Kosmos Energy (NYSE:KOS) Shares Down 3.2% - What's Next?

Key Points

• Kosmos Energy shares fell 3.2% to $2.70 in midday trading, while volume was down 85% from its average session level.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and an average price target of $2.53, with recent ratings ranging from “strong buy” to “strong sell.”
• The company beat quarterly earnings and revenue estimates, reporting $0.11 in adjusted earnings per share versus expectations of $0.09 and revenue of $607.25 million versus $483.23 million; however, it continues to post negative margins and has high leverage, with a debt-to-equity ratio of 3.58.

Shares of Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) were down 3.2% on Tuesday. The company traded as low as $2.67 and last traded at $2.70. 2,789,636 shares were traded during mid-day trading, a decline of 85% from the average session volume of 18,298,703 shares. The stock had previously closed at $2.79.

Analysts Set New Price Targets

Several research analysts recently commented on KOS shares. Stephens reduced their target price on Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating for the company in a research report on Tuesday, July 21st. Wall Street Zen upgraded Kosmos Energy from a "buy" rating to a "strong-buy" rating in a report on Saturday. Mizuho raised shares of Kosmos Energy to a "strong sell" rating in a research report on Friday, July 31st. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Kosmos Energy in a research note on Monday, August 3rd. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $2.53.

Kosmos Energy Price Performance

The company has a quick ratio of 0.38, a current ratio of 0.59 and a debt-to-equity ratio of 3.58. The stock has a market capitalization of $1.63 billion, a P/E ratio of -2.30, a price-to-earnings-growth ratio of 0.16 and a beta of 0.88. The business's 50 day simple moving average is $2.75 and its two-hundred day simple moving average is $2.68.

Kosmos Energy (NYSE:KOS - Get Free Report) last announced its earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.02. Kosmos Energy had a negative return on equity of 17.73% and a negative net margin of 33.98%. The firm had revenue of $607.25 million for the quarter, compared to the consensus estimate of $483.23 million. As a group, sell-side analysts forecast that Kosmos Energy Ltd. will post 0.57 earnings per share for the current fiscal year.

Institutional Trading of Kosmos Energy

Hedge funds and other institutional investors have recently bought and sold shares of the company. Equinox Partners Investment Management LLC boosted its position in shares of Kosmos Energy by 6.2% during the 1st quarter. Equinox Partners Investment Management LLC now owns 20,678,033 shares of the oil and gas producer's stock valued at $57,485,000 after acquiring an additional 1,208,053 shares during the last quarter. First Trust Advisors LP increased its position in shares of Kosmos Energy by 9.2% during the 1st quarter. First Trust Advisors LP now owns 7,694,248 shares of the oil and gas producer's stock valued at $21,390,000 after purchasing an additional 646,052 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Kosmos Energy by 20.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 7,083,075 shares of the oil and gas producer's stock valued at $19,699,000 after purchasing an additional 1,204,789 shares during the last quarter. Bank of America Corp DE boosted its stake in Kosmos Energy by 14.2% in the first quarter. Bank of America Corp DE now owns 5,541,020 shares of the oil and gas producer's stock worth $15,404,000 after buying an additional 689,800 shares in the last quarter. Finally, Renaissance Technologies LLC grew its position in Kosmos Energy by 224.0% during the first quarter. Renaissance Technologies LLC now owns 5,339,638 shares of the oil and gas producer's stock valued at $14,844,000 after acquiring an additional 3,691,800 shares during the last quarter. Institutional investors own 95.33% of the company's stock.

Kosmos Energy Company Profile

Kosmos Energy Ltd. NYSE: KOS is an independent international 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 hydrocarbon resources in selected emerging and frontier basins.

Kosmos has historically maintained a portfolio concentrated along the Atlantic margins of Africa. Its activities have included oil production and development projects offshore Ghana, including interests in the Jubilee and TEN fields, as well as natural gas exploration and development in the offshore Mauritania-Senegal basin.

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