BP Sees Unusually High Options Volume (NYSE:BP)

Key Points

• BP call-option trading surged: Traders bought 31,614 calls, about 76% above the average volume of 17,959.
• Quarterly results beat expectations: BP reported EPS of $3.26 versus the $2.66 consensus and revenue of $68.4 billion versus $63.14 billion expected.
• BP announced a quarterly dividend of $0.5196 per share, equivalent to an annualized yield of about 4.7%. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $49.90.

BP p.l.c. (NYSE:BP - Get Free Report) was the target of some unusual options trading on Tuesday. Stock traders acquired 31,614 call options on the company. This represents an increase of approximately 76% compared to the average volume of 17,959 call options.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Edgestream Partners L.P. purchased a new stake in shares of BP during the 3rd quarter valued at about $276,000. First Financial Bankshares Inc purchased a new stake in BP in the third quarter worth approximately $226,000. Silver Oak Securities Incorporated grew its position in BP by 36.8% in the 3rd quarter. Silver Oak Securities Incorporated now owns 10,888 shares of the oil and gas exploration company's stock worth $485,000 after purchasing an additional 2,929 shares during the period. Carlson Capital L.P. bought a new stake in BP in the 3rd quarter worth approximately $14,503,000. Finally, Bessemer Group Inc. raised its stake in BP by 13.3% during the 3rd quarter. Bessemer Group Inc. now owns 18,531 shares of the oil and gas exploration company's stock valued at $816,000 after buying an additional 2,182 shares during the last quarter. Institutional investors own 11.01% of the company's stock.

BP Trading Down 0.3%

NYSE BP traded down $0.15 during trading on Tuesday, hitting $44.44. 4,339,992 shares of the company's stock traded hands, compared to its average volume of 10,652,692. The stock has a fifty day moving average of $46.29 and a two-hundred day moving average of $43.21. BP has a 12-month low of $33.22 and a 12-month high of $51.49. The firm has a market cap of $116.41 billion, a P/E ratio of 13.08, a PEG ratio of 0.35 and a beta of 0.16. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.29 and a quick ratio of 0.95.

BP (NYSE:BP - Get Free Report) last released its quarterly earnings data on Friday, October 30th. The oil and gas exploration company reported $3.26 EPS for the quarter, topping the consensus estimate of $2.66 by $0.60. The firm had revenue of $68.40 billion for the quarter, compared to the consensus estimate of $63.14 billion. BP had a return on equity of 24.67% and a net margin of 3.74%. The company's quarterly revenue was up 41.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.85 earnings per share. As a group, sell-side analysts expect that BP will post 8.37 EPS for the current year.

BP Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Friday, November 13th will be given a $0.5196 dividend. The ex-dividend date is Friday, November 13th. This represents a $2.08 annualized dividend and a yield of 4.7%. BP's payout ratio is presently 60.59%.

More BP News

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP completed a roughly $6 billion Castrol stake sale, advancing its portfolio simplification and providing funds to reduce financial obligations. The balance-sheet benefit may be tempered by the loss of part of a business asset. BP Completes $6B Castrol Stake Sale
• Neutral Sentiment: BP’s Namibian farm-in deal has completed, clearing the way for a major seismic exploration program under BP’s operatorship across three licenses. This creates potential for future discoveries, but seismic work is an early, costly step and offers no guarantee of commercial reserves. BP to launch seismic shoot in Namibia
• Negative Sentiment: BP is exiting Indonesia’s fuel-retail market by selling its 49.9% stake in the BP-AKR venture to partner AKR, reportedly for $14.2 million. The exit may simplify the portfolio, but it also gives up a retail-market presence and the reported proceeds are modest relative to BP’s broader financial needs. BP sells stake in Indonesian petrol station venture

Wall Street Analysts Forecast Growth

BP has been the subject of a number of research reports. Zacks Research upgraded BP from a "hold" rating to a "strong-buy" rating in a report on Tuesday, September 8th. Evercore raised BP to an "outperform" rating in a report on Monday, October 5th. Wells Fargo & Company boosted their target price on BP from $57.00 to $63.00 and gave the stock an "overweight" rating in a research report on Monday, November 2nd. Needham & Company LLC began coverage on BP in a research note on Thursday, October 1st. They issued a "hold" rating for the company. Finally, Wall Street Zen raised shares of BP from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $49.90.

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.

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