Why BP Prudhoe Bay Royalty Trust (BPT) Is An Unattractive Stock Today

BP Prudhoe Bay Royalty Trust (NYSE:BPT) is a stock to watch today. At current price of $8.09, the shares have already lost -1.23 points (-13.2% lower) from its previous close of $9.32. The stock sets an active trading volume day with a reported 312067 contracts so far this session. BPT shares had a relatively better volume day versus average trading capacity of 309.78 thousand shares, but with a 21.4 million float and a 9.65% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for BPT stock indicates that the average analyst price target is $6 per share. This means the stock has a potential decrease of -25.83% from where the BPT share price has been trading recently.

During the recent trading session for BP Prudhoe Bay Royalty Trust (NYSE:BPT), the company witnessed their stock drop by $-0.08 over a week and surge $1.52 from the price 20 days ago. When compared to their established 52-week high of $28.19, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 04/04/19. The recent low of $5.6 stood for a -71.3% since 11/21/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of -0.16 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for BP Prudhoe Bay Royalty Trust, the two-week RSI stands at 53.97. This figure suggests that BPT stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current BPT readings is similarly very revealing as it has a stochastic reading of 83.7% at this stage. This figure means that BPT share price today is being oversold.

Technical chart claims that BP Prudhoe Bay Royalty Trust (BPT) would settle between $9.46/share to $9.6/share level. However, if the stock price goes below the $9.2 mark, then the market for BP Prudhoe Bay Royalty Trust becomes much weaker. If that happens, the stock price might even plunge as low as $9.08 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.25. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Citigroup lowered their recommendation on shares of BPT from Hold to Sell in their opinion released on February 05. AG Edwards analysts bumped their rating on BP Prudhoe Bay Royalty Trust (NYSE:BPT) stock from Sell to Hold in a separate flash note issued to investors on February 23.

Moving on, BPT stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 2.8 while for the average stock in the same group, the multiple is 13.3. BP Prudhoe Bay Royalty Trust current P/B ratio of 197.9 means it is trading at a premium against its industry’s 1.6.