Considering Buying Apache Corporation (APA)? Read This First

Analysts at Seaport Global Securities upped their rating on shares of Apache Corporation (NYSE:APA) from Sell to Neutral in their opinion released on December 10.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Apache Corporation (NYSE:APA)’s prospects. The earliest insider trade took place on 09/27/2018. Hoyt Rebecca A parted with a total of 6.11 thousand shares of company at average share price of $47.48. The total for the sales was set at $290.15 thousand. After this transaction, the Sr. Vice Pres, Chief Acct Off account balance stood at 44.27 thousand shares. The stock lost -34.5 percent since that insider sale. On 08/27/2018, Riney Stephen J, Executive Vice Pres & CFO, sold 6.3 thousand shares at a price per share of $43.54. This removed 274.3 thousand shares from the insider’s fortune and the stock saw a -28.57 percent retreat in value since the news became public. This transaction left 67.08 thousand shares in the Executive Vice Pres & CFO account. On 08/27/2018, Executive Vice Pres & CFO Riney Stephen J performed a purchase transaction worth $274.11 thousand. This purchase at $43.51 each has added 6.3 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -28.52 percent decrease since the transaction was reported. The insider now is left with 67.08 thousand shares remaining in the account. Christmann John J, who performs the CEO and President job, sold 6.3 thousand shares for $275.18 thousand. The disposal occurred on 08/27/2018 was priced at $43.68 per share. The share price plunged -28.8 percent since the reporting date. Christmann John J now left with a stake of 238.57 thousand APA stock worth $7.42 million after the insider selling.

Apache Corporation (APA) is expected to jump by 25.95 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $51-month high price target. This represents a whopping 63.99 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $36.5, which represents a return potential of 17.36 percent when compared to the closing price of the stock of $31.1 on Friday, January 11. The lowest price target for the stock is $23 — slightly more than -26.05 percent from APA’s current share price.

The shares are currently floating around the first support level of $30.56. Below this, the next support is placed in the zone of $30.02. Till the time, the APA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.22 on daily chart, which may remain a cause for concern. If the price breaks below $30.02 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $31.43 mark may result into a pull-back move towards $31.76 level.

APA shares accumulated 0.14 points or 0.45 percent on Friday to $31.1 with a heavy trade volume of 4.91 million shares. After opening the session at $30.65, the shares went as high as $31.22 and as low as $30.35, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $11.9 billion and now has 383 million shares outstanding. Apache Corporation (APA) stock has gained 1.73 percent of market value in 21 trading days.

APA stock has a trailing 3-year beta of 1.63, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.58 a share in the trailing twelve months. The stock’s value has surged 18.48 percent year to date (YTD) against a decline of -29.3 percent in 12 month’s time. The company’s shares still trade -37.84 percent away from its 1-year high of $50.03 and 26.63 percent up from 52-week low of $24.56. The average consensus rating on the company is 2.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Apache Corporation (APA) are trading at a P/E ratio of 13.6 times earnings reported for the past 12 months. The industry APA operates in has an average P/E of 16.71. Its P/E ratio went as low as 11.41X and as high as 18.56 over the 5-year span. Further, it is sporting a 1.65 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.8. 80.3 percent is the gross profit margin for Apache Corporation and operating margin sits at 21.9 percent. Along with this, the net profit margin is 12.1 percent.