BP Target of Unusually Large Options Trading (NYSE:BP)

BP p.l.c. (NYSE:BP) was the recipient of some unusual options trading activity on Thursday. Investors bought 32,885 call options on the company. This represents an increase of approximately 47% compared to the typical volume of 22,402 call options.

BP Stock Performance

BP opened at $41.03 on Friday. BP has a 1-year low of $31.58 and a 1-year high of $48.27. The stock has a market cap of $107.45 billion, a P/E ratio of 34.19, a P/E/G ratio of 0.75 and a beta of 0.17. The stock’s 50 day simple moving average is $41.42 and its 200 day simple moving average is $41.04. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.22 and a quick ratio of 0.87.

BP (NYSE:BP) last posted its earnings results on Tuesday, April 28th. The oil and gas exploration company reported $1.24 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.24. BP had a return on equity of 12.06% and a net margin of 1.62%.The company had revenue of $52.26 billion for the quarter, compared to the consensus estimate of $48.50 billion. During the same period in the previous year, the business earned $0.53 earnings per share. BP’s quarterly revenue was up 11.4% compared to the same quarter last year. As a group, equities analysts anticipate that BP will post 5.23 EPS for the current fiscal year.

BP Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, May 15th were paid a $0.4992 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 4.9%. The ex-dividend date of this dividend was Friday, May 15th. BP’s dividend payout ratio is presently 165.00%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on BP. Morgan Stanley raised BP from an “equal weight” rating to an “overweight” rating and set a $49.40 target price for the company in a research note on Tuesday, March 24th. Wells Fargo & Company upped their price objective on BP from $39.00 to $54.00 and gave the stock an “equal weight” rating in a report on Thursday, April 9th. Wall Street Zen cut BP from a “strong-buy” rating to a “buy” rating in a research report on Saturday, June 20th. HSBC raised BP from a “reduce” rating to a “hold” rating and raised their target price for the company from $35.10 to $45.30 in a report on Friday, March 20th. Finally, Scotiabank upped their price target on shares of BP from $41.00 to $58.00 and gave the stock a “sector outperform” rating in a research note on Wednesday, April 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $46.64.

BP News Summary

Here are the key news stories impacting BP this week:

• Positive Sentiment: Investors bought far more BP call options than usual, suggesting some traders are positioning for further upside in the shares.
• Positive Sentiment: BP said its stronger oil trading helped it benefit from higher energy prices, supporting near-term earnings momentum.
• Positive Sentiment: The company’s venture portfolio simplification and asset sales are being framed as portfolio optimization and deleveraging moves, which could improve capital efficiency.
• Neutral Sentiment: BP is offering a limited-time fuel discount through its rewards Visa card, a consumer promotion that may help station traffic but is unlikely to materially change the stock’s outlook.
• Neutral Sentiment: BP also received coverage noting strong Q2 performance and potential earnings estimate revisions, which may reinforce expectations already reflected in recent trading.
• Negative Sentiment: BP is shutting down BP Ventures after nearly 20 years and selling most minority holdings, signaling a retreat from parts of its low-carbon and venture investing strategy and highlighting that returns were reportedly weak.
• Negative Sentiment: The company also recorded a $1 billion impairment tied to its low-carbon portfolio, underscoring the financial cost of earlier energy-transition bets.

Institutional Trading of BP

Several institutional investors and hedge funds have recently modified their holdings of BP. Sound Shore Management Inc. CT purchased a new position in shares of BP during the 4th quarter worth approximately $67,890,000. Public Employees Retirement System of Ohio purchased a new stake in BP in the 1st quarter valued at approximately $28,136,000. New York State Common Retirement Fund acquired a new stake in BP during the 4th quarter valued at $17,768,000. Sagefield Capital LP increased its position in BP by 125.2% during the fourth quarter. Sagefield Capital LP now owns 493,556 shares of the oil and gas exploration company’s stock worth $17,141,000 after buying an additional 274,381 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in shares of BP by 20.7% in the first quarter. Bank of New York Mellon Corp now owns 432,646 shares of the oil and gas exploration company’s stock worth $20,334,000 after acquiring an additional 74,243 shares during the last quarter. Hedge funds and other institutional investors own 11.01% of the company’s stock.

About BP

BP plc is a British multinational integrated energy company headquartered in London. Originating in the early 20th century as the Anglo-Persian Oil Company, BP has grown into one of the world’s largest oil and gas companies, operating across exploration and production, refining and marketing, trading, and a range of low-carbon businesses.

The company’s core activities include upstream exploration and production of crude oil and natural gas, midstream and trading operations, and downstream refining, marketing and supply of fuels, lubricants and petrochemicals.