Kosmos Energy (NYSE:KOS) Reaches New 52-Week High - Still a Buy?

Key Points

• Kosmos Energy reached a new 52-week high of $3.18 on heavy volume (~15.8M shares), trading above its 50‑day ($2.62) and 200‑day ($1.75) moving averages.
• Wall Street sentiment is mixed-to-negative with a MarketBeat consensus of Reduce and a $2.22 price target (2 Buys, 4 Holds, 3 Sells), after several recent downgrades and a few more bullish notes.
• Insiders have been buying (CEO bought 315,790 shares at $1.90 and insiders purchased ~3.68M shares (~$7M) in 90 days), even as the company reports negative EPS, a negative ROE/net margin and a high debt‑to‑equity ratio (5.53).

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Friday . The company traded as high as $3.18 and last traded at $3.18, with a volume of 15842838 shares trading hands. The stock had previously closed at $3.08.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on KOS shares. Wall Street Zen downgraded shares of Kosmos Energy from a "hold" rating to a "sell" rating in a research note on Saturday, April 25th. Sanford C. Bernstein decreased their price target on shares of Kosmos Energy from $1.70 to $0.80 and set a "market perform" rating on the stock in a research note on Monday, January 5th. The Goldman Sachs Group downgraded shares of Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 price target on the stock. in a research note on Thursday, April 9th. Finally, Johnson Rice raised shares of Kosmos Energy from an "accumulate" rating to a "buy" rating and set a $4.25 price target on the stock in a research note on Wednesday, March 25th. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Kosmos Energy currently has a consensus rating of "Reduce" and a consensus price target of $2.22.

Kosmos Energy Trading Up 3.9%

The firm has a market cap of $1.54 billion, a PE ratio of -2.19, a P/E/G ratio of 0.46 and a beta of 0.65. The company has a quick ratio of 0.45, a current ratio of 0.75 and a debt-to-equity ratio of 5.53. The company's 50 day moving average price is $2.62 and its two-hundred day moving average price is $1.75.

Kosmos Energy (NYSE:KOS - Get Free Report) last posted its quarterly earnings results on Saturday, February 14th. The oil and gas producer reported ($0.16) EPS for the quarter. Kosmos Energy had a negative return on equity of 39.29% and a negative net margin of 54.18%.The company had revenue of $294.62 million during the quarter. As a group, sell-side analysts forecast that Kosmos Energy Ltd. will post 0.24 EPS for the current year.

Insider Transactions at Kosmos Energy

In related news, CEO Andrew G. Inglis acquired 315,790 shares of the firm's stock in a transaction that occurred on Tuesday, March 10th. The stock was purchased at an average cost of $1.90 per share, with a total value of $600,001.00. Following the transaction, the chief executive officer directly owned 4,542,807 shares of the company's stock, valued at $8,631,333.30. This trade represents a 7.47% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director J Michael Stice purchased 52,631 shares of Kosmos Energy stock in a transaction on Tuesday, March 10th. The shares were acquired at an average cost of $1.90 per share, with a total value of $99,998.90. Following the completion of the transaction, the director directly owned 207,620 shares in the company, valued at $394,478. The trade was a 33.96% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders bought 3,684,210 shares of company stock worth $6,999,999 and sold 272,844 shares worth $377,592. Company insiders own 1.99% of the company's stock.

Institutional Investors Weigh In On Kosmos Energy

Several institutional investors and hedge funds have recently added to or reduced their stakes in KOS. M&G PLC raised its holdings in Kosmos Energy by 38.3% in the 3rd quarter. M&G PLC now owns 7,978,144 shares of the oil and gas producer's stock valued at $13,244,000 after buying an additional 2,210,302 shares during the period. First Eagle Investment Management LLC increased its stake in Kosmos Energy by 34.1% during the third quarter. First Eagle Investment Management LLC now owns 2,747,831 shares of the oil and gas producer's stock worth $4,561,000 after purchasing an additional 698,740 shares during the period. Rafferty Asset Management LLC increased its stake in Kosmos Energy by 40.5% during the third quarter. Rafferty Asset Management LLC now owns 738,806 shares of the oil and gas producer's stock worth $1,226,000 after purchasing an additional 212,970 shares during the period. Old Port Advisors acquired a new position in shares of Kosmos Energy during the fourth quarter worth about $27,000. Finally, Banco Santander S.A. grew its position in shares of Kosmos Energy by 236.6% during the third quarter. Banco Santander S.A. now owns 161,920 shares of the oil and gas producer's stock worth $269,000 after buying an additional 113,812 shares in the last quarter. Institutional investors and hedge funds own 95.33% of the company's stock.

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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