Kosmos Energy Ltd. (NYSE:KOS) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts hold a consensus “Reduce” rating on Kosmos Energy, with four sell, three hold, and two buy recommendations. The average 12-month price target is $2.53, below the reported opening price of $2.94.
• Kosmos exceeded quarterly expectations, reporting EPS of $0.11 versus the $0.09 consensus and revenue of $607.25 million versus $483.23 million expected. However, the company posted a negative net margin of 33.98% and negative return on equity of 17.73%.
• Insiders sold 169,012 shares worth about $346,475 over the past 90 days, though the sales were made under pre-arranged plans to cover tax obligations. Institutional investors and hedge funds own a substantial 95.33% of the stock.

Shares of Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) have earned a consensus recommendation of "Reduce" from the nine research firms that are covering the stock, MarketBeat reports. Four investment analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating on the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $2.5286.

A number of equities analysts have recently weighed in on the stock. Wall Street Zen raised shares of Kosmos Energy from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Weiss Ratings restated a "sell (d-)" rating on shares of Kosmos Energy in a research report on Monday, August 3rd. Mizuho raised Kosmos Energy to a "strong sell" rating in a research note on Friday, July 31st. Stephens reduced their target price on 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, Royal Bank Of Canada cut Kosmos Energy to a "neutral" rating in a research note on Wednesday, May 27th.

Kosmos Energy Stock Performance

Shares of NYSE:KOS opened at $2.94 on Thursday. The firm's 50 day simple moving average is $2.49 and its 200 day simple moving average is $2.60. Kosmos Energy has a fifty-two week low of $0.84 and a fifty-two week high of $3.34. The company has a market capitalization of $1.75 billion, a price-to-earnings ratio of -2.47, a P/E/G ratio of 0.22 and a beta of 0.73. 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 issued its quarterly earnings data on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.09 by $0.02. Kosmos Energy had a negative net margin of 33.98% and a negative return on equity of 17.73%. The firm had revenue of $607.25 million during the quarter, compared to analysts' expectations of $483.23 million. As a group, sell-side analysts forecast that Kosmos Energy will post 0.45 earnings per share for the current year.

Insider Activity

In other news, CEO Andrew G. Inglis sold 85,935 shares of Kosmos Energy stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $2.05, for a total transaction of $176,166.75. Following the transaction, the chief executive officer owned 4,678,043 shares in the company, valued at $9,589,988.15. The trade was a 1.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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, CFO Nealesh D. Shah sold 45,980 shares of the company's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $2.05, for a total transaction of $94,259.00. Following the completion of the transaction, the chief financial officer owned 1,935,410 shares of the company's stock, valued at $3,967,590.50. This trade represents a 2.32% decrease in their position. 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 have sold 169,012 shares of company stock worth $346,475 in the last 90 days. Corporate insiders own 1.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Swiss Life Asset Management Ltd raised its position in Kosmos Energy by 12.2% in the 2nd quarter. Swiss Life Asset Management Ltd now owns 38,893 shares of the oil and gas producer's stock valued at $82,000 after buying an additional 4,215 shares during the last quarter. Public Employees Retirement System of Ohio boosted its position in Kosmos Energy by 10.2% during the 1st quarter. Public Employees Retirement System of Ohio now owns 46,938 shares of the oil and gas producer's stock worth $130,000 after acquiring an additional 4,361 shares during the last quarter. GTS Securities LLC boosted its position in Kosmos Energy by 23.8% during the 2nd quarter. GTS Securities LLC now owns 28,584 shares of the oil and gas producer's stock worth $60,000 after acquiring an additional 5,499 shares during the last quarter. Pictet Asset Management Holding SA grew its stake in shares of Kosmos Energy by 7.8% during the 2nd quarter. Pictet Asset Management Holding SA now owns 93,441 shares of the oil and gas producer's stock worth $197,000 after acquiring an additional 6,757 shares in the last quarter. Finally, Parallel Advisors LLC grew its stake in shares of Kosmos Energy by 41.0% during the 3rd quarter. Parallel Advisors LLC now owns 24,634 shares of the oil and gas producer's stock worth $41,000 after acquiring an additional 7,169 shares in the last quarter. 95.33% of the stock is owned by institutional investors and hedge funds.

Kosmos Energy Company Profile

Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. Since its founding in 2003, the company has focused on identifying and developing hydrocarbon reserves in frontier and emerging basins around the world. Kosmos combines geological and geophysical expertise with a disciplined approach to acreage acquisition and partner selection to pursue high‐impact offshore exploration opportunities.

The company's portfolio is anchored by assets in West Africa and the Gulf of Mexico.

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