Kosmos Energy (NYSE:KOS) Stock Price Passes Above 200-Day Moving Average - Time to Sell?

Key Points

• Kosmos Energy shares briefly moved above their 200-day moving average, trading as high as $2.22 before last trading at $2.09. The move comes amid heavy volume and follows a recent drop of 4.1%.
• Analyst sentiment remains cautious overall: Goldman Sachs downgraded the stock to sell, RBC moved it to neutral, and MarketBeat shows a consensus rating of Reduce with a $2.44 target price.
• The company continues to face fundamental pressure, with its latest quarterly results missing EPS and revenue estimates. Kosmos also reported weak profitability and a high debt-to-equity ratio, while insiders have sold shares in recent months.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $2.15 and traded as high as $2.22. Kosmos Energy shares last traded at $2.09, with a volume of 16,442,174 shares changing hands.

Analyst Upgrades and Downgrades

Several research firms have commented on KOS. The Goldman Sachs Group downgraded shares of Kosmos Energy from a "neutral" rating to a "sell" rating and set a $2.25 price objective on the stock. in a report on Thursday, April 9th. Royal Bank Of Canada downgraded shares of Kosmos Energy to a "neutral" rating in a research note on Wednesday, May 27th. Johnson Rice raised shares of 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. 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, Mizuho reaffirmed an "underperform" rating and issued a $3.00 price objective (up from $2.00) on shares of Kosmos Energy in a report on Wednesday, May 27th. Two equities 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 company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $2.44.

Kosmos Energy Stock Down 4.1%

The stock has a fifty day simple moving average of $2.79 and a two-hundred day simple moving average of $2.15. The firm has a market cap of $1.24 billion, a PE ratio of -1.24, a price-to-earnings-growth ratio of 0.25 and a beta of 0.68. The company has a current ratio of 0.60, a quick ratio of 0.36 and a debt-to-equity ratio of 5.56.

Kosmos Energy (NYSE:KOS - Get Free Report) last announced 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 firm had revenue of $370.73 million during the quarter, compared to analysts' expectations of $405.21 million. As a group, sell-side analysts expect that Kosmos Energy Ltd. will post 0.29 EPS for the current fiscal year.

Insider Buying and Selling

In other news, 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 value of $105,476.28. Following the transaction, the director owned 331,295 shares of the company's stock, valued at approximately $904,435.35. This represents a 10.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director John Douglas Kelso Grant sold 43,466 shares of the stock in a transaction on Wednesday, May 27th. The stock was 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 82,311 shares in the company, valued at $224,709.03. This trade represents a 34.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 125,568 shares of company stock valued at $342,801. Company insiders own 1.90% of the company's stock.

Hedge Funds Weigh In On Kosmos Energy

A number of institutional investors have recently added to or reduced their stakes in KOS. First Eagle Investment Management LLC grew its holdings in shares of Kosmos Energy by 34.1% during the third quarter. First Eagle Investment Management LLC now owns 2,747,831 shares of the oil and gas producer's stock worth $4,561,000 after purchasing an additional 698,740 shares in the last quarter. Dalton Investments Inc. bought a new position in shares of Kosmos Energy in the fourth quarter worth approximately $454,000. Equinox Partners Investment Management LLC raised its stake in Kosmos Energy by 9.5% in the fourth quarter. Equinox Partners Investment Management LLC now owns 19,469,980 shares of the oil and gas producer's stock valued at $17,667,000 after purchasing an additional 1,689,500 shares in the last quarter. Alpine Global Management LLC purchased a new stake in Kosmos Energy in the fourth quarter valued at approximately $188,000. Finally, Rafferty Asset Management LLC lifted its position in Kosmos Energy by 40.5% during the third quarter. Rafferty Asset Management LLC now owns 738,806 shares of the oil and gas producer's stock valued at $1,226,000 after purchasing an additional 212,970 shares during the last quarter. 95.33% of the stock is currently 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.

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