Kosmos Energy (NYSE:KOS) Stock Sees Unusually High Call Option Buying

Key Points

• Call option activity surged: Traders bought 7,659 KOS call options, 45% above the average volume of 5,280 contracts.
• Analyst sentiment remained bearish: Kosmos Energy received an average “Reduce” rating, with one Buy, four Holds and four Sells, and a consensus price target of $2.37.
• Operating results missed expectations: The company reported quarterly EPS of $0.06 versus $0.13 expected and revenue of $410.06 million versus $466.11 million forecast; shares fell to $2.48 during Monday trading.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders bought 7,659 call options on the stock. This is an increase of 45% compared to the average volume of 5,280 call options.

Analyst Ratings Changes

A number of research analysts have commented on KOS shares. Mizuho raised Kosmos Energy to a "strong sell" rating in a research report on Friday, July 31st. Jefferies Financial Group lowered Kosmos Energy from a "buy" rating to a "hold" rating and raised their price objective for the company from $2.75 to $2.90 in a research report on Wednesday, October 28th. Stephens dropped their target price on shares of Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating on the stock in a report on Tuesday, July 21st. Wall Street Zen downgraded shares of Kosmos Energy from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Kosmos Energy in a research note on Friday. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, Kosmos Energy currently has an average rating of "Reduce" and a consensus price target of $2.37.

Kosmos Energy Stock Performance

Shares of NYSE:KOS traded down $0.37 during trading on Monday, hitting $2.48. The company's stock had a trading volume of 13,655,383 shares, compared to its average volume of 18,239,652. The company has a 50-day moving average of $2.76 and a 200-day moving average of $2.50. Kosmos Energy has a 12 month low of $0.84 and a 12 month high of $3.34. The company has a debt-to-equity ratio of 3.58, a current ratio of 0.59 and a quick ratio of 0.38. The firm has a market cap of $1.48 billion, a price-to-earnings ratio of -2.08, a P/E/G ratio of 0.17 and a beta of 0.78.

Kosmos Energy (NYSE:KOS - Get Free Report) last announced its quarterly earnings data on Monday, November 2nd. The oil and gas producer reported $0.06 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.07). The company had revenue of $410.06 million for the quarter, compared to the consensus estimate of $466.11 million. Kosmos Energy had a negative net margin of 33.98% and a negative return on equity of 17.73%. On average, sell-side analysts expect that Kosmos Energy will post 0.57 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. WESPAC Advisors LLC bought a new position in shares of Kosmos Energy during the 3rd quarter valued at approximately $907,000. Verdence Capital Advisors LLC increased its position in Kosmos Energy by 15.5% in the third quarter. Verdence Capital Advisors LLC now owns 397,775 shares of the oil and gas producer's stock worth $1,010,000 after purchasing an additional 53,496 shares during the last quarter. Inspire Investing LLC increased its position in Kosmos Energy by 52.2% in the third quarter. Inspire Investing LLC now owns 496,529 shares of the oil and gas producer's stock worth $1,261,000 after purchasing an additional 170,398 shares during the last quarter. SBI Securities Co. Ltd. raised its stake in Kosmos Energy by 62.0% during the third quarter. SBI Securities Co. Ltd. now owns 11,453 shares of the oil and gas producer's stock valued at $29,000 after purchasing an additional 4,382 shares in the last quarter. Finally, Abel Hall LLC purchased a new stake in Kosmos Energy during the third quarter valued at $35,000. Hedge funds and other institutional investors own 95.33% of the company's stock.

About Kosmos Energy

Kosmos Energy Ltd. NYSE: KOS is an independent energy company engaged in the exploration, development and production of oil and natural gas. The company focuses primarily on offshore assets and seeks to develop resources in partnership with national oil companies, international energy companies and other industry participants.

Kosmos has historically operated across several regions, including offshore Ghana, Equatorial Guinea, Mauritania and Senegal, as well as the U.S. Gulf of Mexico.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.