GKP Share Price Brief:
Gulf Keystone is an independent gas and oil production and exploration company. Founded by private equity firms from Kuwait, UAE, and the United States. The firm operates in Iraq’s Kurdistan region; it operates the world-class oil field of Shaikan. In 2004, Gulf Keystone Petroleum got listed in the market of the London Stock Exchange.
GKP Share Price Volatility For 2021
The 10-year GKP history report reflects the rapid volatility of the company’s share price. Over this period, GKP shares have yielded high returns and losses in equal measure. In 2017, the plan to improve its oil price outlook led to a rise in GKP share price valuation by over 200%.
Yet, the larger part of 2017 saw a significant decline in GKP stock valuation. In 2012, investors and traders experienced one of the best investment cycles. As the GKP stocks spiked to the top of the company’s share price ladder.
This run in the Gulf Keystone share price poses serious threats to some traders. In contrast, it is a great investment opportunity for others.
The 2020 GKP Share Price Run
In 2020 Q1, long-term investors who held GKP stocks for 5 years saw their investments tank to 98%. Followed paper by the oil producer on the sharp drop in profits. In comparison, the drop in oil prices weighed on its performance.
In response to the oil prices, Gulf Keystone took measures supporting liquidity. For example, the company announced suspending guidance for 2020 and stopping any expansion.
GKP pursues to navigate the challenges posed by low oil price levels. Limiting its capital investments and lowering the cost of its production base. Also, by maintaining a strong balance sheet.
Following the COVID-19 pandemic declaration by the World Health Organization (WHO) in mid-March. Gulf Keystone share price has increased. The sudden growth in the stocks left investors wondering about the next decision.
The run in the GKP share price made it hard for traders to assess their strengths and weaknesses. Thus, investors must carry out fundamental and technical analyses before trading GKP shares.
How long Will the Run Last?
G.K.P stocks’ experts suggest that the company’s share price is likely to continue performing well in the next year. Based on consensus advice of ‘Buy’ by four Wall Street analysts. The Gulf Keystone shares (LSE GKP) have received 4 Buy ratings.
This means that stock analysts are quite positive about the performance and outlook of the G.K.P stocks. But what is the implication of this analytical review? Such reports by analysts can act as useful guides on what investors should expect soon. But that is not all that there is for a long-term investor.
There are plenty of factors surrounding the G.K.P share price’s performance. Investors must not rely on a consensus recommendation by analysts to decide. So how can you tell whether the run will last for long? Here are some fundamental aspects to take into consideration.
GKP Share Price 2021 Targets
When forecasting stocks’ trends, the price targets are more useful than analysts. Because price targets represent models that trades consider valued, unlike opinion based ratings. Analysts have released 12-month price targets for the GKP stocks (GKP LSE).
According to their projections, G.K.P’s share price will range between GBX 210 and GBX 392 in the next one year. On average, analysts expect the traded price of G.K.P stocks to reach GBX 301. This is a potential 178.2% rise from the current share price. This means that there is a high likelihood of the price run lasting for over 12 months.
The attention of media on specific stocks has a significant impact on the stock’s share price. For the past one week, GKP stocks have been trending in every LSE discussion board. , a report by InfoTrie Sentiment shows a news impact of 2.7 ratings on GKP stocks.
InfoTrie is a research group that analyses over 6000 sources of news. Helping to determine the sentiment of news coverage of public companies. The research group employs a scale of -5 to 5 to rank the news favorability of a stock.
With a rating of 2.7 on the firm’s scale, news coverage has not affected GKP’s share price. Meaning that the stocks won’t suffer from news coverage in the next couple of weeks. Suggesting a continued run in the share price.
Declaration of Dividend Yield
Declaration of a stock’s dividend yield tends to trigger a spike in its share price. In September last year, the dividend declaration by G.K.P indicated a rise in the yield per share to GBX 0.15 from GBX 0.07. The new yield stands at 4.94%, which is likely to cause growth in the G.K.P stock prices in the foreseeable future. Investors can expect the price run to continue for the next few quarters.
GKP Share Price Summary
GKP stocks faced irregular volatility last decade. Although, traders using these assets for diversification have managed to cushion their investments.
Gulf Keystone share price’s recent trends suggest a better future. Which might help both long-term and short-term investors. Factors such as the declaration of dividend yield, news coverage, and price targets. These points to a continued rise in its share price.
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Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
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