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

Key Points

• BP options activity jumped: Traders purchased 29,247 call options, 51% above the average volume of 19,376. BP shares rose $0.53 to $42.68, with a market capitalization of approximately $111.8 billion.
• Recent financial performance was stronger than expected: BP reported quarterly EPS of $2.22 versus the $1.87 analyst consensus and revenue of $69.11 billion, up 106.1% year over year.
• BP raised its dividend and retains a consensus “Hold” rating: The quarterly dividend increased to $0.5196 per share, representing a 4.9% annualized yield. Analysts’ consensus price target is $46.36, while institutional ownership stands at 11.01%.

BP p.l.c. (NYSE:BP - Get Free Report) saw unusually large options trading activity on Monday. Stock traders purchased 29,247 call options on the company. This represents an increase of 51% compared to the average volume of 19,376 call options.

BP Price Performance

Shares of BP stock traded up $0.53 on Monday, hitting $42.68. The company's stock had a trading volume of 8,669,119 shares, compared to its average volume of 11,077,495. The company has a market capitalization of $111.80 billion, a P/E ratio of 20.82, a price-to-earnings-growth ratio of 0.57 and a beta of 0.15. BP has a 52-week low of $32.72 and a 52-week high of $48.27. The firm has a fifty day moving average price of $41.38 and a 200-day moving average price of $42.54. The company has a quick ratio of 0.95, a current ratio of 1.27 and a debt-to-equity ratio of 0.69.

BP (NYSE:BP - Get Free Report) last released its earnings results on Monday, August 3rd. The oil and gas exploration company reported $2.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.87 by $0.35. The company had revenue of $69.11 billion for the quarter, compared to analyst estimates of $57.89 billion. BP had a net margin of 2.49% and a return on equity of 16.63%. The firm's quarterly revenue was up 106.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.90 EPS. On average, equities research analysts expect that BP will post 6.08 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 paid a dividend of $0.5196 per share. This is a boost from BP's previous quarterly dividend of $0.50. This represents a $2.08 dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date is Friday, August 14th. BP's payout ratio is presently 100.49%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on BP. Weiss Ratings raised BP from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, August 5th. Freedom Capital raised BP from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 6th. Argus upgraded BP from a "hold" rating to a "buy" rating and set a $50.00 price objective on the stock in a report on Monday, May 11th. Mizuho set a $53.00 target price on BP in a research note on Wednesday, August 5th. Finally, TD Cowen increased their price target on shares of BP from $40.00 to $41.00 and gave the company a "hold" rating in a research note on Thursday, July 16th. Twelve investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $46.36.

Institutional Investors Weigh In On BP

Several hedge funds have recently modified their holdings of the stock. Corient Private Wealth LP boosted its stake in shares of BP by 9.1% in the second quarter. Corient Private Wealth LP now owns 147,398 shares of the oil and gas exploration company's stock valued at $5,447,000 after purchasing an additional 12,233 shares during the period. Readystate Asset Management LP lifted its holdings in BP by 322.4% in the 2nd quarter. Readystate Asset Management LP now owns 619,670 shares of the oil and gas exploration company's stock worth $22,897,000 after buying an additional 472,974 shares in the last quarter. Ameritas Advisory Services LLC boosted its position in BP by 55.5% in the 2nd quarter. Ameritas Advisory Services LLC now owns 28,955 shares of the oil and gas exploration company's stock valued at $1,070,000 after buying an additional 10,330 shares during the last quarter. HB Wealth Management LLC grew its stake in shares of BP by 7.7% during the second quarter. HB Wealth Management LLC now owns 41,212 shares of the oil and gas exploration company's stock valued at $1,523,000 after acquiring an additional 2,932 shares in the last quarter. Finally, Shah Wealth Advisors LLC purchased a new stake in shares of BP during the second quarter worth about $289,000. 11.01% of the stock is currently owned by hedge funds and other institutional investors.

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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