Kosmos Energy (NYSE:KOS) Announces Quarterly Earnings Results

Key Points

• Kosmos Energy beat quarterly estimates, reporting adjusted earnings of $0.11 per share versus the $0.09 consensus, while revenue reached $607.25 million compared with expectations of $483.23 million.
• The stock opened at $2.69 and has traded between $0.84 and $3.34 over the past year. Despite the earnings beat, its financial profile remains pressured, including a negative net margin of 59.38% and debt-to-equity ratio of 5.56.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $2.53; insiders sold 294,580 shares worth approximately $689,275 during the last quarter.

Kosmos Energy (NYSE:KOS - Get Free Report) released its quarterly earnings data on Monday. The oil and gas producer reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $0.02, FiscalAI reports. Kosmos Energy had a negative return on equity of 37.60% and a negative net margin of 59.38%.The firm had revenue of $607.25 million during the quarter, compared to analyst estimates of $483.23 million.

Kosmos Energy Price Performance

KOS opened at $2.69 on Monday. The company has a current ratio of 0.60, a quick ratio of 0.36 and a debt-to-equity ratio of 5.56. The company has a market cap of $1.60 billion, a price-to-earnings ratio of -1.60, a price-to-earnings-growth ratio of 0.31 and a beta of 0.72. The stock has a fifty day simple moving average of $2.50 and a two-hundred day simple moving average of $2.39. Kosmos Energy has a 12-month low of $0.84 and a 12-month high of $3.34.

Wall Street Analyst Weigh In

Several research analysts recently commented on KOS shares. Mizuho reaffirmed an "underperform" rating and issued a $3.00 target price (up from $2.00) on shares of Kosmos Energy in a research note on Wednesday, May 27th. Wall Street Zen raised shares of Kosmos Energy from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. The Goldman Sachs Group lowered shares of Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 price target on the stock. in a report on Thursday, April 9th. Royal Bank Of Canada cut shares of Kosmos Energy to a "neutral" rating in a research report on Wednesday, May 27th. Finally, Stephens lowered their price objective on shares of 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. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $2.53.

Insider Activity

In other news, Director Roy A. Franklin sold 43,466 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $2.73, for a total value of $118,662.18. Following 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Josh R. Marion sold 24,969 shares of Kosmos Energy stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $2.05, for a total transaction of $51,186.45. Following the transaction, the senior vice president directly owned 233,404 shares of the company's stock, valued at approximately $478,478.20. This trade represents a 9.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last quarter, insiders have sold 294,580 shares of company stock worth $689,275. 1.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kosmos Energy

Large investors have recently made changes to their positions in the business. Parallel Advisors LLC grew its stake in shares of 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 worth $41,000 after buying an additional 7,169 shares during the last quarter. Captrust Financial Advisors raised its stake in Kosmos Energy by 93.9% during the fourth quarter. Captrust Financial Advisors now owns 28,601 shares of the oil and gas producer's stock valued at $26,000 after buying an additional 13,854 shares during the last quarter. Cibc World Markets Corp purchased a new position in Kosmos Energy during the fourth quarter valued at $28,000. Equitable Holdings Inc. bought a new stake in Kosmos Energy in the third quarter worth $58,000. Finally, Voleon Capital Management LP bought a new stake in Kosmos Energy in the second quarter worth $62,000. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

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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