive 76.5%, acquiring a total of 2,134 shares valued at $39,000. Additionally, Neo Ivy Capital Management purchased a new position worth approximately $2.67 million. Overall, institutional investors control about 83.01% of APA’s stock.
Analyst Ratings and Price Targets
APA Corporation has attracted attention from various analysts, resulting in multiple adjustments to price targets. Stephens raised its price target from $22.00 to $23.00 while maintaining an “equal weight” rating. In a report dated November 6, 2023, Royal Bank of Canada elevated its target price from $24.00 to $25.00, also assigning a “sector perform” rating. Other analysts, including Piper Sandler and Citigroup, increased their targets to $23.00 and $25.00, respectively, both giving a “neutral” rating. JPMorgan Chase & Co. set its new target at $28.00 on November 11, 2023.
The consensus among analysts indicates that APA has a mix of ratings, with five giving a “Buy” rating, sixteen issuing a “Hold” rating, and three recommending a “Sell.” The current consensus price target stands at approximately $25.90.
Financial Performance and Dividends
On November 5, 2023, APA Corporation announced its earnings, reporting an earnings per share (EPS) of $0.93, surpassing the consensus estimate of $0.74 by $0.19. The company achieved a revenue of $2.12 billion, exceeding the expected $2.06 billion, although this represented a 16.4% decline compared to the same quarter last year. APA’s net margin stood at 15.49%, and its return on equity was 19.86%.
Additionally, APA recently declared a quarterly dividend of $0.25 per share, which was paid on November 21, 2023. This dividend yields approximately 3.9%, with the payout ratio currently at 24.04%.
As of November 15, 2023, APA’s stock opened at $25.45. Over the past year, the stock has fluctuated between a low of $13.58 and a high of $25.83. The company maintains a market capitalization of $9.03 billion and exhibits a price-to-earnings (P/E) ratio of 6.12.
Founded as an independent energy company, APA Corporation is actively involved in the exploration and production of natural gas and crude oil across the United States, Egypt, and the North Sea, with ongoing activities in Suriname and interests in projects located in Uruguay and beyond.
