Kosmos Energy (NYSE:KOS) Trading Down 4.4% - Time to Sell?

Key Points

• Kosmos Energy shares fell 4.4% to $2.61 in low-volume trading, below the analyst consensus price target of $2.53.
• Analyst sentiment is mostly negative: the stock carries a consensus “Reduce” rating, with four Sell, three Hold, and two Buy ratings.
• Although quarterly earnings and revenue exceeded estimates, Kosmos reported a negative net margin and return on equity; insiders also sold $346,475 worth of shares over the past 90 days.

Shares of Kosmos Energy Ltd. (NYSE:KOS - Get Free Report) dropped 4.4% on Monday . The company traded as low as $2.58 and last traded at $2.61. 3,086,028 shares changed hands during trading, a decline of 84% from the average session volume of 18,966,494 shares. The stock had previously closed at $2.73.

Analyst Ratings Changes

A number of brokerages have recently issued reports on KOS. Stephens lowered 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 reaffirmed a "sell (d-)" rating on shares of Kosmos Energy in a report on Monday, August 3rd. Wall Street Zen cut shares of Kosmos Energy from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Mizuho raised shares of Kosmos Energy to a "strong sell" rating in a report on Friday, July 31st. Finally, Royal Bank Of Canada lowered shares of Kosmos Energy to a "neutral" rating in a research report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $2.53.

Kosmos Energy Trading Down 3.7%

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 firm has a market capitalization of $1.57 billion, a P/E ratio of -2.21, a price-to-earnings-growth ratio of 0.18 and a beta of 0.73. The firm's 50-day simple moving average is $2.67 and its 200-day simple moving average is $2.67.

Kosmos Energy (NYSE:KOS - Get Free Report) last issued its quarterly 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 net margin of 33.98% and a negative return on equity of 17.73%. The firm had revenue of $607.25 million for the quarter, compared to analyst estimates of $483.23 million. Analysts anticipate that Kosmos Energy Ltd. will post 0.51 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Nealesh Shah sold 45,980 shares of the company's stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $2.05, for a total value of $94,259.00. Following the completion of the transaction, the chief financial officer directly owned 1,935,410 shares in the company, valued at approximately $3,967,590.50. This represents a 2.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 Inglis sold 85,935 shares of the stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $2.05, for a total value of $176,166.75. Following the transaction, the chief executive officer owned 4,678,043 shares in the company, valued at $9,589,988.15. This trade represents a 1.80% decrease in their ownership of the stock. 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 a total of 169,012 shares of company stock valued at $346,475 over the last 90 days. Insiders own 1.90% of the company's stock.

Institutional Investors Weigh In On Kosmos Energy

A number of hedge funds have recently made changes to their positions in the business. The Manufacturers Life Insurance Company boosted its stake in shares of Kosmos Energy by 20.9% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 155,923 shares of the oil and gas producer's stock valued at $329,000 after purchasing an additional 27,004 shares in the last quarter. Sequoia Financial Advisors LLC bought a new stake in Kosmos Energy in the second quarter worth $114,000. Squarepoint Ops LLC boosted its position in Kosmos Energy by 813.3% during the second quarter. Squarepoint Ops LLC now owns 1,376,536 shares of the oil and gas producer's stock valued at $2,904,000 after buying an additional 1,225,813 shares during the period. Allworth Financial LP boosted its position in Kosmos Energy by 151.0% during the second quarter. Allworth Financial LP now owns 17,312 shares of the oil and gas producer's stock valued at $37,000 after buying an additional 10,415 shares during the period. Finally, Arizona State Retirement System grew its stake in shares of Kosmos Energy by 20.9% during 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 buying an additional 27,591 shares during the last quarter. 95.33% of the stock is currently owned by institutional investors.

About Kosmos Energy

Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. The company focuses on finding, developing and producing oil and natural gas resources, with an emphasis on offshore assets in emerging and established energy regions.

Kosmos has historically concentrated its operations along the Atlantic margins of West Africa, including interests in Ghana, Equatorial Guinea and the waters offshore Mauritania and Senegal. Its activities have included exploration, field development and production of crude oil and natural gas, as well as participation in projects designed to supply natural gas for liquefied natural gas (LNG) production and domestic markets.

Founded in 2003, Kosmos was involved in the discovery and development of major petroleum resources offshore Ghana, including the Jubilee and TEN fields.

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