Insiders Are Selling Big on BP p.l.c. (BP)

The 12-month median price target for BP p.l.c. (BP) assigned by the analysts stands at $47.88, which represents a return potential of 18.99 percent when compared to the closing price of the stock of $40.24 on Friday, January 11. The lowest price target for the stock is $37.57 — slightly more than -6.64 percent from BP’s current share price. The stock will probably climb 22.14 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $58-month high price target. This represents a whopping 44.14 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 56.64 on daily chart, which may remain a cause for concern. If the price breaks below $39.89 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $40.42 mark may result into a pull-back move towards $40.59 level. The stock is currently hovering around the first support level of $40.07. Below this, the next support is placed in the zone of $39.89. Till the time, the BP stock trades above this level, bulls have nothing to fear.

Shares of BP p.l.c. (BP) are trading at a P/E ratio of 33.09 times earnings reported for the past 12 months. The industry BP operates in has an average P/E of 22.68. Its P/E ratio went as low as 6.58X and as high as 1029.75 over the 5-year span. Further, it is sporting a 0.47 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.11. 15.4 percent is the gross profit margin for BP p.l.c. and operating margin sits at 4.5 percent. Along with this, the net profit margin is 3 percent.

On 11th of January, BP p.l.c. (NYSE:BP) shares ended lower after a volatile session. The shares dropped -0.46 points or -1.13 percent at $40.24 with a light trade volume of 5.744 million shares. After opening the session at $40.22, the shares went as high as $40.42 and as low as $40.07, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $137 billion and now has 3.39 billion shares outstanding. BP p.l.c. (BP) stock has gained 2.97 percent of market value in 21 trading days.

In last reported earnings results, BP earned $1.14 per share, better than the $0.85, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $79.5B, worse than the $79.9B analysts expected. Earnings are estimated to increase by 95.7 percent this year, -4.21 percent next year and continue to increase by 31.5 percent annually for the next 5 years. Investors will get their next glimpse of BP’s Q4 earnings on February 05. Analysts are forecasting revenue to climb 9.6 percent to $74.3B in the next fiscal quarter, while earnings are seen soaring by nearly 25.76 percent to $0.83 per share. History has shown that shares in BP p.l.c. have gone up on 15 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings.

BP stock has a trailing 3-year beta of 0.8, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.88 a share in the trailing twelve months. The stock’s value has surged 6.12 percent year to date (YTD) against a decline of -6.2 percent in 12 month’s time. The company’s shares still trade -15.87 percent away from its 1-year high of $47.83 and 11.31 percent up from 52-week low of $36.15. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.