Mario Gabelli Was Right About These 3 Stocks

2. APA Corporation (NASDAQ:APA)

Number of Hedge Fund Holders: 46 

Percentage Increase in Share Price (YTD): 69.71%

APA Corporation (NASDAQ:APA) develops and produces oil and gas properties. Securities filings reveal that GAMCO Investors owned 42,050 shares of APA Corporation (NASDAQ:APA) at the end of March 2022 worth $1.7 million, representing 0.01% of the portfolio. The fund last held a stake in the firm during the first quarter of 2021. That position, sold in the next quarter, consisted of over 10,300 shares purchased at an average price of $18.26 per share. The present stake was purchased at an average price of $34.89 per share. 

On May 31, Mizuho analyst Vincent Lovaglio maintained a Buy rating on APA Corporation (NASDAQ:APA) stock and raised the price target to $60 from $56, noting that global energy undersupply was continuing to drive energy commodity prices higher. 

At the end of the first quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in APA Corporation (NASDAQ:APA), compared to 42 in the previous quarter worth $810 million. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in APA Corporation (NASDAQ:APA), with 19.5 million shares worth more than $806 million. 

Here is what Oakmark Funds has to say about APA Corporation (NASDAQ:APA) in its Q1 2022 investor letter:

“Our oil holding, APA Corporation (NASDAQ:APA) (+54%) was one of our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”