Let’s reassess the active stocks with an eye toward APA stock. Just how should we respond to Tuesday’s drubbing? Is the mighty fruit now destined to decay? Or is this a mere bruising and nothing more? On 12 February, shares of Apache Corporation (NYSE:APA) closed higher after a volatile session. The shares accumulated 0.73 points or 2.41 percent at $31.08 with a light trade volume of 4.801 million shares. After opening the session at $30.98, the shares went as high as $31.61 and as low as $30.945, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $12.1 billion and now has 387.93 million shares outstanding. Apache Corporation (APA) stock has lost -0.06 percent of market value in 21 trading days.
APA stock has a trailing 3-year beta of 1.77, 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 18.4 percent year to date (YTD) against a decline of -16.52 percent in 12 month’s time. The company’s shares still trade -37.88 percent away from its 1-year high of $50.03 and 26.55 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.
Apache Corporation (APA) will probably climb 20.01 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $48 price as 12-month high target. This represents a whopping 54.44 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $35, which represents a return potential of 12.61 percent when compared to the closing price of the stock of $31.08 on Tuesday, February 12. The lowest price target for the stock is $23 — slightly more than -26 percent from APA’s current share price.
History has shown that shares in Apache Corporation have gone down on 24 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. Investors will get their next glimpse of APA’s Q4 earnings on February 27. Analysts are forecasting revenue to climb 12.6 percent to $1.79B in the fiscal fourth quarter, while earnings are seen soaring by nearly -27.27 percent to $0.24 per share. It earned $0.63 per share, better than the $0.47, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.98B, better than the $1.91B analysts expected. Earnings are estimated to increase by 202.2 percent this year, -67.59 percent next year and continue to increase by 73.84 percent annually for the next 5 years.
Let’s take a look at some insider activity at Apache Corporation (NYSE:APA) and see the pattern. 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 -34.54 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 -28.62 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 -28.57 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 -28.85 percent since the reporting date. Christmann John J now left with a stake of 238.57 thousand APA stock worth $7.41 million after the insider selling.
The stock is currently hovering around the first support level of $30.81. Below this, the next support is placed in the zone of $30.55. Till the time, the APA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.28 on daily chart, which may remain a cause for concern. If the price breaks below $30.55 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $31.48 mark may result into a pull-back move towards $31.88 level.
Shares of Apache Corporation (APA) are trading at a P/E ratio of 11.76 times earnings reported for the past 12 months. The industry APA operates in has an average P/E of 9.13. 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 1.67 on the Price-to-Sales ratio. Compare this with the industry average P/S of 79.36. 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.