BP (BP) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research cut shares of BP (NYSE:BP) from a buy rating to a hold rating in a research note released on Friday morning.

According to Zacks, “BP has been gaining on the back of a strong portfolio of upstream projects. Since 2016, the integrated energy player has placed 17 key upstream developments online. The company plans to add eight key upstream projects through 2018. Ramp up in key developments have been backing the leading integrated energy player’s quarterly production volumes. Moreover, BP has a strong commitment in returning cash back to the shareholders through share buybacks and dividend payments. However, the oil spill incident of 2010 in the BP-operated Macondo Prospect is still affecting the company. Also, BP’s reliance on Russia and offshore activity worldwide increases uncertainty given sanctions and volatile oil prices. Moreover, the company’s balance sheet reflects weakness in it. Therefore, the stock warrants a cautious stance.”

Other analysts have also recently issued reports about the stock. Redburn Partners raised shares of BP from a neutral rating to a buy rating and set a $90.00 price objective for the company in a research note on Wednesday, October 3rd. Berenberg Bank initiated coverage on shares of BP in a research note on Tuesday, September 11th. They issued a buy rating for the company. HSBC raised shares of BP to a buy rating in a research note on Monday, July 30th. Goldman Sachs Group raised shares of BP from a buy rating to a conviction-buy rating in a research note on Thursday, August 9th. Finally, Santander raised shares of BP from an underperform rating to a hold rating in a research note on Friday, August 31st. Four investment analysts have rated the stock with a hold rating, nine have given a buy rating and two have given a strong buy rating to the stock. The company has a consensus rating of Buy and a consensus target price of $54.22.

BP traded down $0.32 during trading on Friday, hitting $40.84. The company’s stock had a trading volume of 6,196,315 shares, compared to its average volume of 8,072,911. The company has a current ratio of 1.22, a quick ratio of 0.91 and a debt-to-equity ratio of 0.53. BP has a one year low of $36.15 and a one year high of $47.83. The company has a market capitalization of $134.13 billion, a PE ratio of 21.72, a PEG ratio of 0.64 and a beta of 0.85.

BP (NYSE:BP) last announced its quarterly earnings data on Tuesday, October 30th. The oil and gas exploration company reported $1.15 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.86 by $0.29. The firm had revenue of $79.47 billion during the quarter, compared to analysts’ expectations of $75.31 billion. BP had a net margin of 2.91% and a return on equity of 11.14%. The company’s revenue for the quarter was up 32.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.09 earnings per share. Equities analysts forecast that BP will post 3.57 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Friday, December 21st. Investors of record on Friday, November 9th will be paid a dividend of $0.615 per share. The ex-dividend date of this dividend is Thursday, November 8th. This represents a $2.46 annualized dividend and a yield of 6.02%. BP’s payout ratio is 129.79%.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Capital One National Association bought a new position in shares of BP in the second quarter worth $210,000. Fox Run Management L.L.C. acquired a new stake in shares of BP in the second quarter valued at $609,000. Ballentine Partners LLC acquired a new stake in shares of BP in the second quarter valued at $210,000. GWM Advisors LLC lifted its holdings in shares of BP by 15.7% in the second quarter. GWM Advisors LLC now owns 14,051 shares of the oil and gas exploration company’s stock valued at $635,000 after buying an additional 1,908 shares during the period. Finally, Chicago Capital LLC lifted its holdings in shares of BP by 11.7% in the second quarter. Chicago Capital LLC now owns 41,999 shares of the oil and gas exploration company’s stock valued at $1,918,000 after buying an additional 4,398 shares during the period. 10.94% of the stock is owned by institutional investors.

About BP

BP p.l.c. engages in energy business worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. The Upstream segment is involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of liquefied natural gas (LNG), biogas, power and natural gas liquids (NGLs).

Featured Story: What is a Tariff?

Get a free copy of the Zacks research report on BP (BP)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for BP (NYSE:BP)

Receive News & Ratings for BP Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BP and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply