BP (NYSE:BP) Shares Gap Down After Analyst Downgrade

Shares of BP p.l.c. (NYSE:BP) gapped down prior to trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $44.36, but opened at $42.50. BP shares last traded at $42.65, with a volume of 4,603,446 shares trading hands.

Other equities research analysts have also recently issued reports about the stock. BNP Paribas Exane set a $57.00 price target on shares of BP and gave the stock an “outperform” rating in a research report on Friday, April 17th. Scotiabank boosted their price target on shares of BP from $41.00 to $58.00 and gave the stock a “sector outperform” rating in a research report on Wednesday, April 22nd. Weiss Ratings raised shares of BP from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, March 24th. TD Cowen cut their price target on shares of BP from $37.00 to $35.00 and set a “hold” rating on the stock in a research report on Friday, February 13th. Finally, Wells Fargo & Company boosted their price target on shares of BP from $39.00 to $54.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 9th. Two 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 issued a Sell rating to the company. According to MarketBeat.com, BP presently has an average rating of “Moderate Buy” and an average price target of $46.14.

BP News Roundup

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP is set to become operator of the Babek offshore natural gas project in Azerbaijan, a move that could expand its production footprint and support future cash flow. Reuters article on BP Azerbaijan project
• Positive Sentiment: BP is expanding its renewable and low-carbon portfolio, reinforcing its cleaner-energy strategy and longer-term transition narrative. Zacks article on BP renewables
• Neutral Sentiment: Analysts continue to debate BP’s valuation after a strong run in the shares, but the stock still has support from its earnings power and energy-market exposure. Yahoo Finance valuation article
• Negative Sentiment: BP’s boardroom turmoil intensified after the company removed Chairman Albert Manifold over governance and conduct concerns, raising questions about stability at the top. Reuters article on Elliott meeting
• Negative Sentiment: Manifold’s public rebuttals, bullying accusations, and talk of legal action are prolonging the controversy and adding uncertainty for investors. Barron’s/Yahoo article on Manifold defense

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Strategic Advocates LLC acquired a new position in shares of BP during the 3rd quarter worth approximately $25,000. Financial Life Planners acquired a new position in shares of BP during the 1st quarter worth approximately $39,000. YANKCOM Partnership grew its position in shares of BP by 1,068.3% during the 4th quarter. YANKCOM Partnership now owns 958 shares of the oil and gas exploration company’s stock worth $33,000 after purchasing an additional 876 shares in the last quarter. Triumph Capital Management acquired a new position in shares of BP during the 3rd quarter worth approximately $43,000. Finally, LRI Investments LLC grew its position in shares of BP by 76.2% during the 4th quarter. LRI Investments LLC now owns 1,276 shares of the oil and gas exploration company’s stock worth $44,000 after purchasing an additional 552 shares in the last quarter. Institutional investors and hedge funds own 11.01% of the company’s stock.

BP Stock Performance

The stock’s 50-day simple moving average is $45.50 and its 200-day simple moving average is $39.87. The stock has a market cap of $108.94 billion, a price-to-earnings ratio of 34.67, a price-to-earnings-growth ratio of 0.54 and a beta of 0.18. The company has a current ratio of 1.22, a quick ratio of 0.87 and a debt-to-equity ratio of 0.68.

BP (NYSE:BP) last announced its earnings results on Tuesday, April 28th. The oil and gas exploration company reported $1.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.00 by $0.24. BP had a net margin of 1.62% and a return on equity of 12.06%. The firm had revenue of $52.26 billion for the quarter, compared to analyst estimates of $48.50 billion. During the same quarter in the prior year, the business posted $0.53 EPS. The business’s revenue was up 11.4% compared to the same quarter last year. Analysts forecast that BP p.l.c. will post 5.08 earnings per share for the current fiscal year.

BP Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, May 15th will be given a dividend of $0.4992 per share. The ex-dividend date is Friday, May 15th. This represents a $2.00 annualized dividend and a dividend yield of 4.8%. BP’s dividend payout ratio (DPR) is currently 165.00%.

BP Company Profile

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.