BP (BP) stock was up on Monday after the company announced a massive oil find off the coast of Brazil. The company made its largest oil and gas discovery in 25 years after it successfully dug a well in the Bumerangue oil field. However, it’s still too early for BP to know the exact size or quality of the resources in this area.
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This is a huge win for BP, as it owns 100% of the licensing rights for the field. The terms of this deal will also have it pay 5.9% of its profits to the Brazilian government after it has recovered the costs associated with the area. This new discovery happened in a year when BP has decided to double down on oil exploration, including nine other discoveries this year.
In related news, BP is moving forward with cost-cutting measures alongside increased pressure from activist investor Elliott Management. It will reveal progress in its $5 billion cost-saving plan when it reports earnings tomorrow. Elliott Management has built a roughly 5% stake in BP and wants the company to increase its cost-cutting target to $10 billion.
BP Stock Movement Today
BP stock was up 1.7% in pre-market trading on Monday, following a 1.24% drop on Friday. The company’s shares have rallied 10.67% year-to-date but have remained down 3.76% over the past 12 months. Roughly 180,000 shares have traded this morning, compared to a three-month daily average of about 9.83 million units.
Is BP Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for BP is Hold, based on three Buy, five Hold, and one Sell rating over the past three months. With that comes an average BP stock price target of $32.50, representing a potential 2.36% upside for the shares.
