Kosmos Energy (NYSE:KOS) Trading Down 6.1% on Disappointing Earnings

Key Points

• Shares fell 6.1% to $3.07 after Kosmos reported Q EPS of ($0.07), missing the $0.08 consensus, and posted a negative net margin (54.18%) and negative return on equity (39.29%).
• Analyst sentiment is broadly bearish—MarketBeat shows an average rating of "Reduce" and an average price target of $2.22, with recent downgrades from firms including Goldman Sachs.
• Despite the weakness, insiders (including the CEO and a director) bought large blocks at $1.90 and insiders purchased 3,684,210 shares in the last 90 days, while institutional investors own 95.33% of the stock.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s share price fell 6.1% on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $3.07 and last traded at $3.07. 4,986,224 shares were traded during mid-day trading, a decline of 80% from the average session volume of 24,544,740 shares. The stock had previously closed at $3.27.

The oil and gas producer reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.08 by ($0.15). Kosmos Energy had a negative net margin of 54.18% and a negative return on equity of 39.29%.

Wall Street Analyst Weigh In

KOS has been the subject of a number of recent research reports. Johnson Rice upgraded shares of Kosmos Energy from an "accumulate" rating to a "buy" rating and set a $4.25 price objective for the company in a report on Wednesday, March 25th. The Goldman Sachs Group cut 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. Sanford C. Bernstein decreased their price objective on shares of Kosmos Energy from $1.70 to $0.80 and set a "market perform" rating for the company in a report on Monday, January 5th. Finally, Wall Street Zen lowered shares of Kosmos Energy from a "hold" rating to a "sell" rating in a research report on Saturday, April 25th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Kosmos Energy currently has an average rating of "Reduce" and an average price target of $2.22.

Insider Activity

In related news, Director J Michael Stice acquired 52,631 shares of the business's stock in a transaction dated Tuesday, March 10th. The stock was acquired at an average price of $1.90 per share, with a total value of $99,998.90. Following the completion of the transaction, the director owned 207,620 shares of the company's stock, valued at approximately $394,478. This represents a 33.96% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Andrew G. Inglis acquired 315,790 shares of the business's stock in a transaction dated Tuesday, March 10th. The shares were bought at an average cost of $1.90 per share, with a total value of $600,001.00. Following the transaction, the chief executive officer directly owned 4,542,807 shares of the company's stock, valued at $8,631,333.30. The trade was a 7.47% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders bought 3,684,210 shares of company stock worth $6,999,999 and sold 75,915 shares worth $107,799. Insiders own 2.02% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in KOS. Goldman Sachs Group Inc. raised its position in shares of Kosmos Energy by 175.2% during the fourth quarter. Goldman Sachs Group Inc. now owns 6,766,857 shares of the oil and gas producer's stock valued at $6,140,000 after buying an additional 4,308,275 shares during the last quarter. First Trust Advisors LP raised its position in shares of Kosmos Energy by 66.9% during the fourth quarter. First Trust Advisors LP now owns 7,048,196 shares of the oil and gas producer's stock valued at $6,396,000 after buying an additional 2,825,517 shares during the last quarter. Squarepoint Ops LLC raised its position in shares of Kosmos Energy by 333.0% during the second quarter. Squarepoint Ops LLC now owns 3,221,011 shares of the oil and gas producer's stock valued at $5,540,000 after buying an additional 2,477,102 shares during the last quarter. M&G PLC raised its position in shares of Kosmos Energy by 38.3% during the third quarter. M&G PLC now owns 7,978,144 shares of the oil and gas producer's stock valued at $13,244,000 after buying an additional 2,210,302 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Kosmos Energy by 19.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 12,045,593 shares of the oil and gas producer's stock valued at $10,930,000 after buying an additional 1,962,936 shares during the last quarter. Institutional investors and hedge funds own 95.33% of the company's stock.

Kosmos Energy Price Performance

The stock's 50-day moving average price is $2.62 and its 200 day moving average price is $1.75. The firm has a market cap of $1.44 billion, a price-to-earnings ratio of -2.05, a price-to-earnings-growth ratio of 0.48 and a beta of 0.72. The company has a quick ratio of 0.45, a current ratio of 0.75 and a debt-to-equity ratio of 5.53.

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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