Oversold shares of BP (BP) are bouncing back.
All after the company announced plans to boost shareholder returns. Not only did it announce intentions to execute a$1.75 billion buyback ahead of first quarter earnings, it also said it was committed to a $3.5 billion buyback plan in the first half of the year. In addition, it increased its dividend to $0.727 for the last quarter of 2023, a 10% increase year over year.
Better, “There is so much value in BP that is not being priced in,” says Bernstein analyst Oswald Clint, who has an Outperform rating on the stock and a price target of $55. He did a sum-of-the-parts analysis that came up with a value that’s about double the current stock price, as noted by Barron’s.
Technically, BP has been consolidating around $34, $35 a share for a few months now. With the latest, bullish news, we’d like to see it refill its bearish gap at around $38.