Kosmos Energy (NYSE:KOS) Releases Quarterly Earnings Results, Misses Expectations By $0.15 EPS

Key Points

• Kosmos reported Q1 EPS of ($0.07), missing analysts' consensus of $0.08 by $0.15, and recorded a negative net margin of 54.18% and negative return on equity of 39.29%.
• Shares dropped about 5.5% to $3.09 on the news; the company has a market cap of $1.49 billion, a negative P/E of -2.12, a high debt-to-equity ratio of 5.53, and a 12‑month trading range of $0.84–$3.32.
• Insiders bought heavily: Director Adebayo O. Ogunlesi purchased 3,157,895 shares and another director bought 52,631 shares at $1.90, with insiders acquiring 3,684,210 shares (~$7M) last quarter and owning 2.02% of the company.

Kosmos Energy (NYSE:KOS - Get Free Report) released its quarterly earnings data on Tuesday. 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), Zacks reports. Kosmos Energy had a negative net margin of 54.18% and a negative return on equity of 39.29%.

Kosmos Energy Trading Down 5.5%

KOS stock traded down $0.18 during trading on Tuesday, hitting $3.09. The company had a trading volume of 4,773,192 shares, compared to its average volume of 24,519,273. 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 firm has a 50-day moving average price of $2.62 and a 200-day moving average price of $1.75. Kosmos Energy has a 12 month low of $0.84 and a 12 month high of $3.32. The stock has a market cap of $1.49 billion, a price-to-earnings ratio of -2.12, a PEG ratio of 0.48 and a beta of 0.72.

Insider Transactions at Kosmos Energy

In other news, Director Adebayo O. Ogunlesi bought 3,157,895 shares of the stock in a transaction dated Tuesday, March 10th. The stock was bought at an average cost of $1.90 per share, with a total value of $6,000,000.50. Following the purchase, the director owned 4,974,184 shares of the company's stock, valued at approximately $9,450,949.60. This represents a 173.87% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director J Michael Stice acquired 52,631 shares of the company's stock in a transaction on Tuesday, March 10th. The shares were purchased at an average cost of $1.90 per share, with a total value of $99,998.90. Following the completion of the acquisition, the director directly owned 207,620 shares in the company, valued at approximately $394,478. The trade was a 33.96% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 3,684,210 shares of company stock valued at $6,999,999 and sold 75,915 shares valued at $107,799. Company insiders own 2.02% of the company's stock.

Institutional Trading of Kosmos Energy

A number of hedge funds have recently modified their holdings of KOS. Captrust Financial Advisors boosted its stake in Kosmos Energy by 93.9% during the 4th quarter. Captrust Financial Advisors now owns 28,601 shares of the oil and gas producer's stock worth $26,000 after acquiring an additional 13,854 shares during the last quarter. Cibc World Markets Corp bought a new stake in Kosmos Energy in the fourth quarter valued at approximately $28,000. Public Employees Retirement System of Ohio raised its holdings in Kosmos Energy by 35.7% in the fourth quarter. Public Employees Retirement System of Ohio now owns 42,577 shares of the oil and gas producer's stock worth $39,000 after purchasing an additional 11,209 shares during the period. Equitable Holdings Inc. boosted its position in shares of Kosmos Energy by 30.3% during the fourth quarter. Equitable Holdings Inc. now owns 45,539 shares of the oil and gas producer's stock worth $41,000 after purchasing an additional 10,598 shares in the last quarter. Finally, Parallel Advisors LLC boosted its position in shares of Kosmos Energy by 41.0% during the third quarter. Parallel Advisors LLC now owns 24,634 shares of the oil and gas producer's stock worth $41,000 after purchasing an additional 7,169 shares in the last quarter. 95.33% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

KOS has been the subject of several recent research reports. Sanford C. Bernstein dropped their price target on shares of Kosmos Energy from $1.70 to $0.80 and set a "market perform" rating for the company in a research report 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 for the company. in a report on Thursday, April 9th. Wall Street Zen cut shares of Kosmos Energy from a "hold" rating to a "sell" rating in a research note on Saturday, April 25th. Finally, Johnson Rice raised shares of Kosmos Energy from an "accumulate" rating to a "buy" rating and set a $4.25 price objective for the company in a report on Wednesday, March 25th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $2.22.

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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