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

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $2.00, but opened at $1.92. Kosmos Energy shares last traded at $1.96, with a volume of 2,255,223 shares.

Analyst Upgrades and Downgrades

KOS has been the topic of several recent research reports. The Goldman Sachs Group decreased their target price on shares of Kosmos Energy from $3.50 to $3.00 and set a "buy" rating on the stock in a research report on Monday, May 19th. Wall Street Zen raised Kosmos Energy to a "sell" rating in a research note on Friday, May 16th. Benchmark restated a "hold" rating on shares of Kosmos Energy in a research report on Thursday, June 5th. Finally, Mizuho dropped their target price on Kosmos Energy from $4.00 to $3.00 and set a "neutral" rating for the company in a report on Tuesday, May 13th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and three have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $4.93.

Kosmos Energy Price Performance

The company has a debt-to-equity ratio of 2.59, a quick ratio of 0.40 and a current ratio of 0.76. The company has a market capitalization of $881.93 million, a P/E ratio of -61.58 and a beta of 1.44. The firm's fifty day moving average is $1.82 and its 200 day moving average is $2.48.

Kosmos Energy (NYSE:KOS - Get Free Report) last announced its earnings results on Tuesday, May 6th. The oil and gas producer reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.15) by ($0.07). Kosmos Energy had a negative net margin of 0.80% and a negative return on equity of 0.63%. The business had revenue of $290.43 million for the quarter, compared to analysts' expectations of $338.23 million. As a group, analysts predict that Kosmos Energy Ltd. will post 0.42 earnings per share for the current fiscal year.

Insider Activity at Kosmos Energy

In related news, Director John Douglas Kelso Grant sold 27,923 shares of Kosmos Energy stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $1.81, for a total transaction of $50,540.63. Following the completion of the sale, the director now owns 29,921 shares in the company, valued at $54,157.01. This trade represents a 48.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 1.99% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kosmos Energy

A number of institutional investors have recently modified their holdings of the stock. Encompass Capital Advisors LLC purchased a new position in Kosmos Energy during the 4th quarter worth $35,723,000. Patient Capital Management LLC grew its position in shares of Kosmos Energy by 81.6% during the 4th quarter. Patient Capital Management LLC now owns 17,147,729 shares of the oil and gas producer's stock worth $58,645,000 after buying an additional 7,707,707 shares in the last quarter. Grantham Mayo Van Otterloo & Co. LLC grew its position in shares of Kosmos Energy by 22.1% during the 4th quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 32,627,567 shares of the oil and gas producer's stock worth $111,586,000 after buying an additional 5,906,210 shares in the last quarter. William Blair Investment Management LLC increased its stake in shares of Kosmos Energy by 28.1% during the fourth quarter. William Blair Investment Management LLC now owns 18,743,734 shares of the oil and gas producer's stock valued at $64,104,000 after buying an additional 4,114,499 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of Kosmos Energy by 40.2% in the first quarter. Invesco Ltd. now owns 10,898,600 shares of the oil and gas producer's stock valued at $24,849,000 after acquiring an additional 3,127,003 shares in the last quarter. 95.33% of the stock is owned by hedge funds and other institutional investors.

Kosmos Energy Company Profile

Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company's primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal.