Kosmos Energy (NYSE:KOS) Shares Down 6.8% - Should You Sell?

Key Points

• Kosmos Energy shares fell 6.8% to $2.33 in Thursday trading, with volume well below average. The stock was already under pressure after a recent decline from its prior close of $2.50.
• Analyst sentiment remains cautious: the stock carries a consensus rating of “Reduce” and an average price target of $2.44. Recent actions included multiple downgrades, with two Buy ratings, three Holds, and four Sells among analysts.
• The company also reported weak fundamentals, including a Q1 earnings miss of -$0.07 EPS versus expectations of $0.08 and revenue below estimates. Kosmos Energy continues to operate with high leverage and negative profitability metrics, while insiders have recently sold shares.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s stock price fell 6.8% during trading on Thursday . The company traded as low as $2.33 and last traded at $2.33. 6,279,519 shares were traded during mid-day trading, a decline of 71% from the average session volume of 21,324,445 shares. The stock had previously closed at $2.50.

Wall Street Analysts Forecast Growth

KOS has been the topic of several recent analyst reports. Wall Street Zen upgraded shares of Kosmos Energy from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Royal Bank Of Canada lowered shares of Kosmos Energy to a "neutral" rating in a research report on Wednesday, May 27th. 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. The Goldman Sachs Group cut shares of Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 price objective for the company. in a research note on Thursday, April 9th. Finally, Mizuho restated an "underperform" rating and set a $3.00 price objective (up from $2.00) on shares of Kosmos Energy in a report on Wednesday, May 27th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, Kosmos Energy presently has an average rating of "Reduce" and a consensus price target of $2.44.

Kosmos Energy Stock Down 3.6%

The company has a debt-to-equity ratio of 5.56, a quick ratio of 0.36 and a current ratio of 0.60. The firm has a market cap of $1.43 billion, a PE ratio of -1.43, a PEG ratio of 0.37 and a beta of 0.68. The stock has a fifty day moving average price of $2.85 and a 200-day moving average price of $2.09.

Kosmos Energy (NYSE:KOS - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The oil and gas producer reported ($0.07) EPS for the quarter, missing the consensus estimate 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 business had revenue of $370.73 million during the quarter, compared to analysts' expectations of $405.21 million. Research analysts expect that Kosmos Energy Ltd. will post 0.24 EPS for the current year.

Insider Activity

In related news, Director John Douglas Kelso Grant sold 43,466 shares of the stock in a transaction on Wednesday, May 27th. 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 82,311 shares in the company, valued at approximately $224,709.03. This represents a 34.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Steven Sterin sold 38,636 shares of the firm's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $2.73, for a total value of $105,476.28. Following the completion of the transaction, the director directly owned 331,295 shares in the company, valued at $904,435.35. This trade represents a 10.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 125,568 shares of company stock valued at $342,801. Company insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Kosmos Energy

Institutional investors and hedge funds have recently modified their holdings of the stock. Equinox Partners Investment Management LLC raised its holdings in shares of Kosmos Energy by 6.2% during the 1st quarter. Equinox Partners Investment Management LLC now owns 20,678,033 shares of the oil and gas producer's stock valued at $57,485,000 after buying an additional 1,208,053 shares during the period. Vanguard Group Inc. boosted its holdings in Kosmos Energy by 2.0% in the 3rd quarter. Vanguard Group Inc. now owns 14,320,597 shares of the oil and gas producer's stock worth $23,772,000 after acquiring an additional 286,593 shares during the period. Charles Schwab Investment Management Inc. grew its position in Kosmos Energy by 19.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 12,045,593 shares of the oil and gas producer's stock valued at $10,930,000 after acquiring an additional 1,962,936 shares in the last quarter. Geode Capital Management LLC grew its position in Kosmos Energy by 8.0% in the fourth quarter. Geode Capital Management LLC now owns 11,272,318 shares of the oil and gas producer's stock valued at $10,230,000 after acquiring an additional 832,029 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Kosmos Energy by 3.0% during the third quarter. Invesco Ltd. now owns 9,903,093 shares of the oil and gas producer's stock valued at $16,439,000 after purchasing an additional 289,626 shares during the period. Hedge funds and other institutional investors own 95.33% of the company's stock.

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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