Kosmos Energy (NYSE:KOS) Shares Gap Down on Disappointing 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) gapped down prior to trading on Monday after the company announced weaker than expected quarterly earnings. 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 firm 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 0.63% and a negative net margin of 0.80%.

Analyst Ratings Changes

Several brokerages recently weighed in on KOS. Mizuho cut their target price on shares of Kosmos Energy from $4.00 to $3.00 and set a "neutral" rating for the company in a research note on Tuesday, May 13th. Benchmark reissued a "hold" rating on shares of Kosmos Energy in a research note on Thursday, June 5th. Wall Street Zen raised shares of Kosmos Energy to a "sell" rating in a research note on Friday, May 16th. Finally, The Goldman Sachs Group cut their target price on shares of Kosmos Energy from $3.50 to $3.00 and set a "buy" rating for the company in a research note on Monday, May 19th. One analyst has rated the stock with a sell rating, three have issued a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $4.93.

Insider Buying and Selling

In other Kosmos Energy news, Director John Douglas Kelso Grant sold 27,923 shares of Kosmos Energy stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $1.81, for a total value of $50,540.63. Following the completion of the sale, the director owned 29,921 shares in the company, valued at $54,157.01. The trade was a 48.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 2.02% of the stock is owned by company insiders.

Institutional Trading of Kosmos Energy

Institutional investors have recently modified their holdings of the company. Boothbay Fund Management LLC purchased a new stake in shares of Kosmos Energy during the 4th quarter worth about $45,000. Vident Advisory LLC purchased a new stake in shares of Kosmos Energy during the 1st quarter worth about $30,000. Foster Group Inc. purchased a new stake in shares of Kosmos Energy during the 2nd quarter worth about $26,000. Verum Partners LLC purchased a new stake in shares of Kosmos Energy during the 2nd quarter worth about $29,000. Finally, Baader Bank Aktiengesellschaft purchased a new stake in shares of Kosmos Energy during the 2nd quarter worth about $30,000. Hedge funds and other institutional investors own 95.33% of the company's stock.

Kosmos Energy Stock Down 3.7%

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 firm has a market cap of $897.70 million, a PE ratio of -62.58 and a beta of 1.49. The stock has a fifty day moving average price of $2.00 and a 200-day moving average price of $2.22.

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.

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