Talos Energy Inc. (NYSE:TALO) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts' consensus is "Hold" — seven analysts cover Talos (1 sell, 3 hold, 3 buy) with an average 1‑year target of $17.20, while recent notes include KeyCorp and Citi raising targets to $21 and $20 and Benchmark and others cutting ratings.
• Recent earnings missed expectations — Q4 EPS was ($0.44) vs. ($0.27) expected and revenue was $392.2M vs. $431.2M consensus, with a negative net margin (~27.8%) and negative ROE; the stock trades around $14.88 (1‑yr range $6.76–$17.00) and has a $2.49B market cap.
• Significant insider selling — Control Empresarial De Capital sold 1,352,000 shares at about $16.68 (~$22.6M), trimming its stake, while institutional investors own roughly 89.35% of the stock.

Talos Energy Inc. (NYSE:TALO - Get Free Report) has been assigned a consensus recommendation of "Hold" from the seven research firms that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $17.20.

TALO has been the subject of several analyst reports. Benchmark cut shares of Talos Energy from a "buy" rating to a "hold" rating in a research note on Thursday, March 5th. KeyCorp raised their target price on shares of Talos Energy from $15.00 to $21.00 and gave the company an "overweight" rating in a research note on Thursday, April 2nd. Citigroup lifted their price objective on shares of Talos Energy from $16.00 to $20.00 and gave the stock a "buy" rating in a research report on Tuesday, March 31st. Wall Street Zen cut shares of Talos Energy from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Talos Energy in a research report on Monday, December 29th.

Talos Energy Price Performance

NYSE:TALO opened at $14.88 on Friday. Talos Energy has a 1-year low of $6.76 and a 1-year high of $17.00. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.57. The firm has a fifty day simple moving average of $14.24 and a 200 day simple moving average of $12.09. The stock has a market capitalization of $2.49 billion, a PE ratio of -5.24 and a beta of 0.35.

Talos Energy (NYSE:TALO - Get Free Report) last released its earnings results on Tuesday, February 24th. The company reported ($0.44) earnings per share for the quarter, missing the consensus estimate of ($0.27) by ($0.17). Talos Energy had a negative net margin of 27.77% and a negative return on equity of 6.59%. The firm had revenue of $392.24 million during the quarter, compared to the consensus estimate of $431.22 million. During the same period in the prior year, the business posted $0.08 earnings per share. Talos Energy's quarterly revenue was down 19.2% compared to the same quarter last year. On average, research analysts expect that Talos Energy will post 0.21 EPS for the current fiscal year.

Insider Buying and Selling

In other Talos Energy news, insider Control Empresarial De Capital sold 1,352,000 shares of Talos Energy stock in a transaction on Friday, March 27th. The shares were sold at an average price of $16.68, for a total transaction of $22,551,360.00. Following the completion of the transaction, the insider directly owned 41,233,604 shares of the company's stock, valued at $687,776,514.72. The trade was a 3.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.36% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Talos Energy

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sourcerock Group LLC boosted its position in shares of Talos Energy by 11.0% in the second quarter. Sourcerock Group LLC now owns 11,193,177 shares of the company's stock valued at $94,918,000 after acquiring an additional 1,110,685 shares during the period. Nuveen LLC boosted its position in shares of Talos Energy by 341.7% in the fourth quarter. Nuveen LLC now owns 1,423,138 shares of the company's stock valued at $15,683,000 after acquiring an additional 1,100,967 shares during the period. Federated Hermes Inc. boosted its position in shares of Talos Energy by 2,347.6% in the fourth quarter. Federated Hermes Inc. now owns 643,231 shares of the company's stock valued at $7,088,000 after acquiring an additional 616,951 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Talos Energy by 25.0% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,965,543 shares of the company's stock valued at $28,440,000 after acquiring an additional 592,509 shares during the period. Finally, Goldman Sachs Group Inc. boosted its position in shares of Talos Energy by 61.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,506,442 shares of the company's stock valued at $16,601,000 after acquiring an additional 572,628 shares during the period. 89.35% of the stock is owned by institutional investors.

About Talos Energy

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company's core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy's asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.

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