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

Key Points

• Analysts are cautious on Kosmos Energy, with a consensus rating of “Reduce” from nine analysts. The average 12-month price target is about $2.22, below the stock’s recent trading level.
• Recent earnings fell short of expectations as Kosmos reported a loss of $0.07 per share versus the expected profit of $0.08. Revenue also came in below estimates at $370.73 million.
• Insiders have been buying shares, including CEO Andrew G. Inglis and Director Adebayo O. Ogunlesi, who made significant purchases in March. Institutional investors also hold a large majority of the company’s stock.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) has been assigned a consensus rating of "Reduce" from the nine analysts that are covering the stock, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $2.2214.

Several analysts recently issued reports on KOS shares. The Goldman Sachs Group lowered Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 target price on the stock. in a report on Thursday, April 9th. Wall Street Zen upgraded Kosmos Energy from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Johnson Rice upgraded Kosmos Energy from an "accumulate" rating to a "buy" rating and set a $4.25 target price on the stock in a report on Wednesday, March 25th. Finally, Weiss Ratings lowered Kosmos Energy from a "sell (d)" rating to a "sell (d-)" rating in a report on Wednesday, May 6th.

Kosmos Energy Stock Performance

Shares of Kosmos Energy stock opened at $3.05 on Tuesday. The firm has a market cap of $1.81 billion, a price-to-earnings ratio of -1.82, a price-to-earnings-growth ratio of 0.45 and a beta of 0.72. The stock's 50-day moving average is $2.83 and its 200-day moving average is $1.91. 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 5.56, a current ratio of 0.60 and a quick ratio of 0.36.

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

Insider Buying and Selling

In related news, CEO Andrew G. Inglis bought 315,790 shares of the company's stock in a transaction that occurred on Tuesday, March 10th. The shares were acquired at an average price of $1.90 per share, for a total transaction of $600,001.00. Following the completion of the acquisition, the chief executive officer owned 4,542,807 shares of the company's stock, valued at approximately $8,631,333.30. The trade was a 7.47% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Adebayo O. Ogunlesi bought 3,157,895 shares of the company's stock in a transaction that occurred on Tuesday, March 10th. The shares were bought at an average price of $1.90 per share, for a total transaction of $6,000,000.50. Following the acquisition, the director directly owned 4,974,184 shares of the company's stock, valued at $9,450,949.60. This represents a 173.87% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have acquired 3,684,210 shares of company stock worth $6,999,999. Insiders own 1.90% of the company's stock.

Institutional Trading of Kosmos Energy

Several institutional investors and hedge funds have recently bought and sold shares of the business. Equinox Partners Investment Management LLC raised its stake in Kosmos Energy by 6.2% in the first quarter. Equinox Partners Investment Management LLC now owns 20,678,033 shares of the oil and gas producer's stock valued at $57,485,000 after buying an additional 1,208,053 shares during the period. Vanguard Group Inc. raised its stake in Kosmos Energy by 2.0% in the third quarter. Vanguard Group Inc. now owns 14,320,597 shares of the oil and gas producer's stock valued at $23,772,000 after buying an additional 286,593 shares during the period. Charles Schwab Investment Management Inc. raised its stake in Kosmos Energy by 19.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 12,045,593 shares of the oil and gas producer's stock valued at $10,930,000 after buying an additional 1,962,936 shares during the period. Geode Capital Management LLC raised its stake in Kosmos Energy by 8.0% in the fourth quarter. Geode Capital Management LLC now owns 11,272,318 shares of the oil and gas producer's stock valued at $10,230,000 after buying an additional 832,029 shares during the period. Finally, Invesco Ltd. raised its stake in Kosmos Energy by 3.0% in the third quarter. Invesco Ltd. now owns 9,903,093 shares of the oil and gas producer's stock valued at $16,439,000 after buying an additional 289,626 shares during the period. Institutional investors own 95.33% of the company's stock.

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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