Short interest in BP
BP (BP) has witnessed a fall in its short interest (the percentage of outstanding shares) from 0.6% at the end of May to its current level of 0.2%. This trend typically shows that the bearish sentiment for the stock has decreased. During the same period, BP’s stock price has risen 4.3%.
Why the change in sentiment?
The change in sentiment for BP stock could be attributed to BP’s upstream activities during this period. During this timeframe, BP acquired a gas discovery in Trinidad, formed a strategic alliance for its gas portfolio with Rosneft, expanded its partnership with Reliance Industries, and rechurned its exploration portfolio.
BP announced its 2Q17 earnings, which surpassed estimates. In its earnings report, BP revealed its plan to balance its cash flows at $35–$40 per barrel of crude oil by 2021.
Due to the diminishing impact of Hurricane Harvey, a rise in oil prices has boosted BP stock. BP announced that its midstream IPO would hit the market in 4Q17, subject to market conditions. BP also stated that it had started six of its seven scheduled mega upstream projects during the year.
Peers’ short interest levels
Since the end of May, BP’s peers Total (TOT), Petrobras (PBR), and PetroChina (PTR) also witnessed falling short interest 0.02%, 0.29%, and 0.02%, respectively. Currently, TOT, PBR, and PTR have short interest levels of 0.17%, 0.85%, and 0.07%, respectively.
During the same period, TOT and PBR stock rose 2.3% and 18.9%, respectively, but PTR stock price has fallen 6.1%.
In the next article, we’ll see what BP’s PEG ratio reveals.