Kosmos Energy (NYSE:KOS) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Kosmos Energy to “buy” from “hold,” but broader analyst sentiment remains negative: the consensus rating is “reduce,” with an average price target of $2.53.
• Kosmos reported quarterly EPS of $0.11, beating estimates of $0.09, while revenue reached $607.25 million versus expectations of $483.23 million. Despite the earnings beat, the company posted a negative net margin of 33.98% and negative return on equity.
• The stock opened at $2.48, near its 50-day and 200-day moving averages, while insiders sold 294,580 shares worth $689,275 over the past 90 days. Institutional investors own approximately 95.33% of the company.

Kosmos Energy (NYSE:KOS - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

A number of other research analysts have also issued reports on the company. Mizuho raised Kosmos Energy to a "strong sell" rating in a report on Friday, July 31st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Kosmos Energy in a report on Monday. Stephens lowered their price objective on shares of Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating on the stock in a research report on Tuesday, July 21st. Finally, Royal Bank Of Canada lowered shares of Kosmos Energy to a "neutral" rating in a research report on Wednesday, May 27th. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $2.53.

Kosmos Energy Stock Performance

NYSE KOS opened at $2.48 on Friday. The company has a quick ratio of 0.36, a current ratio of 0.59 and a debt-to-equity ratio of 3.58. Kosmos Energy has a 52-week low of $0.84 and a 52-week high of $3.34. The business's 50-day moving average price is $2.46 and its 200 day moving average price is $2.42. The firm has a market cap of $1.48 billion, a P/E ratio of -2.08, a P/E/G ratio of 0.18 and a beta of 0.72.

Kosmos Energy (NYSE:KOS - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.02. The firm had revenue of $607.25 million for the quarter, compared to analysts' expectations of $483.23 million. Kosmos Energy had a negative return on equity of 17.73% and a negative net margin of 33.98%. On average, equities research analysts expect that Kosmos Energy will post 0.45 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Nealesh D. Shah sold 45,980 shares of Kosmos Energy stock in a transaction that occurred on 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 in the company, valued at $3,967,590.50. The trade was a 2.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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. Also, Director Steven Sterin sold 38,636 shares of Kosmos Energy stock in a transaction that occurred 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 completion of the sale, the director owned 331,295 shares in the company, valued at approximately $904,435.35. This trade represents a 10.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 294,580 shares of company stock worth $689,275. Corporate insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Kosmos Energy

Several institutional investors have recently made changes to their positions in the stock. Pallas Capital Advisors LLC purchased a new position in shares of Kosmos Energy in the 2nd quarter valued at 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 purchasing an additional 13,854 shares during the period. Cibc World Markets Corp purchased a new stake in Kosmos Energy during the fourth quarter worth about $28,000. Kestra Advisory Services LLC purchased a new stake in Kosmos Energy during the first quarter worth about $31,000. Finally, Caerus Investment Advisors LLC purchased a new stake in Kosmos Energy during the first quarter worth about $31,000. 95.33% of the stock is currently 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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