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

Key Points

• Analysts are bearish on Kosmos Energy, with the stock receiving an average consensus rating of “Reduce” from nine brokerages. The average 12-month price target is about $2.44, and recent reports included downgrades from Goldman Sachs and RBC.
• Insiders have been selling shares, including Director Roy A. Franklin and Director Steven Sterin, both of whom reduced their holdings in late May. Insiders sold a total of 125,568 shares in the last quarter.
• Recent earnings were weak: Kosmos reported a loss of $0.07 per share for the quarter, missing estimates, and revenue of $370.73 million versus expectations of $405.21 million. The company also showed negative return on equity and negative net margin.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) has been given an average rating of "Reduce" by the nine brokerages that are presently covering the firm, Marketbeat Ratings reports. Four research analysts have rated the stock with a sell recommendation, three have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $2.4357.

Several research analysts have issued reports on the stock. The Goldman Sachs Group lowered shares of Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 price target for the company. in a report on Thursday, April 9th. Wall Street Zen upgraded shares of Kosmos Energy from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Mizuho restated an "underperform" rating and set a $3.00 price target (up from $2.00) on shares of Kosmos Energy in a report on Wednesday, May 27th. Johnson Rice upgraded shares of Kosmos Energy from an "accumulate" rating to a "buy" rating and set a $4.25 price target for the company in a report on Wednesday, March 25th. Finally, Royal Bank Of Canada lowered shares of Kosmos Energy to a "neutral" rating in a report on Wednesday, May 27th.

Insider Transactions at Kosmos Energy

In other news, Director Roy A. Franklin sold 43,466 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $2.73, for a total transaction of $118,662.18. Following the completion of the sale, the director owned 150,722 shares of the company's stock, valued at $411,471.06. This trade represents a 22.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Steven Sterin sold 38,636 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $2.73, for a total transaction of $105,476.28. Following the sale, the director directly owned 331,295 shares of the company's stock, valued at approximately $904,435.35. This trade represents a 10.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 125,568 shares of company stock valued at $342,801 in the last quarter. 1.90% of the stock is currently owned by company insiders.

Institutional Trading of Kosmos Energy

Several large investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio raised its stake in 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 acquiring an additional 4,361 shares during the period. Parallel Advisors LLC raised its stake in Kosmos Energy by 41.0% in the 3rd quarter. Parallel Advisors LLC now owns 24,634 shares of the oil and gas producer's stock valued at $41,000 after acquiring an additional 7,169 shares during the period. Orion Porfolio Solutions LLC raised its stake in Kosmos Energy by 18.8% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 57,782 shares of the oil and gas producer's stock valued at $99,000 after acquiring an additional 9,159 shares during the period. SmartHarvest Portfolios LLC raised its stake in Kosmos Energy by 73.0% in the 1st quarter. SmartHarvest Portfolios LLC now owns 23,814 shares of the oil and gas producer's stock valued at $66,000 after acquiring an additional 10,050 shares during the period. Finally, Equitable Holdings Inc. raised its stake in Kosmos Energy by 30.3% in the 4th quarter. Equitable Holdings Inc. now owns 45,539 shares of the oil and gas producer's stock valued at $41,000 after acquiring an additional 10,598 shares during the period. Institutional investors and hedge funds own 95.33% of the company's stock.

Kosmos Energy Price Performance

Kosmos Energy stock opened at $2.45 on Friday. The company has a debt-to-equity ratio of 5.56, a quick ratio of 0.36 and a current ratio of 0.60. Kosmos Energy has a 52-week low of $0.84 and a 52-week high of $3.34. The firm has a 50 day moving average price of $2.84 and a two-hundred day moving average price of $2.10. The firm has a market cap of $1.45 billion, a price-to-earnings ratio of -1.46, a PEG ratio of 0.37 and a beta of 0.68.

Kosmos Energy (NYSE:KOS - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The oil and gas producer reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.08 by ($0.15). Kosmos Energy had a negative return on equity of 37.60% and a negative net margin of 59.38%.The firm had revenue of $370.73 million for the quarter, compared to the consensus estimate of $405.21 million. Equities analysts predict that Kosmos Energy will post 0.24 EPS for the current year.

About Kosmos Energy

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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