Kosmos Energy (NYSE:KOS) Shares Gap Down After Earnings Miss

Key Points

• Kosmos Energy shares fell sharply, opening at $2.55 versus a prior close of $2.85 and later trading at $2.46 after the company reported disappointing results.
• The company posted quarterly EPS of $0.06, below the $0.13 consensus estimate, while revenue of $410.06 million also missed expectations of $466.11 million.
• Analyst sentiment remains negative: KOS has an average “Reduce” rating, with a consensus price target of $2.37; institutional investors nevertheless own approximately 95.33% of the stock.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) gapped down before the market opened on Monday following a weaker than expected earnings announcement. The stock had previously closed at $2.85, but opened at $2.55. Kosmos Energy shares last traded at $2.46, with a volume of 5,410,066 shares trading hands.

The oil and gas producer reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.07). Kosmos Energy had a negative net margin of 33.98% and a negative return on equity of 17.73%. The firm had revenue of $410.06 million during the quarter, compared to the consensus estimate of $466.11 million.

Analyst Upgrades and Downgrades

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

Institutional Investors Weigh In On Kosmos Energy

Several hedge funds and other institutional investors have recently modified their holdings of the business. Renaissance Technologies LLC boosted its holdings in Kosmos Energy by 224.0% during the 1st 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 period. Bank of America Corp DE purchased a new stake in Kosmos Energy in the second quarter worth $6,188,000. Bank of New York Mellon Corp purchased a new stake in Kosmos Energy in the second quarter worth $3,913,000. Arrowstreet Capital Limited Partnership bought a new stake in shares of Kosmos Energy during the first quarter worth $4,809,000. Finally, Algert Global LLC lifted its position in shares of Kosmos Energy by 98.2% during the second quarter. Algert Global LLC now owns 2,490,698 shares of the oil and gas producer's stock worth $5,255,000 after purchasing an additional 1,233,831 shares during the last quarter. 95.33% of the stock is currently owned by hedge funds and other institutional investors.

Kosmos Energy Price Performance

The stock has a market capitalization of $1.48 billion, a PE ratio of -2.09, a price-to-earnings-growth ratio of 0.17 and a beta of 0.78. 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's 50 day moving average price is $2.76 and its 200-day moving average price is $2.50.

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.

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