BP Target of Unusually Large Options Trading (NYSE:BP)

Key Points

• BP saw unusually heavy call-option activity, with investors purchasing 128,060 contracts—583% above the average volume of 18,739.
• Analyst sentiment remains mixed but leans positive: 12 analysts rate BP a Buy, nine Hold and two Sell, resulting in a consensus Hold rating and an average price target of $46.36.
• BP reported quarterly EPS of $2.22, exceeding estimates of $1.87, while revenue rose 106.1% year over year to $69.11 billion. The company also raised its quarterly dividend to $0.5196 per share, implying an annualized yield of about 4.8%.

BP p.l.c. (NYSE:BP - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Investors acquired 128,060 call options on the stock. This is an increase of 583% compared to the average volume of 18,739 call options.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. First Horizon Corp lifted its position in BP by 8.1% during the fourth quarter. First Horizon Corp now owns 3,933 shares of the oil and gas exploration company's stock valued at $137,000 after buying an additional 296 shares in the last quarter. HBK Sorce Advisory LLC raised its holdings in shares of BP by 2.9% during the 2nd quarter. HBK Sorce Advisory LLC now owns 11,424 shares of the oil and gas exploration company's stock valued at $422,000 after buying an additional 317 shares during the period. Versant Capital Management Inc lifted its position in BP by 4.8% during the 2nd quarter. Versant Capital Management Inc now owns 7,953 shares of the oil and gas exploration company's stock worth $294,000 after acquiring an additional 366 shares in the last quarter. United Community Bank boosted its holdings in BP by 1.3% in the 4th quarter. United Community Bank now owns 29,456 shares of the oil and gas exploration company's stock worth $1,023,000 after acquiring an additional 370 shares during the period. Finally, Atlas Brown Inc. grew its position in BP by 1.0% in the second quarter. Atlas Brown Inc. now owns 36,925 shares of the oil and gas exploration company's stock valued at $1,364,000 after acquiring an additional 370 shares in the last quarter. 11.01% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Freedom Capital raised shares of BP from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 6th. Wall Street Zen upgraded BP from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 18th. BNP Paribas Exane set a $57.00 target price on BP and gave the stock an "outperform" rating in a research note on Friday, April 17th. Scotiabank increased their price target on BP from $41.00 to $58.00 and gave the company a "sector outperform" rating in a research report on Wednesday, April 22nd. Finally, Mizuho set a $53.00 price objective on BP in a research note on Wednesday, August 5th. Twelve equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $46.36.

BP Stock Down 0.1%

Shares of BP stock traded down $0.04 during trading on Thursday, hitting $42.88. 6,207,510 shares of the stock were exchanged, compared to its average volume of 11,207,725. The stock has a market cap of $112.33 billion, a price-to-earnings ratio of 20.92, a price-to-earnings-growth ratio of 0.59 and a beta of 0.16. The firm's 50-day moving average price is $41.03 and its 200 day moving average price is $42.14. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.27 and a quick ratio of 0.95. BP has a 12-month low of $32.72 and a 12-month high of $48.27.

BP (NYSE:BP - Get Free Report) last announced its quarterly 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 return on equity of 16.63% and a net margin of 2.49%.The company had revenue of $69.11 billion during the quarter, compared to the consensus estimate of $57.89 billion. During the same period in the previous year, the business earned $0.90 EPS. BP's revenue for the quarter was up 106.1% on a year-over-year basis. As a group, analysts forecast that BP will post 5.98 earnings per share for the current fiscal year.

BP Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, August 14th will be issued a dividend of $0.5196 per share. The ex-dividend date of this dividend is Friday, August 14th. This is an increase from BP's previous quarterly dividend of $0.50. This represents a $2.08 dividend on an annualized basis and a yield of 4.8%. BP's dividend payout ratio is 96.59%.

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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