NEW YORK (TheStreet) -- Shares of Penn Virginia Corp. (PVA) were gaining 9% to $4.85 on heavy trading volume Thursday following a report that oil giant BP (BP) is interested in acquiring the oil company.
BP recently offered to acquire Penn Virginia for $8 a share, according to Proactive Investors. Penn Virginia reportedly rejected BP's initial offer as it would undervalue the company, and is waiting for a bid of at least $10 a share.
Penn Virginia is engaged in the exploration, development and production of crude oil, natural gas liquids (NGL), and natural gas, primarily in the Eagle Ford Shale.
About 8.1 million shares of Penn Virginia were traded by 12:34 p.m. Thursday, above the company's average trading volume of about 3.5 million shares a day.
TheStreet Ratings team rates PENN VIRGINIA CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENN VIRGINIA CORP (PVA) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."