Talos Energy (NYSE:TALO) Issues Earnings Results

Key Points

• Q1 results beat estimates: Talos reported EPS of ($0.07) vs. consensus ($0.11) and revenue of $472.3M (vs. $446.4M est.), but revenue was down 7.9% year‑over‑year and the company still posted a negative net margin (27.77%) and negative ROE (6.59%).
• Significant insider sale: Control Empresarial De Capital sold 1,352,000 shares at an average of $16.68 for roughly $22.55M, trimming its position by 3.17% while remaining a large holder (~41.23M shares valued at ~$688M).
• Mixed analyst view with modest upside: KeyCorp boosted its target to $21 and set an overweight rating, while the consensus across analysts is a “Hold” with an average price target of $17.20 (3 Buy, 3 Hold, 1 Sell).

Talos Energy (NYSE:TALO - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported ($0.07) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.11) by $0.04, Briefing.com reports. The business had revenue of $472.31 million during the quarter, compared to the consensus estimate of $446.39 million. Talos Energy had a negative net margin of 27.77% and a negative return on equity of 6.59%. The firm's quarterly revenue was down 7.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.06 EPS.

Talos Energy Stock Down 1.7%

Talos Energy stock opened at $15.93 on Wednesday. Talos Energy has a twelve month low of $7.27 and a twelve month high of $17.00. The firm has a 50 day moving average price of $14.49 and a 200-day moving average price of $12.33. The company has a market capitalization of $2.66 billion, a P/E ratio of -5.61 and a beta of 0.35. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.57.

Insider Activity

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

Institutional Trading of Talos Energy

Hedge funds have recently made changes to their positions in the company. Coldstream Capital Management Inc. bought a new position in shares of Talos Energy during the 3rd quarter worth $118,000. Xponance LLC bought a new stake in Talos Energy in the 4th quarter valued at about $114,000. Envestnet Asset Management Inc. bought a new stake in Talos Energy in the 3rd quarter valued at about $113,000. Orion Porfolio Solutions LLC purchased a new stake in Talos Energy during the second quarter valued at about $101,000. Finally, Nomura Holdings Inc. purchased a new stake in Talos Energy during the second quarter valued at about $87,000. 89.35% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on TALO shares. KeyCorp boosted their target price on Talos Energy from $15.00 to $21.00 and gave the stock an "overweight" rating in a research note on Thursday, April 2nd. Benchmark downgraded Talos Energy from a "buy" rating to a "hold" rating in a research report on Thursday, March 5th. Mizuho lifted their price target on Talos Energy from $14.00 to $15.00 and gave the stock a "neutral" rating in a report on Tuesday, March 17th. Wall Street Zen raised Talos Energy from a "sell" rating to a "hold" rating in a research report on Sunday. Finally, Roth Mkm restated a "neutral" rating and issued a $16.00 price objective (up from $13.00) on shares of Talos Energy in a research note on Wednesday, April 8th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $17.20.

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.