Bank of America Corp DE Makes New Investment in Kosmos Energy Ltd. $KOS

Key Points

• Bank of America initiated a position in Kosmos Energy, purchasing 2.93 million shares worth approximately $6.2 million, or about 0.49% of the company. Other institutional investors also increased their holdings, with institutions collectively owning 95.33% of KOS.
• Kosmos Energy exceeded quarterly expectations, reporting $0.11 in EPS versus a $0.09 estimate and revenue of $607.25 million against expectations of $483.23 million. However, the company continues to report negative net margins and return on equity, alongside elevated debt.
• Analyst sentiment remains cautious: KOS has an average “Reduce” rating and a $2.53 price target, while insiders sold shares primarily to cover tax obligations under pre-arranged trading plans.

Bank of America Corp DE purchased a new position in shares of Kosmos Energy Ltd. (NYSE:KOS - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 2,932,515 shares of the oil and gas producer's stock, valued at approximately $6,188,000. Bank of America Corp DE owned about 0.49% of Kosmos Energy at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in KOS. Swiss Life Asset Management Ltd raised its position in Kosmos Energy by 12.2% in the second quarter. Swiss Life Asset Management Ltd now owns 38,893 shares of the oil and gas producer's stock valued at $82,000 after purchasing an additional 4,215 shares during the period. 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 in the last quarter. Pictet Asset Management Holding SA boosted its stake in 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 valued at $197,000 after acquiring an additional 6,757 shares during the last quarter. SmartHarvest Portfolios LLC boosted its stake in Kosmos Energy by 73.0% during the 1st quarter. SmartHarvest Portfolios LLC now owns 23,814 shares of the oil and gas producer's stock valued at $66,000 after purchasing an additional 10,050 shares during the period. Finally, Kestra Advisory Services LLC bought a new stake in shares of Kosmos Energy during the first quarter valued at approximately $31,000. Hedge funds and other institutional investors own 95.33% of the company's stock.

Insider Buying and Selling

In related news, CFO Nealesh Shah sold 45,980 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 $94,259.00. Following the completion of the transaction, the chief financial officer owned 1,935,410 shares in the company, valued at $3,967,590.50. This trade represents a 2.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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, CEO Andrew Inglis sold 85,935 shares of Kosmos Energy stock in a transaction on 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 of the company's stock, valued at approximately $9,589,988.15. The trade was a 1.80% 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 company insiders.

Kosmos Energy Trading Up 0.4%

Shares of KOS opened at $2.66 on Monday. The stock's 50-day moving average price is $2.70 and its 200 day moving average price is $2.68. The company has a quick ratio of 0.38, a current ratio of 0.59 and a debt-to-equity ratio of 3.58. The firm has a market capitalization of $1.58 billion, a price-to-earnings ratio of -2.24, a P/E/G ratio of 0.17 and a beta of 0.73. Kosmos Energy Ltd. has a 12-month low of $0.84 and a 12-month high of $3.34.

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

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Mizuho raised shares of Kosmos Energy to a "strong sell" rating in a report on Friday, July 31st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Kosmos Energy in a report on Monday, August 3rd. Wall Street Zen lowered shares of Kosmos Energy from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 19th. Finally, Stephens lowered their target price on Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating on the stock in a research note on Tuesday, July 21st. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and an average price target of $2.53.

Kosmos Energy Company Profile

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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