TD Cowen analyst David Deckelbaum has maintained their neutral stance on APA stock, giving a Hold rating on April 25.
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David Deckelbaum has given his Hold rating due to a combination of factors surrounding APA’s recent performance and strategic decisions. The company reported strong quarterly results, surpassing expectations in production, EBITDAX, and capital expenditures, primarily due to enhanced drilling efficiency in the Permian Basin. However, despite these positive outcomes, the sale of New Mexico assets and the associated reduction in expected production volumes may have tempered the overall outlook.
Moreover, APA’s proactive cost reduction initiatives, which are ahead of schedule, indicate a positive trajectory in terms of operational efficiency and financial management. The company plans to use the proceeds from asset sales to reduce debt, which is a prudent financial strategy. Nonetheless, the potential impact of fluctuating commodity prices and the need for further activity adjustments could introduce uncertainties, justifying the Hold rating as the company navigates these variables.
In another report released on April 25, Scotiabank also maintained a Hold rating on the stock with a $14.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of APA in relation to earlier this year.