BP (NYSE:BP) Shares Gap Up - What's Next?

Key Points

• BP shares jumped 4.2%, opening at $46.04 versus the prior close of $44.51, and last traded near $46.11.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and a $48.44 average price target, despite some recent downgrades to Hold or Neutral.
• BP reported quarterly earnings of $2.22 per share, beating estimates, while revenue rose 106.1% year over year; the company also increased its quarterly dividend to $0.5196, implying a 4.5% yield.

BP p.l.c. (NYSE:BP - Get Free Report)'s stock price gapped up prior to trading on Thursday. The stock had previously closed at $44.51, but opened at $46.04. BP shares last traded at $46.1050, with a volume of 1,687,415 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on BP shares. Needham & Company LLC initiated coverage on shares of BP in a research report on Thursday, October 1st. They set a "hold" rating on the stock. Citigroup assumed coverage on shares of BP in a research note on Thursday, October 1st. They issued a "buy" rating for the company. BTIG Research cut shares of BP to a "neutral" rating in a research note on Thursday, October 1st. UBS Group lowered shares of BP from a "buy" rating to a "hold" rating in a report on Thursday, October 1st. Finally, Evercore raised BP to an "outperform" rating in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, BP has a consensus rating of "Moderate Buy" and a consensus target price of $48.44.

BP Stock Up 4.2%

The firm's 50 day moving average price is $43.95 and its 200-day moving average price is $43.48. The company has a current ratio of 1.27, a quick ratio of 0.95 and a debt-to-equity ratio of 0.69. The company has a market cap of $121.51 billion, a P/E ratio of 22.63, a price-to-earnings-growth ratio of 0.47 and a beta of 0.20.

BP (NYSE:BP - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The oil and gas exploration company reported $2.22 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.35. BP had a net margin of 2.49% and a return on equity of 16.63%. The business had revenue of $69.11 billion for the quarter, compared to analyst estimates of $57.89 billion. During the same period in the prior year, the business posted $0.90 earnings per share. BP's revenue was up 106.1% compared to the same quarter last year. As a group, equities research analysts expect that BP p.l.c. will post 7.28 EPS for the current year.

BP Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, August 14th were given a $0.5196 dividend. The ex-dividend date was Friday, August 14th. This represents a $2.08 annualized dividend and a dividend yield of 4.5%. This is an increase from BP's previous quarterly dividend of $0.4992. BP's dividend payout ratio is 100.49%.

Hedge Funds Weigh In On BP

Hedge funds have recently added to or reduced their stakes in the stock. Security National Bank of Sioux City Iowa IA acquired a new position in shares of BP during the 2nd quarter worth about $36,000. Financial Life Planners acquired a new stake in shares of BP in the 1st quarter valued at approximately $39,000. Gill Capital Partners LLC boosted its stake in BP by 53.2% during the 2nd quarter. Gill Capital Partners LLC now owns 1,376 shares of the oil and gas exploration company's stock worth $51,000 after acquiring an additional 478 shares during the last quarter. Community Bank N.A. grew its holdings in BP by 237.0% during the second quarter. Community Bank N.A. now owns 1,685 shares of the oil and gas exploration company's stock valued at $62,000 after purchasing an additional 1,185 shares during the period. Finally, Trust Co. of Vermont bought a new stake in BP in the second quarter valued at approximately $73,000. Institutional investors and hedge funds own 11.01% of the company's stock.

BP Company Profile

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.

BP has expanded its activities beyond traditional hydrocarbons to include lower-carbon businesses such as renewable power, bioenergy, electric-vehicle charging and hydrogen.

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