BP (NYSE:BP) Stock Sees Heavy Call Option Buying

BP p.l.c. (NYSE:BP) was the recipient of some unusual options trading activity on Tuesday. Stock traders bought 27,036 call options on the company. This represents an increase of 51% compared to the average volume of 17,937 call options.

BP Price Performance

BP traded up $1.68 during midday trading on Tuesday, hitting $48.41. The company had a trading volume of 7,057,823 shares, compared to its average volume of 10,807,616. BP has a twelve month low of $32.72 and a twelve month high of $48.74. The company has a market capitalization of $126.80 billion, a PE ratio of 23.61, a P/E/G ratio of 0.48 and a beta of 0.20. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.95 and a current ratio of 1.27. The firm’s 50-day simple moving average is $44.07 and its 200-day simple moving average is $43.53.

BP (NYSE:BP) last announced its earnings results on Monday, August 3rd. The oil and gas exploration company reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.87 by $0.35. BP had a net margin of 2.49% and a return on equity of 16.63%. The company had revenue of $69.11 billion for the quarter, compared to analyst estimates of $57.89 billion. During the same period in the prior year, the business earned $0.90 earnings per share. BP’s quarterly revenue was up 106.1% on a year-over-year basis. Equities research analysts predict that BP will post 7.28 EPS for the current fiscal year.

BP Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, August 14th were paid a dividend of $0.5196 per share. This represents a $2.08 annualized dividend and a dividend yield of 4.3%. This is a boost from BP’s previous quarterly dividend of $0.4992. The ex-dividend date of this dividend was Friday, August 14th. BP’s payout ratio is currently 100.49%.

Wall Street Analysts Forecast Growth

BP has been the subject of several recent analyst reports. Zacks Research raised shares of BP from a “hold” rating to a “strong-buy” rating in a report on Tuesday, September 8th. Oppenheimer assumed coverage on BP in a report on Thursday, October 1st. They issued an “outperform” rating on the stock. BTIG Research lowered BP to a “neutral” rating in a research report on Thursday, October 1st. Evercore upgraded BP to an “outperform” rating in a research report on Monday, October 5th. Finally, Needham & Company LLC started coverage on BP in a report on Thursday, October 1st. They set a “hold” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, BP currently has a consensus rating of “Moderate Buy” and an average price target of $48.44.

Institutional Trading of BP

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BP. Russell Investments Group Ltd. increased its position in shares of BP by 15.8% in the second quarter. Russell Investments Group Ltd. now owns 1,410,714 shares of the oil and gas exploration company’s stock worth $52,307,000 after purchasing an additional 192,211 shares during the period. Readystate Asset Management LP lifted its position in BP by 322.4% during the second quarter. Readystate Asset Management LP now owns 619,670 shares of the oil and gas exploration company’s stock worth $22,897,000 after purchasing an additional 472,974 shares during the period. Kahn Brothers Group Inc. acquired a new stake in BP during the second quarter worth about $23,094,000. Global Retirement Partners LLC acquired a new stake in BP during the second quarter worth about $1,592,000. Finally, denkapparat Operations GmbH bought a new position in BP in the 2nd quarter valued at about $1,351,000. 11.01% of the stock is currently owned by institutional investors and hedge funds.

BP News Summary

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP expects third-quarter net debt of approximately $13.5 billion-$14.5 billion, down from $22.3 billion at the end of the second quarter. The reduction reportedly brings forward the company’s 2027 debt target and reflects stronger cash generation from oil and gas trading and refining. BP Debt Shrinks With Boost From Oil and Gas Trading, Refining
• Positive Sentiment: BP forecasts a significant improvement in its third-quarter refining indicator margin, with reports describing a potential tripling from the prior quarter. Higher refining margins and stronger gas trading are expected to support earnings. BP expects significantly higher gas trading in third quarter
• Positive Sentiment: Rising crude prices have helped BP’s shares recover from their July low, improving the earnings backdrop for the company’s upstream operations. Investors are also viewing the stronger balance sheet as giving management greater flexibility ahead of the December strategy presentation. BP Share price breaks key level as oil surges, and Meg O’Neill plans new strategy
• Positive Sentiment: BP is among the oil and gas companies using NVIDIA-powered computing for geological analysis, drilling decisions and operational efficiency. The initiative could provide longer-term productivity benefits, although it is not an immediate earnings catalyst. 4 Oil & Gas Firms Betting on NVIDIA-Powered AI Technology
• Neutral Sentiment: BP is expected to outline a new corporate strategy in December under CEO Meg O’Neill. The update could clarify capital allocation, portfolio priorities and the company’s approach to oil, gas and low-carbon assets. BP Plans Strategy Update as Balance Sheet Strengthens
• Negative Sentiment: BP expects up to $4.5 billion of third-quarter net impairment charges, primarily tied to gas and low-carbon assets. These noncash charges could weigh on reported earnings and highlight risks in parts of the company’s portfolio, partially offsetting the debt and refining improvements. BP Flags Up to $4.5 Billion in Impairments as Refining Margins Jump

About BP

BP p.l.c. is a global integrated energy company headquartered in London, United Kingdom. Its operations span the exploration, development and production of oil and natural gas, as well as the processing, refining, transportation and marketing of energy products.

Through its businesses, BP supplies fuels for road transportation, aviation and marine use, along with lubricants marketed under the Castrol brand. The company also operates retail fuel and convenience locations and provides energy products and services to commercial and industrial customers.

BP has expanded its activities beyond traditional hydrocarbons to include lower-carbon businesses such as renewable power, bioenergy, electric-vehicle charging and hydrogen.