Kosmos Energy (NYSE:KOS) Shares Gap Up - Here's What Happened

Key Points

• Kosmos Energy shares gapped up on Friday, opening at $2.22 after closing at $2.15 and trading as high as $2.26 in early activity.
• Despite the stock move, Wall Street sentiment remains cautious: analysts hold an average “Reduce” rating with a $2.44 target price, and recent calls included downgrades from RBC and Goldman Sachs.
• The company’s latest earnings were weak, as Kosmos reported a loss of $0.07 per share versus expectations for a profit and posted revenue below estimates, while insiders have also been selling shares recently.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $2.15, but opened at $2.22. Kosmos Energy shares last traded at $2.26, with a volume of 3,017,982 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on KOS. Royal Bank Of Canada downgraded shares of Kosmos Energy to a "neutral" rating in a report on Wednesday, May 27th. The Goldman Sachs Group downgraded shares of Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 price objective for the company. in a report on Thursday, April 9th. Mizuho reaffirmed an "underperform" rating and issued a $3.00 price objective (up from $2.00) on shares of Kosmos Energy in a research report on Wednesday, May 27th. Weiss Ratings cut shares of Kosmos Energy from a "sell (d)" rating to a "sell (d-)" rating in a research note on Wednesday, May 6th. Finally, Wall Street Zen raised shares of Kosmos Energy from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $2.44.

Kosmos Energy Stock Up 0.5%

The company has a current ratio of 0.60, a quick ratio of 0.36 and a debt-to-equity ratio of 5.56. The firm has a market cap of $1.28 billion, a P/E ratio of -1.29, a price-to-earnings-growth ratio of 0.27 and a beta of 0.71. The stock's fifty day moving average is $2.62 and its two-hundred day moving average is $2.27.

Kosmos Energy (NYSE:KOS - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The oil and gas producer reported ($0.07) earnings per share 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. As a group, research analysts anticipate that Kosmos Energy Ltd. will post 0.29 earnings per share for the current year.

Insider Buying and Selling at Kosmos Energy

In other Kosmos Energy news, Director Steven Sterin sold 38,636 shares of the firm's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $2.73, for a total value of $105,476.28. Following the sale, the director owned 331,295 shares of the company's stock, valued at $904,435.35. This trade represents a 10.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John Douglas Kelso Grant sold 43,466 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $2.73, for a total transaction of $118,662.18. Following the completion of the transaction, the director owned 82,311 shares in the company, valued at $224,709.03. The trade was a 34.56% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 294,580 shares of company stock worth $689,275 over the last quarter. Company insiders own 1.90% of the company's stock.

Institutional Trading of Kosmos Energy

A number of institutional investors have recently modified their holdings of KOS. Assenagon Asset Management S.A. purchased a new position in Kosmos Energy during the 2nd quarter valued at about $138,000. Militia Capital Management LLC bought a new stake in shares of Kosmos Energy in the 1st quarter worth approximately $70,000. Parallel Advisors LLC grew its position in shares of Kosmos Energy by 106.5% in the 1st quarter. Parallel Advisors LLC now owns 25,268 shares of the oil and gas producer's stock worth $70,000 after buying an additional 13,031 shares during the last quarter. Caerus Investment Advisors LLC bought a new stake in shares of Kosmos Energy in the 1st quarter worth approximately $31,000. Finally, Bank of America Corp DE lifted its holdings in Kosmos Energy by 14.2% in the first quarter. Bank of America Corp DE now owns 5,541,020 shares of the oil and gas producer's stock worth $15,404,000 after buying an additional 689,800 shares during the period. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

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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