Morgan Stanley Reiterates Sell Rating on APA Corporation
Morgan Stanley maintains its sell rating on APA Corporation with a $41 price target, a 27.93% upside from the current price.
Key Points
- Morgan Stanley reiterated its sell rating on APA Corporation with a $41 price target on June 29, 2026.
- Morgan Stanley's $41 price target implies 27.93% upside from APA Corporation's ($APA) current $32.05 share price.
- APA Corporation's stock was trading at $33.29 on Monday, with a market cap of $11.67 billion and a P/E ratio of 7.69.
- Insider activities show mixed buying and selling, while analysts have varied ratings with a consensus hold recommendation.
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Morgan Stanley reiterated its sell rating on APA Corporation (NasdaqGS: APA) with a price target of $41. This rating, maintained by analyst Devin McDermott, was announced on June 29, 2026. Shares of APA Corporation traded at $33.29 on Monday.
Morgan Stanley vs. the S&P 500
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Other Institutional Activity in APA Corporation
BlackRock, Inc. increased its holdings in APA Corporation by 9,338,315 shares, ending with 33,780,445 shares valued at about $1.43 billion. Hotchkis & Wiley Capital Management LLC reduced its position by 3,431,530 shares, holding 32,015,114 shares worth approximately $1.36 billion. State Street Corp added 561,393 shares, bringing its total to 24,803,994 shares, valued at about $1.05 billion. Vanguard Capital Management LLC and Vanguard Portfolio Management LLC both opened new positions, with 22,973,674 and 17,279,938 shares, respectively.
APA Corporation Stock Down 24.7%
Shares of APA Corporation traded near $33.29 on Monday. The company has a market cap of $11.67 billion and a P/E ratio of 7.69. Its forward P/E is slightly higher at 7.72. APA's stock has seen a 52-week low of $17.86 and a high of $45.66. The 50-day moving average is $37.28, while the 200-day moving average is $30.06. The company maintains a current ratio of 0.92 and a quick ratio of 0.70, with a debt-to-equity ratio of 61.31.
$APA price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
APA Corporation reported revenue of $8.37 billion with a negative revenue growth of 11.9%. The company's net margin stands at 18.3%, with a return on equity of 26.2%. APA's next earnings report is scheduled for August 5, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
5 target raises vs 1 cuts.
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EPS & revenue
EPS beat estimates by 21.9%. Revenue beat estimates by 8.0%.
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Profit surprise
EBITDA beat by 18 percent. Operating income beat by 37 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
5 target raises, 1 target cut.
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Earnings quality
Gross margin up 58.5 points. Operating margin up 13.6 points. Positive free cash flow.
Earnings Call Summary
APA delivered a strong first quarter with $2.3 billion in revenue and $1.38 in earnings per share, beating consensus expectations. The Permian is running more efficiently with fewer rigs and lower costs while still producing more oil. Egypt benefited from gas development and improved operations, generating nearly $500 million in free cash flow. The company is focused on paying down debt toward a $3 billion target and returning cash to shareholders while advancing the Suriname project toward first oil in 2028.
Guidance The company expects about $2.2 billion in free cash flow for the full year and plans to keep capital spending at $2.1 billion. They raised their U.S. oil production goal to 122,000 barrels per day but lowered Egypt adjusted volumes because higher oil prices reduce the volumes they can count under their contract terms. They still expect about $1.1 billion from their gas trading business.
Clearly positive report. Results were better than expected, though the forward reset is not the strongest.
Dividend
APA Corporation pays an annual dividend rate of $1.00, yielding 3.03% with a payout ratio of 23.31%.
Insider Buying and Selling at APA Corporation
On May 26, 2026, Executive VP Exploration Tracey Henderson bought 5,000 shares and sold 1,968 shares at an average price of $37.50. On the same day, Henderson also sold another 5,000 shares. Executive VP - Administration Mark Maddox bought 15,500 shares at $39.32 and sold 9,800 shares at $40.04 on May 20, 2026. Annell Bay made a purchase of 1,178 shares on March 31, 2026.
Analysts Set New Price Targets
On June 29, 2026, Morgan Stanley maintained its sell rating on APA Corporation with a $41 price target. Roth Capital upgraded the stock to a buy with a $38 target on June 22, 2026. Mizuho maintained a sell rating with a $36 target on May 27, 2026. The consensus recommendation is a hold, with an average target price of $43.46 based on 24 analyst opinions.
About APA Corporation
APA Corporation is an independent energy company headquartered in Houston, Texas. It explores for, develops, and produces natural gas, crude oil, and natural gas liquids. The company operates in the United States, Egypt, and the North Sea, with additional exploration activities in Suriname and Uruguay. Founded in 1954, APA is led by CEO John J. Christmann IV and employs approximately 1,791 people.
Bottom Line
Morgan Stanley's reiterated sell rating on APA Corporation highlights ongoing caution among analysts. APA's stock performance and insider activities offer insights into its market dynamics. As a reminder, 13F filings and analyst ratings are backward-looking and may not reflect current positions or opinions.
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