BP (NYSE:BP) Cut to Sell at Melius Research

BP (NYSE:BP) was downgraded by research analysts at Melius Research from a “buy” rating to a “sell” rating in a research report issued to clients and investors on Wednesday. They presently have a $31.00 price target on the oil and gas exploration company’s stock. Melius Research’s price target suggests a potential downside of 16.08% from the stock’s previous close.

Several other research analysts have also recently weighed in on the stock. Evercore set a $38.00 price objective on shares of BP and gave the stock an “in-line” rating in a research report on Tuesday, January 6th. Citigroup reissued a “buy” rating on shares of BP in a research note on Monday, November 3rd. Piper Sandler reaffirmed a “neutral” rating on shares of BP in a research note on Wednesday. Santander upgraded BP to an “outperform” rating in a research report on Monday, November 3rd. Finally, Scotiabank set a $41.00 price objective on BP in a report on Friday, January 16th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $37.23.

BP Stock Performance

BP stock opened at $36.94 on Wednesday. The stock has a 50-day simple moving average of $35.78 and a 200 day simple moving average of $35.05. The stock has a market capitalization of $96.30 billion, a price-to-earnings ratio of 63.69, a P/E/G ratio of 2.18 and a beta of 0.33. The company has a quick ratio of 0.89, a current ratio of 1.19 and a debt-to-equity ratio of 0.70. BP has a 12-month low of $25.22 and a 12-month high of $39.51.

BP (NYSE:BP) last posted its quarterly earnings data on Tuesday, February 10th. The oil and gas exploration company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.57 by $0.03. BP had a net margin of 0.79% and a return on equity of 9.07%. The firm had revenue of $47.38 billion during the quarter, compared to analysts’ expectations of $42.19 billion. During the same quarter last year, the company posted $0.44 EPS. The company’s quarterly revenue was up 3.6% compared to the same quarter last year. On average, research analysts anticipate that BP will post 3.53 earnings per share for the current fiscal year.

Institutional Trading of BP

Hedge funds have recently modified their holdings of the company. Strategic Advocates LLC acquired a new position in BP during the third quarter valued at approximately $25,000. Heartwood Wealth Advisors LLC bought a new position in shares of BP during the third quarter worth $26,000. Twin Peaks Wealth Advisors LLC acquired a new position in shares of BP in the 2nd quarter valued at $27,000. YANKCOM Partnership increased its position in shares of BP by 1,068.3% in the 4th quarter. YANKCOM Partnership now owns 958 shares of the oil and gas exploration company’s stock valued at $33,000 after buying an additional 876 shares in the last quarter. Finally, Triumph Capital Management acquired a new stake in BP during the 3rd quarter worth $43,000. 11.01% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting BP

Here are the key news stories impacting BP this week:

• Positive Sentiment: Underlying Q4 operating results showed resilience: EPS beat estimates on higher oil production and stronger refining margins, and management highlighted solid cash?flow trends that support deleveraging efforts. BP Q4 Earnings Beat on Higher Oil Production
• Positive Sentiment: BP is pursuing an OFAC license to develop a Venezuela/Trinidad gas field — a successful approval could add production optionality and medium?term reserves. BP seeks OFAC license for Venezuela/Trinidad gas field
• Positive Sentiment: Interest from buyers for BP’s Gelsenkirchen refinery could free up cash and simplify operations if a sale proceeds. Gelsenkirchen refinery attracts buyer interest
• Positive Sentiment: Short interest fell sharply in January (down ~34% vs. mid?January), reducing near?term short?sell pressure. (Market data)
• Neutral Sentiment: BP reported an adjusted underlying replacement?cost profit roughly in line with analyst expectations, suggesting operational performance wasn’t a major surprise. BP reports fourth-quarter 2025 profits in line
• Neutral Sentiment: Management signaled intensified cost?cutting to offset margin pressure — could improve margins over time but may take quarters to materialize. BP steps up cost cutting as profits slide
• Negative Sentiment: BP suspended its share buyback program and said excess cash will instead be used to strengthen the balance sheet — a blow to dividend?seeking and buyback?driven investors and a key reason for the share price weakness. BP Suspends Share Buybacks as Profit Slumps
• Negative Sentiment: Annual reported net profit plunged (headlines cite an ~86% drop) and the quarter included large inventory losses and roughly $4bn of post?tax impairments tied to transition?related assets — these charges hit headline earnings and investor confidence. BP Announces 86% Drop in Annual Net Profit
• Negative Sentiment: BP reported a sizable Q4 headline loss (cited ~$3.4bn) driven by impairments and inventory accounting, reinforcing concerns that weaker oil prices are pressuring earnings. BP halts buy-backs to preserve cash after $3.4bn Q4 loss
• Negative Sentiment: Market reaction: multiple outlets report the stock fell after the buyback suspension and earnings release, reflecting investor disappointment and a re?rating of payout expectations. BP Stock Drops 5% as Company Suspends Buyback

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.