BP p.l.c. (NYSE:BP) Sees Large Decline in Short Interest

Key Points

• Short interest in BP plunged 35.1% in June to 10.7 million shares, with only about 0.4% of the float sold short. The short-interest ratio fell to just 0.9 days, signaling reduced bearish positioning.
• BP shares rose 1.4% to $41.66, while recent trading activity and options flow suggested renewed investor interest. The stock remains near its moving averages, with a market cap of about $109.1 billion.
• Recent news has centered on BP’s upstream oil and gas strategy, including reported Iraq investment plans and portfolio simplification efforts. Analysts remain generally positive, with a consensus rating of “Moderate Buy” and an average target price of $46.64.

BP p.l.c. (NYSE:BP - Get Free Report) was the recipient of a significant decline in short interest in June. As of June 30th, there was short interest totaling 10,722,922 shares, a decline of 35.1% from the June 15th total of 16,532,927 shares. Approximately 0.4% of the company's stock are short sold. Based on an average daily volume of 11,892,327 shares, the short-interest ratio is presently 0.9 days.

Key BP News

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP is reportedly preparing a major Iraq investment alongside ConocoPhillips, including a stake sale tied to Kirkuk oilfields, which could expand production and strengthen BP’s upstream growth profile. BP, ConocoPhillips to back Iraq with major investments, CNBC reports
• Positive Sentiment: Citi’s view that BP’s biggest turnaround opportunity lies in its upstream oil and gas business supports the idea that the company is moving toward a more profitable, investor-friendly strategy. BP's big opportunity is in its upstream oil and gas business - analyst
• Positive Sentiment: Options activity was unusually bullish, with call volume running well above average, which can signal rising trader interest ahead of the Iraq-related announcements.
• Neutral Sentiment: BP is shutting down its venture capital arm and selling most minority holdings, a portfolio simplification move that may improve capital discipline but also highlights a retreat from earlier clean-energy bets. ConocoPhillips to buy 42% stake in BP unit tied to Iraq's Kirkuk oilfields
• Neutral Sentiment: Analysts at Erste Group trimmed their FY2027 EPS estimate for BP slightly, which is a modest headwind but not a major change to the overall earnings outlook.

BP Stock Up 1.4%

Shares of BP stock traded up $0.58 during trading on Friday, hitting $41.66. 2,875,270 shares of the stock were exchanged, compared to its average volume of 11,676,085. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.22 and a quick ratio of 0.87. The firm's 50-day moving average price is $41.42 and its 200 day moving average price is $41.04. The stock has a market cap of $109.10 billion, a price-to-earnings ratio of 34.71, a price-to-earnings-growth ratio of 0.75 and a beta of 0.17. BP has a 12-month low of $31.58 and a 12-month high of $48.27.

BP (NYSE:BP - Get Free Report) last posted its earnings results on Tuesday, April 28th. The oil and gas exploration company reported $1.24 EPS for the quarter, beating the consensus estimate of $1.00 by $0.24. The firm had revenue of $52.26 billion for the quarter, compared to analyst estimates of $48.50 billion. BP had a return on equity of 12.06% and a net margin of 1.62%.BP's revenue for the quarter was up 11.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.53 earnings per share. As a group, analysts forecast that BP will post 5.23 earnings per share for the current fiscal year.

BP Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, May 15th were paid a dividend of $0.4992 per share. The ex-dividend date was Friday, May 15th. This represents a $2.00 annualized dividend and a yield of 4.8%. BP's payout ratio is presently 165.00%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Argus upgraded shares of BP from a "hold" rating to a "buy" rating and set a $50.00 target price on the stock in a report on Monday, May 11th. Morgan Stanley raised BP from an "equal weight" rating to an "overweight" rating and set a $49.40 price objective on the stock in a research report on Tuesday, March 24th. Royal Bank Of Canada upgraded BP from a "sector perform" rating to an "outperform" rating in a research note on Monday, May 11th. TD Cowen lifted their target price on BP from $40.00 to $41.00 and gave the company a "hold" rating in a report on Thursday. Finally, Wells Fargo & Company upped their price target on BP from $39.00 to $54.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $46.64.

Institutional Trading of BP

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BP. Atlas Brown Inc. lifted its position in shares of BP by 1.0% during the 2nd quarter. Atlas Brown Inc. now owns 36,925 shares of the oil and gas exploration company's stock worth $1,364,000 after buying an additional 370 shares during the last quarter. GAMMA Investing LLC raised its stake in BP by 18.6% during the 2nd quarter. GAMMA Investing LLC now owns 10,052 shares of the oil and gas exploration company's stock worth $371,000 after acquiring an additional 1,573 shares in the last quarter. Versant Capital Management Inc lifted its position in BP by 4.8% in the second quarter. Versant Capital Management Inc now owns 7,953 shares of the oil and gas exploration company's stock valued at $294,000 after acquiring an additional 366 shares during the last quarter. Confluence Investment Management LLC acquired a new position in BP in the second quarter valued at $1,303,000. Finally, Parallel Advisors LLC grew its holdings in shares of BP by 8.6% during the first quarter. Parallel Advisors LLC now owns 29,724 shares of the oil and gas exploration company's stock worth $1,397,000 after purchasing an additional 2,359 shares during the last quarter. Institutional investors and hedge funds own 11.01% of the company's stock.

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.

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