Kosmos Energy (NYSE:KOS) Shares Up 9.1% - Should You Buy?

Key Points

• Kosmos Energy shares rose 9.1% on Wednesday, trading as high as $2.65 before closing near $2.64, though volume was far below its daily average.
• Analyst sentiment remains cautious overall, with a consensus rating of “Reduce” and an average price target of $2.53, despite a few recent upgrades and higher target prices from some firms.
• The company’s latest earnings were weak, as Kosmos reported a loss of $0.07 per share versus expectations for a profit, while revenue also came in below estimates; insider selling was also noted in recent months.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) was up 9.1% during trading on Wednesday . The stock traded as high as $2.65 and last traded at $2.64. Approximately 3,038,347 shares changed hands during trading, a decline of 85% from the average daily volume of 20,892,824 shares. The stock had previously closed at $2.42.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on KOS. Wall Street Zen upgraded shares of Kosmos Energy from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Johnson Rice raised Kosmos Energy from an "accumulate" rating to a "buy" rating and set a $4.25 price target on the stock in a research report on Wednesday, March 25th. Royal Bank Of Canada lowered Kosmos Energy to a "neutral" rating in a report on Wednesday, May 27th. Mizuho reissued 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. Finally, The Goldman Sachs Group downgraded Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 target price on the stock. in a research note on Thursday, April 9th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and four have issued 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 Up 7.4%

The company has a market capitalization of $1.54 billion, a price-to-earnings ratio of -1.55, a PEG ratio of 0.27 and a beta of 0.71. The company has a debt-to-equity ratio of 5.56, a quick ratio of 0.36 and a current ratio of 0.60. The business's 50 day moving average is $2.58 and its 200 day moving average is $2.30.

Kosmos Energy (NYSE:KOS - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The oil and gas producer reported ($0.07) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.08 by ($0.15). Kosmos Energy had a negative return on equity of 37.60% and a negative net margin of 59.38%.The company had revenue of $370.73 million during the quarter, compared to analysts' expectations of $405.21 million. Sell-side analysts anticipate that Kosmos Energy Ltd. will post 0.29 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Roy A. Franklin sold 43,466 shares of the firm's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $2.73, for a total value of $118,662.18. Following the completion of the transaction, the director directly owned 150,722 shares in the company, valued at $411,471.06. This trade represents a 22.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Nealesh D. Shah sold 45,980 shares of Kosmos Energy stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $2.05, for a total value of $94,259.00. Following the sale, the chief financial officer directly owned 1,935,410 shares of the company's stock, valued at $3,967,590.50. This trade represents a 2.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 294,580 shares of company stock worth $689,275 over the last three months. Corporate insiders own 1.90% of the company's stock.

Institutional Trading of Kosmos Energy

Several institutional investors and hedge funds have recently bought and sold shares of the business. Public Employees Retirement System of Ohio boosted its position in Kosmos Energy by 10.2% during the first quarter. Public Employees Retirement System of Ohio now owns 46,938 shares of the oil and gas producer's stock worth $130,000 after purchasing an additional 4,361 shares in the last quarter. Parallel Advisors LLC boosted its stake in shares of Kosmos Energy by 41.0% during the 3rd quarter. Parallel Advisors LLC now owns 24,634 shares of the oil and gas producer's stock worth $41,000 after purchasing an additional 7,169 shares during the last quarter. Orion Porfolio Solutions LLC boosted its position in Kosmos Energy by 18.8% during the second quarter. Orion Porfolio Solutions LLC now owns 57,782 shares of the oil and gas producer's stock worth $99,000 after acquiring an additional 9,159 shares during the last quarter. SmartHarvest Portfolios LLC grew its position in shares of Kosmos Energy by 73.0% in the first quarter. SmartHarvest Portfolios LLC now owns 23,814 shares of the oil and gas producer's stock valued at $66,000 after purchasing an additional 10,050 shares during the period. Finally, Equitable Holdings Inc. grew its holdings in Kosmos Energy by 30.3% in the 4th quarter. Equitable Holdings Inc. now owns 45,539 shares of the oil and gas producer's stock valued at $41,000 after buying an additional 10,598 shares during the period. 95.33% of the stock is currently owned by institutional investors and hedge funds.

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.

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