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 sells, three holds and two buys among nine firms. The average 12-month price target is $2.53, close to the stock’s $2.48 opening price.
• Kosmos reported quarterly earnings of $0.11 per share, beating estimates of $0.09, while revenue of $607.25 million exceeded the $483.23 million consensus. However, the company remains unprofitable, with a negative 33.98% net margin and high debt-to-equity of 3.58.
• Insiders sold 294,580 shares worth approximately $689,275 during the past quarter, though the sales were attributed to tax withholding on vested equity awards. Institutional investors own a substantial 95.33% of the company.

Shares of Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) have been assigned a consensus rating of "Reduce" from the nine research firms that are presently covering the firm, Marketbeat.com reports. Four research analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and two have issued a buy recommendation on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $2.5286.

KOS has been the subject of several research reports. Stephens reduced their price objective on Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating for the company in a research note on Tuesday, July 21st. Royal Bank Of Canada cut Kosmos Energy to a "neutral" rating in a report on Wednesday, May 27th. Mizuho raised 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. Finally, Wall Street Zen upgraded Kosmos Energy from a "hold" rating to a "buy" rating in a research report on Saturday.

Insiders Place Their Bets

In other Kosmos Energy news, CEO Andrew G. Inglis sold 85,935 shares of Kosmos Energy stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 4,678,043 shares in the company, valued at $9,589,988.15. The trade was a 1.80% decrease in their ownership of the stock. The transaction was disclosed in a legal 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, Director Roy A. Franklin sold 43,466 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $2.73, for a total value of $118,662.18. Following the completion of the sale, the director directly owned 150,722 shares of the company's stock, valued at $411,471.06. This represents a 22.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 294,580 shares of company stock valued at $689,275 over the last quarter. 1.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of KOS. Pallas Capital Advisors LLC acquired a new position in Kosmos Energy during the 2nd quarter worth $25,000. Bank of New York Mellon Corp acquired a new stake in shares of Kosmos Energy in the second quarter valued at about $3,913,000. State of Wyoming acquired a new stake in shares of Kosmos Energy in the second quarter valued at about $107,000. GSA Capital Partners LLP bought a new position in shares of Kosmos Energy in the second quarter worth about $291,000. Finally, Kiker Wealth Management LLC bought a new position in shares of Kosmos Energy in the second quarter worth about $426,000. Institutional investors own 95.33% of the company's stock.

Kosmos Energy Stock Performance

Shares of KOS stock opened at $2.48 on Friday. Kosmos Energy has a 12-month low of $0.84 and a 12-month high of $3.34. The company has a debt-to-equity ratio of 3.58, a current ratio of 0.59 and a quick ratio of 0.36. The firm has a market capitalization of $1.48 billion, a price-to-earnings ratio of -2.08, a price-to-earnings-growth ratio of 0.18 and a beta of 0.72. The business has a 50 day simple moving average of $2.46 and a 200 day simple moving average of $2.42.

Kosmos Energy (NYSE:KOS - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.02. The business had revenue of $607.25 million during the quarter, compared to the consensus estimate 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 research analysts anticipate that Kosmos Energy will post 0.45 EPS for the current year.

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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