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 billon 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.

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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.

Sincerely,

Ian Cooper