Roth Capital Upgrades APA Corporation to Buy
Roth Capital raises APA Corporation's rating to buy with a new target price of $38, a 15.22% upside from the current price.
Key Points
- Roth Capital upgraded APA Corporation to a buy rating on June 22, 2026, with a target price of $38.
- Roth Capital's $38 price target implies 15.22% upside from APA Corporation's ($APA) current $32.98 share price.
- APA Corporation shares traded near $33.03 on Monday, with a market cap of $11.68 billion and a P/E ratio of 7.7.
- Insider transactions and peer fund activities indicate mixed sentiments, with notable share additions and reductions.
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Roth Capital has upgraded its rating on APA Corporation (NasdaqGS:APA) to a buy, setting a new price target of $38. Analyst Leo Mariani announced the change on June 22, 2026. This suggests optimism about APA's future prospects.
Roth Capital vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
APA Corporation Stock Down 23.6%
Shares of APA Corporation traded near $33.03 on Monday. The company has a market cap of approximately $11.68 billion and a P/E ratio of 7.7. APA's stock has seen a 52-week low of $17.74 and a high of $45.66. The 50-day moving average is $37.73, while the 200-day moving average stands at $29.79. The current ratio is 0.919, indicating its ability to cover short-term liabilities, and the quick ratio is 0.702. APA has a debt-to-equity ratio of 61.314.
$APA price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
APA Corporation reported revenue of about $8.37 billion, though it experienced a revenue decrease of 11.9%. The net margin is 18.3%, and return on equity is 26.2%. The company posted earnings per share of $4.29. APA is expected to announce its next earnings on 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 offers an annual dividend rate of $1.00, yielding approximately 3.03%. The dividend payout ratio is 23.31%, reflecting a conservative approach to shareholder returns.
Insider Buying and Selling at APA Corporation
Recent insider activity at APA Corporation includes several transactions. On May 26, 2026, Executive VP Exploration Tracey Henderson purchased 5,000 shares and sold 1,968 shares at an average price of $37.50. On May 20, 2026, Executive VP - Administration Mark Maddox bought 15,500 shares at $39.32 and sold 9,800 shares at $40.04. Additionally, Annell Bay acquired 1,178 shares on March 31, 2026.
Analysts Set New Price Targets
On June 22, 2026, Roth Capital upgraded APA Corporation to a buy rating, setting a price target of $38. Other analysts have maintained varying ratings: Mizuho kept a sell rating with a $36 target on May 27, 2026, while Barclays maintained a hold rating with a $41 target on May 26, 2026. The consensus recommendation is hold, with a mean price target of $43.24 based on 25 analyst opinions.
About APA Corporation
APA Corporation is an independent energy company based in Houston, Texas. It focuses on exploring, developing, and producing natural gas, crude oil, and natural gas liquids. The company operates in the United States, Egypt, and the North Sea, and has exploration activities in Suriname and interests in projects globally. Led by CEO John J. Christmann IV, APA was founded in 1954 and employs approximately 1,791 people.
Bottom Line
Roth Capital's upgrade of APA Corporation to a buy rating with a $38 target highlights positive sentiment towards the company's prospects. Investors track these analyst actions closely, as they can influence market perceptions. It's important to remember that these recommendations are based on past performance and market conditions, and may not reflect future developments.
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