Kosmos Energy (NYSE:KOS) Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Kosmos Energy from “strong buy” to “buy,” while the broader analyst consensus remains “Reduce” with an average price target of $2.53.
• Kosmos reported quarterly EPS of $0.11, beating the $0.09 estimate, and revenue of $607.25 million versus expectations of $483.23 million. However, the company posted a negative net margin of 33.98% and negative return on equity.
• Shares opened at $2.74 after declining 3.5%; insiders sold $346,475 of stock over the past 90 days, while institutional investors own 95.33% of the company.

Kosmos Energy (NYSE:KOS - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Other research analysts have also issued reports about the stock. Royal Bank Of Canada lowered shares of Kosmos Energy to a "neutral" rating in a research note on Wednesday, May 27th. Stephens lowered their target price on shares of Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating for the company in a report on Tuesday, July 21st. Mizuho upgraded shares of Kosmos Energy to a "strong sell" rating in a report on Friday, July 31st. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Kosmos Energy in a research note on Monday, August 3rd. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, Kosmos Energy currently has a consensus rating of "Reduce" and an average target price of $2.53.

Kosmos Energy Trading Down 3.5%

Shares of KOS stock opened at $2.74 on Friday. The company has a market cap of $1.63 billion, a PE ratio of -2.30, a price-to-earnings-growth ratio of 0.19 and a beta of 0.73. Kosmos Energy has a 1 year low of $0.84 and a 1 year high of $3.34. The stock's 50 day simple moving average is $2.67 and its two-hundred day simple moving average is $2.67. The company has a debt-to-equity ratio of 3.58, a current ratio of 0.59 and a quick ratio of 0.38.

Kosmos Energy (NYSE:KOS - Get Free Report) last announced its earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 EPS for the quarter, topping analysts' consensus estimates of $0.09 by $0.02. Kosmos Energy had a negative return on equity of 17.73% and a negative net margin of 33.98%.The firm had revenue of $607.25 million during the quarter, compared to analysts' expectations of $483.23 million. Research analysts predict that Kosmos Energy will post 0.51 earnings per share for the current year.

Insider Activity at Kosmos Energy

In other Kosmos Energy news, CEO Andrew G. Inglis sold 85,935 shares of the company's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $2.05, for a total value of $176,166.75. Following the transaction, the chief executive officer directly owned 4,678,043 shares in the company, valued at $9,589,988.15. This represents a 1.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Josh R. Marion sold 24,969 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $2.05, for a total transaction of $51,186.45. Following the transaction, the senior vice president directly owned 233,404 shares in the company, valued at approximately $478,478.20. This trade represents a 9.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 169,012 shares of company stock worth $346,475 in the last 90 days. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Pallas Capital Advisors LLC purchased a new stake in shares of Kosmos Energy in the 2nd quarter worth $25,000. Proficio Capital Partners LLC purchased a new position in shares of Kosmos Energy during the second quarter valued at $27,000. Sanctuary Advisors LLC purchased a new position in shares of Kosmos Energy during the second quarter valued at $27,000. Vise Technologies Inc. bought a new stake in shares of Kosmos Energy in the second quarter valued at about $29,000. Finally, Kestra Advisory Services LLC bought a new stake in shares of Kosmos Energy in the first quarter valued at about $31,000. Institutional investors own 95.33% of the company's stock.

About Kosmos Energy

Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. The company focuses on finding, developing and producing oil and natural gas resources, with an emphasis on offshore assets in emerging and established energy regions.

Kosmos has historically concentrated its operations along the Atlantic margins of West Africa, including interests in Ghana, Equatorial Guinea and the waters offshore Mauritania and Senegal. Its activities have included exploration, field development and production of crude oil and natural gas, as well as participation in projects designed to supply natural gas for liquefied natural gas (LNG) production and domestic markets.

Founded in 2003, Kosmos was involved in the discovery and development of major petroleum resources offshore Ghana, including the Jubilee and TEN fields.

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