Kosmos Energy (NYSE:KOS) Shares Gap Down Following Weak Earnings

Key Points

• Kosmos Energy shares fell 3.7% after reporting quarterly earnings of ($0.19) EPS, significantly below the analyst consensus estimate of ($0.06).
• The company's revenue of $393.52 million also missed expectations, coming in under the anticipated $444.26 million.
• Analyst ratings have been mixed, with a consensus rating of "Hold" and target prices revised down, notably from $4.00 to $3.00 by Mizuho.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) shares gapped down prior to trading on Monday following a dissappointing earnings announcement. The stock had previously closed at $1.95, but opened at $1.88. Kosmos Energy shares last traded at $1.90, with a volume of 2,798,426 shares traded.

The oil and gas producer reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The business had revenue of $393.52 million for the quarter, compared to analyst estimates of $444.26 million. Kosmos Energy had a negative return on equity of 14.16% and a negative net margin of 10.74%.

Analysts Set New Price Targets

Several research firms have recently issued reports on KOS. Mizuho lowered their price objective on Kosmos Energy from $4.00 to $3.00 and set a "neutral" rating for the company in a research report on Tuesday, May 13th. Wall Street Zen raised Kosmos Energy to a "sell" rating in a report on Friday, May 16th. Benchmark reissued a "hold" rating on shares of Kosmos Energy in a report on Thursday, June 5th. Finally, The Goldman Sachs Group reduced their target price on Kosmos Energy from $3.50 to $3.00 and set a "buy" rating for the company in a report on Monday, May 19th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $4.93.

Insider Buying and Selling at Kosmos Energy

In other Kosmos Energy news, Director John Douglas Kelso Grant sold 27,923 shares of the company's stock in a transaction that occurred on Thursday, June 5th. The stock was sold at an average price of $1.81, for a total transaction of $50,540.63. Following the completion of the sale, the director directly owned 29,921 shares of the company's stock, valued at $54,157.01. This represents a 48.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 1.99% of the company's stock.

Institutional Trading of Kosmos Energy

Several institutional investors and hedge funds have recently added to or reduced their stakes in KOS. Encompass Capital Advisors LLC purchased a new stake in Kosmos Energy during the 4th quarter valued at approximately $35,723,000. Patient Capital Management LLC raised its stake in 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 valued at $58,645,000 after acquiring an additional 7,707,707 shares during the last quarter. Invesco Ltd. raised its stake in Kosmos Energy by 40.2% during the 1st 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 during the last quarter. Corigliano Investment Advisers LLC purchased a new stake in Kosmos Energy during the 1st quarter valued at approximately $7,047,000. Finally, Barclays PLC raised its stake in Kosmos Energy by 85.0% during the 4th quarter. Barclays PLC now owns 5,611,213 shares of the oil and gas producer's stock valued at $19,190,000 after acquiring an additional 2,578,431 shares during the last quarter. 95.33% of the stock is owned by hedge funds and other institutional investors.

Kosmos Energy Trading Down 4.7%

The company has a 50 day simple moving average of $2.02 and a 200 day simple moving average of $2.18. The company has a current ratio of 0.45, a quick ratio of 0.40 and a debt-to-equity ratio of 2.56. The stock has a market capitalization of $829.76 million, a PE ratio of -5.26 and a beta of 1.49.

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.