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

Key Points

• Kosmos Energy shares rose 4.2%, opening at $2.69 versus a prior close of $2.59, with trading volume of about 782,340 shares.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce” and a $2.53 price target, with four sell ratings, three holds and two buys.
• Kosmos beat quarterly expectations with EPS of $0.11 versus $0.09 expected and revenue of $607.25 million, although it reported a negative net margin and return on equity; institutional investors own 95.33% of the stock.

Kosmos Energy Ltd. (NYSE:KOS - Get Free Report)'s stock price gapped up before the market opened on Thursday. The stock had previously closed at $2.59, but opened at $2.69. Kosmos Energy shares last traded at $2.69, with a volume of 782,340 shares.

Analyst Upgrades and Downgrades

Several research firms recently commented on KOS. Stephens cut their price target 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. Weiss Ratings reiterated a "sell (d-)" rating on shares of Kosmos Energy in a research note on Monday, August 3rd. Mizuho raised shares of Kosmos Energy to a "strong sell" rating in a research report on Friday, July 31st. Finally, Wall Street Zen downgraded shares of Kosmos Energy from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 19th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $2.53.

Kosmos Energy Stock Up 4.2%

The firm has a 50-day moving average of $2.71 and a 200 day moving average of $2.68. The stock has a market capitalization of $1.61 billion, a price-to-earnings ratio of -2.27, a price-to-earnings-growth ratio of 0.17 and a beta of 0.88. The company has a current ratio of 0.59, a quick ratio of 0.38 and a debt-to-equity ratio of 3.58.

Kosmos Energy (NYSE:KOS - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The oil and gas producer reported $0.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.09 by $0.02. The company had revenue of $607.25 million for the quarter, compared to analyst estimates of $483.23 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 anticipate that Kosmos Energy Ltd. will post 0.51 earnings per share for the current year.

Hedge Funds Weigh In On Kosmos Energy

Institutional investors have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company grew its stake in shares of Kosmos Energy by 20.9% during the second quarter. The Manufacturers Life Insurance Company now owns 155,923 shares of the oil and gas producer's stock valued at $329,000 after acquiring an additional 27,004 shares in the last quarter. Sequoia Financial Advisors LLC purchased a new stake in shares of Kosmos Energy during the second quarter worth about $114,000. Squarepoint Ops LLC lifted its stake in shares of Kosmos Energy by 813.3% in the second quarter. Squarepoint Ops LLC now owns 1,376,536 shares of the oil and gas producer's stock worth $2,904,000 after acquiring an additional 1,225,813 shares in the last quarter. Allworth Financial LP lifted its stake in shares of Kosmos Energy by 151.0% in the second quarter. Allworth Financial LP now owns 17,312 shares of the oil and gas producer's stock worth $37,000 after acquiring an additional 10,415 shares in the last quarter. Finally, Arizona State Retirement System boosted its holdings in Kosmos Energy by 20.9% in the second quarter. Arizona State Retirement System now owns 159,576 shares of the oil and gas producer's stock valued at $337,000 after purchasing an additional 27,591 shares during the last quarter. Institutional investors and hedge funds own 95.33% of the company's stock.

About Kosmos Energy

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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