Zacks Investment Research Upgrades Apache (APA) to “Buy”

Zacks Investment Research upgraded shares of Apache (NYSE:APA) from a hold rating to a buy rating in a research note issued to investors on Monday, Zacks.com reports. Zacks Investment Research currently has $34.00 price objective on the energy company’s stock.

According to Zacks, “Apache’s large geographically diversified reserve base and high-quality drilling inventory bode well. The company’s increased focus on the Permian basin- known for its high internal rates of return and low costs is the real driver. The exit from Canadian operations has freed up substantial capital for further expansion in the Permian basin, especially Apache’s Alpine High play. Estimated to hold massive oil and natural gas reserves, Alpine High discovery is expected to be a game-changer for Apache. After aligning its spending plans with the low-price environment over the past few years, Apache has now raised its capital budget to exploit growth opportunities. In fact, it also inked a deal to advance the midstream infrastructural development in the Alpine High region, which will enable it to remain on the growth trajectory. Hence, Apache is viewed as an attractive pick as of now.”

Several other research analysts have also issued reports on APA. Citigroup raised their price target on shares of Apache from $31.00 to $35.00 and gave the stock a neutral rating in a report on Wednesday, March 6th. Credit Suisse Group raised their price target on shares of Apache from $36.00 to $37.00 and gave the stock a neutral rating in a report on Thursday, February 28th. ValuEngine upgraded shares of Apache from a strong sell rating to a sell rating in a report on Wednesday, January 30th. Raymond James set a $44.00 price target on shares of Apache and gave the stock a buy rating in a report on Wednesday, January 23rd. Finally, Morgan Stanley set a $27.00 price target on shares of Apache and gave the stock a sell rating in a report on Tuesday, January 29th. Five equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and seven have given a buy rating to the company. Apache currently has a consensus rating of Hold and a consensus target price of $41.55.

Apache stock opened at $29.93 on Monday. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.05 and a quick ratio of 0.87. Apache has a 52-week low of $24.56 and a 52-week high of $50.03. The company has a market cap of $11.48 billion, a price-to-earnings ratio of 16.91, a PEG ratio of 4.62 and a beta of 1.72.

Apache (NYSE:APA) last released its quarterly earnings results on Wednesday, May 1st. The energy company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.01. Apache had a negative net margin of 2.08% and a positive return on equity of 6.71%. The firm had revenue of $1.64 billion during the quarter, compared to analyst estimates of $1.63 billion. During the same quarter last year, the business earned $0.32 EPS. The company’s revenue was down 6.4% compared to the same quarter last year. Analysts forecast that Apache will post 1.08 earnings per share for the current year.

In related news, Director John E. Lowe acquired 5,000 shares of the stock in a transaction dated Tuesday, May 7th. The stock was bought at an average price of $30.25 per share, for a total transaction of $151,250.00. Following the purchase, the director now directly owns 25,000 shares of the company’s stock, valued at approximately $756,250. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.69% of the company’s stock.

Large investors have recently added to or reduced their stakes in the company. Rockefeller Capital Management L.P. increased its stake in shares of Apache by 357.6% in the 1st quarter. Rockefeller Capital Management L.P. now owns 787 shares of the energy company’s stock valued at $27,000 after acquiring an additional 615 shares in the last quarter. Capital Investment Advisory Services LLC bought a new stake in shares of Apache in the 4th quarter valued at $29,000. Truehand Inc bought a new stake in shares of Apache in the 4th quarter valued at $38,000. Cresset Asset Management LLC bought a new stake in Apache during the 1st quarter valued at $39,000. Finally, Rational Advisors LLC increased its stake in Apache by 12,875.0% during the 4th quarter. Rational Advisors LLC now owns 1,557 shares of the energy company’s stock valued at $41,000 after purchasing an additional 1,545 shares in the last quarter. Institutional investors own 99.29% of the company’s stock.

About Apache

Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids (NGLs). The company has operations in onshore assets located in the Permian and Midcontinent/Gulf Coast onshore regions; and offshore assets situated in the Gulf of Mexico region.

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