Kosmos Energy (NYSE:KOS) Shares Up 5.3% - Here's What Happened

Key Points

• Kosmos Energy shares rose 5.3% to $2.97 in Thursday trading, with roughly 5.3 million shares changing hands.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce” and an average price target of $2.53, while recent ratings include downgrades and a “strong sell.”
• The company exceeded quarterly expectations, reporting $0.11 in earnings per share versus $0.09 expected and $607.25 million in revenue versus $483.23 million estimated, though it continues to show negative net margins and high leverage.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s stock price rose 5.3% on Thursday . The stock traded as high as $2.98 and last traded at $2.97. Approximately 5,256,989 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 19,858,928 shares. The stock had previously closed at $2.82.

Wall Street Analyst Weigh In

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

Kosmos Energy Stock Performance

The business's 50-day simple moving average is $2.41 and its two-hundred day simple moving average is $2.50. The company has a quick ratio of 0.38, a current ratio of 0.59 and a debt-to-equity ratio of 3.58. The firm has a market cap of $1.75 billion, a price-to-earnings ratio of -2.47, a P/E/G ratio of 0.20 and a beta of 0.72.

Kosmos Energy (NYSE:KOS - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.02. The firm had revenue of $607.25 million during 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 expect that Kosmos Energy Ltd. will post 0.45 earnings per share for the current fiscal year.

Insider Buying and Selling at Kosmos Energy

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 value of $118,662.18. Following the completion of the sale, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 stock was 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 $904,435.35. This represents a 10.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 294,580 shares of company stock worth $689,275. 1.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC increased its stake in Kosmos Energy by 56.7% during the 1st quarter. AQR Capital Management LLC now owns 387,739 shares of the oil and gas producer's stock worth $884,000 after buying an additional 140,261 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Kosmos Energy by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 278,082 shares of the oil and gas producer's stock valued at $634,000 after acquiring an additional 12,045 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Kosmos Energy by 21.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,541,006 shares of the oil and gas producer's stock valued at $5,793,000 after acquiring an additional 443,384 shares in the last quarter. Strs Ohio acquired a new stake in shares of Kosmos Energy in the first quarter worth approximately $120,000. Finally, Rhumbline Advisers boosted its stake in shares of Kosmos Energy by 7.9% in the second quarter. Rhumbline Advisers now owns 718,954 shares of the oil and gas producer's stock worth $1,237,000 after acquiring an additional 52,750 shares during the last quarter. 95.33% of the stock is 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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