BP shares soared more than 6% on Monday's stock market trafe after news reports surfaced over the weekend that activist hedge fund Elliott Management has built a stake in the U.K. oil major.
The size of Elliott Management's stake in BP is not known at this time, according to The Wall Street Journal. However, the hedge fund, known for shaking up companies by dismissing management and spinning off business segments to increase shareholder value, reportedly is pressuring BP to make serious changes to reverse its fortunes.
BP stock jumped 6.7% to 34.42 during Monday's stock market trade after gaining nearly 4% to 32.27 last week. The stock reclaimed its 200-day line for the first time since July 2024.
Elliott's BP stake was first reported by Bloomberg.
Elliott Stake: BP Earnings
Meanwhile, the news of the Elliott stake comes just days before the oil major reports fourth-quarter earnings and revenue early on Tuesday. Analysts expect BP earnings to tumble 56% with sales declining nearly 9%.
Last month, BP said it would cut about 4,700 jobs, about 5% of its global workforce, and warned that disappointing refining margins and other factors could leave as much as a $300-million hole in fourth-quarter earnings.
BP is also scheduled to give a strategy update to investors on Feb. 26.
Shares of BP have lagged behind U.S. supermajors Chevron and Exxon Mobil as well as underperforming compared to Shell.
BP's market capitalization currently sits at $87.78 billion. For perspective, Exxon's market cap is $478.58 billion and Shell has a $206.12 billion market cap. BP sits sixth in market cap in IBD's Oil & Gas-Integrated industry group.
BP stock has a 49 Composite Rating out of a best-possible 99. Shares also have a 38 Relative Strength Rating and a 59 EPS Rating.
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