BP p.l.c. (NYSE:BP) Sees Significant Increase in Short Interest

Key Points

• Short interest in BP surged 80.9% in June, reaching 16.53 million shares, or about 0.6% of the float. The short-interest ratio stands at 2.3 days based on recent trading volume.
• BP posted strong quarterly results, reporting EPS of $1.24 versus the $1.00 consensus and revenue of $52.26 billion, up 11.4% year over year. The company also continued to offer a hefty dividend, with a $2.00 annualized payout and a 5.5% yield.
• Analysts remain mixed but generally constructive on BP, with a consensus rating of “Moderate Buy” and an average target price of $46.14. Recent notes included upgrades from HSBC and RBC, while broader energy-sector concerns and management turnover added some caution.

BP p.l.c. (NYSE:BP - Get Free Report) was the target of a large increase in short interest in June. As of June 15th, there was short interest totaling 16,532,927 shares, an increase of 80.9% from the May 31st total of 9,136,996 shares. Based on an average daily trading volume, of 7,062,628 shares, the short-interest ratio is currently 2.3 days. Approximately 0.6% of the company's shares are sold short.

BP Stock Down 2.2%

Shares of BP stock opened at $36.13 on Thursday. The firm has a market cap of $94.61 billion, a PE ratio of 30.11, a P/E/G ratio of 0.67 and a beta of 0.17. The business's 50 day simple moving average is $42.90 and its 200 day simple moving average is $40.65. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.87 and a current ratio of 1.22. BP has a 52-week low of $29.99 and a 52-week high of $48.27.

BP (NYSE:BP - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The oil and gas exploration company reported $1.24 earnings per share 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 firm had revenue of $52.26 billion during the quarter, compared to the consensus estimate of $48.50 billion. During the same quarter in the prior year, the firm posted $0.53 EPS. The business's revenue was up 11.4% on a year-over-year basis. On average, analysts predict that BP will post 5.24 earnings per share for the current fiscal year.

BP Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, May 15th were paid a $0.4992 dividend. This represents a $2.00 annualized dividend and a yield of 5.5%. The ex-dividend date was Friday, May 15th. BP's payout ratio is presently 165.00%.

More BP News

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP finalized a Technical Services Contract with India’s ONGC, under which BP will support ONGC’s Western Offshore Basin operations. The deal adds another international service and partnership opportunity for BP’s upstream business. BP p.l.c. (BP) Finalizes Technical Services Contract with ONGC
• Positive Sentiment: BP also disclosed that it acquired a 10% stake in the Bab Gas Cap project in the UAE, reinforcing its presence in a major gas growth area and supporting longer-term production potential. BP Acquires 10% Stake in Bab Gas Cap Project in UAE
• Positive Sentiment: Analysts noted BP’s deleveraging efforts, including asset sales, cost cuts, and capital discipline, which could strengthen the company’s financial position over time. Here's How BP Enhances Financial Strength With Deleveraging Efforts
• Neutral Sentiment: BP was highlighted as a potential beneficiary of a favorable integrated-energy industry backdrop, with solid oil prices and a stable business model cited as supportive factors. 3 Integrated Energy Stocks to Gain From Promising Industry Trend
• Negative Sentiment: BP’s deputy CEO Carol Howle is set to retire later this year, and her role will not be replaced, adding to recent management turnover and raising concerns about leadership stability. BP deputy CEO Carol Howle retiring, role not being replaced
• Negative Sentiment: Broader energy-sector weakness also pressured BP as Morgan Stanley cut its oil forecast, warning of a possible global supply glut that could weigh on crude prices and energy stocks. BP, Shell, Chevron shares on edge as Morgan Stanley slashes oil forecast

Analyst Ratings Changes

A number of research firms have issued reports on BP. HSBC raised BP from a "reduce" rating to a "hold" rating and boosted their target price for the company from $35.10 to $45.30 in a research note on Friday, March 20th. Royal Bank Of Canada upgraded BP from a "sector perform" rating to an "outperform" rating in a research report on Monday, May 11th. Zacks Research downgraded shares of BP from a "strong-buy" rating to a "hold" rating in a report on Monday, May 25th. Weiss Ratings reiterated a "hold (c-)" rating on shares of BP in a report on Thursday, June 18th. Finally, Wells Fargo & Company raised their price objective on shares of BP from $39.00 to $54.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Two investment 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 assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $46.14.

Hedge Funds Weigh In On BP

Several hedge funds have recently modified their holdings of the stock. Confluence Investment Management LLC acquired a new position in BP during the second quarter valued at approximately $1,303,000. Parallel Advisors LLC increased its position in shares of BP by 8.6% during the 1st 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. Glenmede Trust Co. NA boosted its holdings in shares of BP by 140.1% in the 1st quarter. Glenmede Trust Co. NA now owns 85,516 shares of the oil and gas exploration company's stock valued at $4,019,000 after buying an additional 49,902 shares during the last quarter. Strategic Investment Advisors MI bought a new position in shares of BP in the first quarter valued at $251,000. Finally, Arkadios Wealth Advisors increased its holdings in BP by 15.2% during the first quarter. Arkadios Wealth Advisors now owns 69,950 shares of the oil and gas exploration company's stock worth $3,288,000 after buying an additional 9,239 shares during the last quarter. 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.

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