Wall Street Zen Upgrades Kosmos Energy (NYSE:KOS) to Strong-Buy

Key Points

• Wall Street Zen upgraded Kosmos Energy from “buy” to “strong-buy,” but broader analyst sentiment remains cautious: MarketBeat reports an average “Reduce” rating and a $2.53 price target.
• Kosmos opened at $2.79 and recently reported quarterly EPS of $0.11, beating the $0.09 consensus estimate, while revenue of $607.25 million exceeded expectations.
• Institutional investors own 95.33% of the company, although Kosmos continues to face financial pressure, including a negative net margin, negative return on equity and high debt-to-equity ratio of 3.58.

Kosmos Energy (NYSE:KOS - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other brokerages also recently weighed in on KOS. Weiss Ratings restated a "sell (d-)" rating on shares of Kosmos Energy in a research note on Monday, August 3rd. Stephens cut their price target on shares of Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating on the stock in a report on Tuesday, July 21st. Finally, Mizuho raised Kosmos Energy to a "strong sell" rating in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Kosmos Energy has an average rating of "Reduce" and an average price target of $2.53.

Kosmos Energy Stock Performance

KOS stock opened at $2.79 on Friday. The firm has a market cap of $1.66 billion, a price-to-earnings ratio of -2.34, a PEG ratio of 0.16 and a beta of 0.88. The firm has a 50-day simple moving average of $2.74 and a two-hundred day simple moving average of $2.68. Kosmos Energy has a one year low of $0.84 and a one year high of $3.34. The company has a debt-to-equity ratio of 3.58, a quick ratio of 0.38 and a current ratio of 0.59.

Kosmos Energy (NYSE:KOS - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $0.02. The business had revenue of $607.25 million for the quarter, compared to analysts' expectations of $483.23 million. Kosmos Energy had a negative net margin of 33.98% and a negative return on equity of 17.73%. On average, equities analysts forecast that Kosmos Energy will post 0.57 EPS for the current fiscal year.

Institutional Investors Weigh In On Kosmos Energy

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Swiss Life Asset Management Ltd grew its stake in shares of Kosmos Energy by 12.2% during the second quarter. Swiss Life Asset Management Ltd now owns 38,893 shares of the oil and gas producer's stock worth $82,000 after acquiring an additional 4,215 shares during the last quarter. Public Employees Retirement System of Ohio raised its position in shares of Kosmos Energy by 10.2% in the 1st quarter. Public Employees Retirement System of Ohio now owns 46,938 shares of the oil and gas producer's stock valued at $130,000 after purchasing an additional 4,361 shares during the last quarter. GTS Securities LLC raised its position in shares of Kosmos Energy by 23.8% in the 2nd quarter. GTS Securities LLC now owns 28,584 shares of the oil and gas producer's stock valued at $60,000 after purchasing an additional 5,499 shares during the last quarter. Pictet Asset Management Holding SA raised its position in shares of Kosmos Energy by 7.8% in the 2nd quarter. Pictet Asset Management Holding SA now owns 93,441 shares of the oil and gas producer's stock valued at $197,000 after purchasing an additional 6,757 shares during the last quarter. Finally, Sanders Morris Harris LLC raised its position in shares of Kosmos Energy by 9.9% in the 3rd quarter. Sanders Morris Harris LLC now owns 78,000 shares of the oil and gas producer's stock valued at $207,000 after purchasing an additional 7,000 shares during the last quarter. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

Kosmos Energy Company Profile

Kosmos Energy Ltd. NYSE: KOS is an independent international energy company engaged in the exploration, development and production of oil and natural gas. The company focuses primarily on offshore assets and seeks to develop hydrocarbon resources in selected emerging and frontier basins.

Kosmos has historically maintained a portfolio concentrated along the Atlantic margins of Africa. Its activities have included oil production and development projects offshore Ghana, including interests in the Jubilee and TEN fields, as well as natural gas exploration and development in the offshore Mauritania-Senegal basin.

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