Kosmos Energy (NYSE:KOS) Shares Gap Up - Still a Buy?

Key Points

• Kosmos Energy shares opened higher, rising from a prior close of $2.60 to $2.69 before trading near $2.62.
• Analyst sentiment remains negative overall: the stock has a consensus “Reduce” rating and a $2.53 target price, with four Sell ratings, three Holds and two Buys.
• The company beat quarterly earnings and revenue estimates, but continues to report a negative net margin and return on equity; insiders also sold about $689,000 worth of shares in the past 90 days.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $2.60, but opened at $2.69. Kosmos Energy shares last traded at $2.62, with a volume of 916,080 shares traded.

Analysts Set New Price Targets

KOS has been the subject of a number of recent analyst reports. Mizuho raised Kosmos Energy to a "strong sell" rating in a research report on Friday, July 31st. Wall Street Zen raised shares of Kosmos Energy from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Royal Bank Of Canada cut shares of Kosmos Energy to a "neutral" rating in a research note on Wednesday, May 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Kosmos Energy in a report on Monday, August 3rd. Finally, Stephens lowered their target price on shares of Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating on the stock in a research note on Tuesday, July 21st. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $2.53.

Kosmos Energy Price Performance

The company has a current ratio of 0.59, a quick ratio of 0.38 and a debt-to-equity ratio of 3.58. The firm has a market cap of $1.55 billion, a price-to-earnings ratio of -2.18, a PEG ratio of 0.19 and a beta of 0.72. The firm has a 50-day moving average of $2.42 and a two-hundred day moving average of $2.48.

Kosmos Energy (NYSE:KOS - Get Free Report) last released its earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.09 by $0.02. The firm had revenue of $607.25 million for the quarter, compared to analyst estimates of $483.23 million. Kosmos Energy had a negative return on equity of 17.73% and a negative net margin of 33.98%. As a group, sell-side analysts predict that Kosmos Energy Ltd. will post 0.45 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Roy A. Franklin sold 43,466 shares of the business's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $2.73, for a total transaction of $118,662.18. Following the transaction, the director owned 150,722 shares of the company's stock, valued at approximately $411,471.06. The trade was a 22.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 company's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $2.73, for a total transaction of $105,476.28. Following the transaction, the director owned 331,295 shares of the company's stock, valued at approximately $904,435.35. The trade was a 10.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 294,580 shares of company stock valued at $689,275 in the last ninety days. Company insiders own 1.90% of the company's stock.

Institutional Trading of Kosmos Energy

A number of hedge funds have recently bought and sold shares of KOS. Pallas Capital Advisors LLC bought a new position in shares of Kosmos Energy during the 2nd quarter worth about $25,000. Captrust Financial Advisors lifted its stake in shares of Kosmos Energy by 93.9% in the fourth quarter. Captrust Financial Advisors now owns 28,601 shares of the oil and gas producer's stock valued at $26,000 after buying an additional 13,854 shares during the period. Proficio Capital Partners LLC bought a new stake in shares of Kosmos Energy in the second quarter valued at about $27,000. Sanctuary Advisors LLC bought a new stake in shares of Kosmos Energy in the second quarter valued at about $27,000. Finally, Cibc World Markets Corp acquired a new stake in Kosmos Energy during the fourth quarter worth about $28,000. 95.33% of the stock is owned by institutional investors.

About Kosmos Energy

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source