Kosmos Energy (NYSE:KOS) Price Target Cut to $2.40 by Analysts at Stephens

Key Points

• Stephens cut its price target on Kosmos Energy to $2.40 from $3.00 and kept an equal weight rating. The move comes amid a broader cautious stance from analysts, with the stock carrying a consensus Reduce rating and average target of $2.53.
• Kosmos Energy shares were up 4.3% to $2.40 in Tuesday trading, but the stock has faced mixed analyst actions recently, including downgrades from Royal Bank of Canada and Goldman Sachs. The company’s shares trade within a wide 52-week range of $0.84 to $3.34.
• The company’s latest earnings report missed expectations, posting a loss of $0.07 per share versus estimates for a $0.08 profit, while revenue also came in below forecasts. Insider selling has also continued, including transactions by a director and senior vice president.

Kosmos Energy (NYSE:KOS - Get Free Report) had its price target cut by equities researchers at Stephens from $3.00 to $2.40 in a research report issued on Tuesday,Benzinga reports. The firm presently has an "equal weight" rating on the oil and gas producer's stock.

Several other analysts have also recently issued reports on KOS. Weiss Ratings cut Kosmos Energy from a "sell (d)" rating to a "sell (d-)" rating in a research note on Wednesday, May 6th. Royal Bank Of Canada downgraded Kosmos Energy to a "neutral" rating in a report on Wednesday, May 27th. The Goldman Sachs Group lowered shares of Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 target price on the stock. in a research note on Thursday, April 9th. Johnson Rice raised shares of 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, Wall Street Zen raised shares of Kosmos Energy from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. 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.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $2.53.

Kosmos Energy Trading Up 4.3%

Shares of NYSE:KOS traded up $0.10 during midday trading on Tuesday, reaching $2.40. 5,782,688 shares of the company's stock were exchanged, compared to its average volume of 20,975,232. The stock has a market cap of $1.42 billion, a price-to-earnings ratio of -1.43, a P/E/G ratio of 0.26 and a beta of 0.71. Kosmos Energy has a fifty-two week low of $0.84 and a fifty-two week high of $3.34. The firm's 50 day simple moving average is $2.60 and its two-hundred day simple moving average is $2.29. 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 announced its earnings results on Wednesday, May 6th. The oil and gas producer reported ($0.07) earnings per share (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 analysts' expectations of $405.21 million. As a group, sell-side analysts forecast that Kosmos Energy will post 0.29 EPS for the current fiscal year.

Insider Buying and Selling at Kosmos Energy

In other Kosmos Energy news, Director Steven Sterin sold 38,636 shares of the firm's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $2.73, for a total value of $105,476.28. Following the completion of the sale, the director owned 331,295 shares of the company's stock, valued at approximately $904,435.35. This trade represents a 10.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Josh R. Marion sold 24,969 shares of the 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 completion of 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 ninety days, insiders have sold 294,580 shares of company stock valued at $689,275. Corporate insiders own 1.90% of the company's stock.

Institutional Trading of Kosmos Energy

Institutional investors and hedge funds have recently made changes to their positions in the stock. Captrust Financial Advisors grew its holdings in shares of 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 worth $26,000 after buying an additional 13,854 shares in the last quarter. Cibc World Markets Corp acquired a new position in shares of Kosmos Energy in the 4th quarter valued at about $28,000. Kestra Advisory Services LLC purchased a new stake in Kosmos Energy during the first quarter worth approximately $31,000. Caerus Investment Advisors LLC purchased a new stake in shares of Kosmos Energy during the 1st quarter valued at about $31,000. Finally, Abel Hall LLC purchased a new stake in shares of Kosmos Energy during the first quarter valued at approximately $36,000. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

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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