Kosmos Energy (NYSE:KOS) Shares Gap Up - Here's What Happened

Key Points

• Kosmos Energy shares rose 2.5%, opening at $2.90 versus the prior close of $2.76 and last trading near $2.89.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $2.53; recent recommendations ranged from “buy” to “strong sell.”
• The company exceeded quarterly expectations, reporting $0.11 in EPS versus $0.09 expected and revenue of $607.25 million versus $483.23 million, though it continues to report negative margins and return on equity.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $2.76, but opened at $2.90. Kosmos Energy shares last traded at $2.89, with a volume of 803,762 shares trading hands.

Wall Street Analyst Weigh In

KOS has been the topic of a number of research analyst reports. Mizuho upgraded Kosmos Energy to a "strong sell" rating in a report on Friday, July 31st. Wall Street Zen upgraded shares of Kosmos Energy from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. 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 research report on Tuesday, July 21st. Royal Bank Of Canada lowered shares of Kosmos Energy to a "neutral" rating in a research note on Wednesday, May 27th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Kosmos Energy in a report 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 issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average target price of $2.53.

Kosmos Energy Stock Up 2.5%

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 stock's 50 day simple moving average is $2.45 and its 200 day simple moving average is $2.57. The firm has a market cap of $1.69 billion, a P/E ratio of -2.38, a price-to-earnings-growth ratio of 0.20 and a beta of 0.72.

Kosmos Energy (NYSE:KOS - Get Free Report) last posted its earnings results on Monday, August 3rd. The oil and gas producer reported $0.11 EPS for the quarter, topping the consensus estimate of $0.09 by $0.02. Kosmos Energy had a negative net margin of 33.98% and a negative return on equity of 17.73%. The company had revenue of $607.25 million during the quarter, compared to the consensus estimate of $483.23 million. Research analysts anticipate that Kosmos Energy Ltd. will post 0.45 EPS for the current year.

Insiders Place Their Bets

In other Kosmos Energy news, CFO Nealesh D. Shah sold 45,980 shares of the business's stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $2.05, for a total transaction of $94,259.00. Following the completion of the sale, the chief financial officer directly owned 1,935,410 shares of the company's stock, valued at approximately $3,967,590.50. The trade was a 2.32% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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, CEO Andrew G. Inglis sold 85,935 shares of the 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 $176,166.75. Following the completion of the sale, the chief executive officer directly owned 4,678,043 shares of the company's stock, valued at approximately $9,589,988.15. This trade represents a 1.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders sold 169,012 shares of company stock valued at $346,475. Corporate insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Kosmos Energy

A number of institutional investors have recently added to or reduced their stakes in KOS. Pallas Capital Advisors LLC bought a new position in shares of Kosmos Energy in the second quarter valued at approximately $25,000. Captrust Financial Advisors lifted its holdings in Kosmos Energy by 93.9% during the fourth quarter. Captrust Financial Advisors now owns 28,601 shares of the oil and gas producer's stock worth $26,000 after acquiring an additional 13,854 shares during the period. Proficio Capital Partners LLC bought a new stake in Kosmos Energy during the second quarter worth $27,000. Sanctuary Advisors LLC purchased a new position in Kosmos Energy in the second quarter worth $27,000. Finally, Cibc World Markets Corp purchased a new position in Kosmos Energy in the fourth quarter worth $28,000. 95.33% of the stock is owned by institutional investors.

About Kosmos Energy

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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