Kosmos Energy (NYSE:KOS) Shares Gap Down - Here's Why

Key Points

• Kosmos Energy shares fell 4.2%, opening at $2.75 versus a prior close of $2.86 and last trading at $2.72.
• Analyst sentiment remains cautious, with two Buy, three Hold, and four Sell ratings; the consensus rating is “Reduce” with a $2.53 target price.
• The company exceeded quarterly expectations, reporting $0.11 EPS versus a $0.09 estimate and $607.25 million in revenue versus $483.23 million expected, though it continues to post negative margins and elevated debt levels.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $2.86, but opened at $2.75. Kosmos Energy shares last traded at $2.72, with a volume of 1,099,032 shares trading hands.

Wall Street Analysts Forecast Growth

KOS has been the topic of a number of research analyst reports. Mizuho upgraded Kosmos Energy to a "strong sell" rating in a research note on Friday, July 31st. Wall Street Zen raised shares of Kosmos Energy from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Stephens lowered their target price on shares of Kosmos Energy from $3.00 to $2.40 and set an "equal weight" rating for the company in a research note on Tuesday, July 21st. Royal Bank Of Canada downgraded shares of Kosmos Energy to a "neutral" rating in a research report on Wednesday, May 27th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Kosmos Energy in a research note on Monday, August 3rd. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $2.53.

Kosmos Energy Trading Down 4.2%

The firm has a market cap of $1.63 billion, a PE ratio of -2.30, a P/E/G ratio of 0.22 and a beta of 0.72. The company has a debt-to-equity ratio of 3.58, a quick ratio of 0.38 and a current ratio of 0.59. The company has a 50 day simple moving average of $2.42 and a two-hundred day simple moving average of $2.53.

Kosmos Energy (NYSE:KOS - Get Free Report) last released its earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 EPS 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 during the quarter, compared to the consensus estimate of $483.23 million. Analysts expect that Kosmos Energy Ltd. will post 0.45 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Steven Sterin sold 38,636 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $2.73, for a total value of $105,476.28. Following the completion of the sale, the director directly owned 331,295 shares in the company, valued at $904,435.35. The trade was a 10.44% 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. Also, SVP Josh R. Marion sold 24,969 shares of the business's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $2.05, for a total transaction of $51,186.45. Following the sale, the senior vice president directly owned 233,404 shares of the company's stock, valued at $478,478.20. This represents a 9.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 294,580 shares of company stock valued at $689,275 in the last 90 days. 1.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kosmos Energy

Large investors have recently modified their holdings of the business. Pallas Capital Advisors LLC acquired a new position in Kosmos Energy during the second quarter worth about $25,000. Captrust Financial Advisors raised its holdings in Kosmos Energy by 93.9% in the 4th quarter. Captrust Financial Advisors now owns 28,601 shares of the oil and gas producer's stock valued at $26,000 after acquiring an additional 13,854 shares during the last quarter. Proficio Capital Partners LLC acquired a new stake in Kosmos Energy in the 2nd quarter valued at about $27,000. Sanctuary Advisors LLC purchased a new position in Kosmos Energy in the 2nd quarter worth approximately $27,000. Finally, Cibc World Markets Corp purchased a new position in Kosmos Energy in the 4th quarter worth approximately $28,000. Hedge funds and other institutional investors own 95.33% of the company's stock.

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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