BP (NYSE:BP) Shares Gap Down - Time to Sell?

Key Points

• BP shares fell sharply, gapping down from $44.36 to an opening price of $42.50 and last trading around $42.65, after the stock dropped about 4.5% on the day.
• Governance concerns are pressuring sentiment after BP removed Chairman Albert Manifold amid conduct and oversight issues, adding to worries about leadership instability and execution of the company’s strategy shift.
• Despite the selloff, recent fundamentals were solid: BP beat quarterly earnings and revenue estimates, and it continues to offer a sizable dividend yield of about 4.7%, though analysts remain mixed with a consensus rating of “Moderate Buy.”

BP p.l.c. (NYSE:BP - Get Free Report) gapped down prior to trading on Tuesday . 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 changing hands.

More BP News

Here are the key news stories impacting BP this week:

• Negative Sentiment: BP removed Chairman Albert Manifold immediately after citing governance and conduct concerns, fueling investor worries about internal controls and leadership stability. BP removes chairman Albert Manifold, citing 'oversight and conduct' issues
• Negative Sentiment: The ouster adds to a long run of executive turnover at BP, reinforcing concerns that the company’s strategic reset toward oil and gas may be harder to execute than expected. BP ousts chairman over 'serious' governance concerns
• Neutral Sentiment: BP appointed Ian Tyler as interim chair while it searches for a permanent replacement, limiting immediate operational disruption but not removing uncertainty. BP removes Albert Manifold as chair citing governance concerns
• Neutral Sentiment: Separately, broader energy-market weakness from falling oil prices has also weighed on BP and other integrated oil names today. BP and Shell shares slide after oil prices drop on talks to end Iran war

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on BP shares. Wells Fargo & Company upped their target price on BP from $39.00 to $54.00 and gave the company an "equal weight" rating in a research report on Thursday, April 9th. UBS Group raised BP from a "neutral" rating to a "buy" rating in a research note on Wednesday, April 15th. Morgan Stanley raised BP from an "equal weight" rating to an "overweight" rating and set a $49.40 price objective for the company in a research note on Tuesday, March 24th. Melius Research downgraded BP from a "buy" rating to a "sell" rating and set a $31.00 target price for the company. in a research note on Wednesday, February 11th. Finally, Scotiabank increased their price target on BP from $41.00 to $58.00 and gave the stock a "sector outperform" rating in a report on Wednesday, April 22nd. Three research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $46.14.

BP Stock Down 4.5%

The business has a fifty day moving average of $45.53 and a 200 day moving average of $39.78. The company has a market capitalization of $110.96 billion, a PE ratio of 35.31, a PEG ratio of 0.57 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 - Get Free Report) last announced its earnings results on Tuesday, April 28th. The oil and gas exploration company reported $1.24 EPS for the quarter, beating 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 during the quarter, compared to analysts' expectations of $48.50 billion. During the same period last year, the business posted $0.53 EPS. BP's revenue for the quarter was up 11.4% on a year-over-year basis. Equities research analysts anticipate that BP p.l.c. will post 5.08 EPS for the current year.

BP Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, May 15th will be given a $0.4992 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.00 dividend on an annualized basis and a yield of 4.7%. BP's dividend payout ratio (DPR) is currently 165.00%.

Institutional Investors Weigh In On BP

A number of hedge funds have recently bought and sold shares of BP. Sound Shore Management Inc. CT acquired a new stake in BP in the 4th quarter valued at about $67,890,000. Public Employees Retirement System of Ohio acquired a new stake in shares of BP during the 1st quarter worth about $28,136,000. New York State Common Retirement Fund acquired a new stake in shares of BP during the 4th quarter worth about $17,768,000. Sagefield Capital LP raised its position in shares of BP by 125.2% during the 4th quarter. Sagefield Capital LP now owns 493,556 shares of the oil and gas exploration company's stock worth $17,141,000 after acquiring an additional 274,381 shares in the last quarter. Finally, Milford Funds Ltd. acquired a new stake in shares of BP during the 4th quarter worth about $8,335,000. Institutional investors and hedge funds 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.

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