Talos Energy (NYSE:TALO) Shares Down 4% - Here's Why

Key Points

• Shares fell ~4% to about $14.53 on Tuesday with just ~354,286 shares traded, roughly an 85% drop from the stock's average daily volume, signaling unusually light liquidity during the decline.
• Analysts are mixed but consensus is a "Hold" with an average target of $17.20; ratings range from Citigroup's $20 "Buy" to several "Hold" and one "Sell" (3 Buy, 3 Hold, 1 Sell).
• Talos reported a quarterly miss—EPS of ‑$0.44 vs. estimate ‑$0.27 and revenue of $392.24M (down 19.2% y/y vs. $431.22M expected)—and continues to show negative margins and return on equity.

Talos Energy Inc. (NYSE:TALO - Get Free Report)'s stock price dropped 4% on Tuesday . The stock traded as low as $14.45 and last traded at $14.5250. Approximately 354,286 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 2,388,649 shares. The stock had previously closed at $15.13.

Analysts Set New Price Targets

TALO has been the topic of several research analyst reports. Citigroup raised their price objective on Talos Energy from $16.00 to $20.00 and gave the company a "buy" rating in a research note on Tuesday, March 31st. Weiss Ratings reiterated a "sell (d)" rating on shares of Talos Energy in a research report on Monday, December 29th. Mizuho increased their target price on Talos Energy from $14.00 to $15.00 and gave the company a "neutral" rating in a research report on Tuesday, March 17th. Benchmark downgraded Talos Energy from a "buy" rating to a "hold" rating in a research report on Thursday, March 5th. Finally, Wall Street Zen upgraded Talos Energy from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $17.20.

Talos Energy Stock Down 5.5%

The company has a debt-to-equity ratio of 0.57, a current ratio of 1.30 and a quick ratio of 1.30. The stock has a market capitalization of $2.41 billion, a P/E ratio of -5.05 and a beta of 0.35. The firm has a 50-day simple moving average of $13.91 and a 200 day simple moving average of $11.81.

Talos Energy (NYSE:TALO - Get Free Report) last posted its earnings results on Tuesday, February 24th. The company reported ($0.44) EPS 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 quarter in the prior year, the business posted $0.08 earnings per share. Talos Energy's revenue for the quarter was down 19.2% compared to the same quarter last year. On average, equities research analysts forecast that Talos Energy Inc. will post -0.44 EPS for the current year.

Insider Activity

In other news, insider Control Empresarial De Capital sold 1,352,000 shares of the firm's stock in a transaction dated Friday, March 27th. The stock was 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 in the company, valued at $687,776,514.72. This trade represents a 3.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.36% of the stock is owned by company insiders.

Hedge Funds Weigh In On Talos Energy

A number of hedge funds have recently made changes to their positions in TALO. Royal Bank of Canada raised its position in shares of Talos Energy by 11.8% during the first quarter. Royal Bank of Canada now owns 28,590 shares of the company's stock worth $278,000 after acquiring an additional 3,007 shares during the last quarter. AQR Capital Management LLC raised its position in shares of Talos Energy by 152.1% during the first quarter. AQR Capital Management LLC now owns 90,915 shares of the company's stock worth $884,000 after acquiring an additional 54,854 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Talos Energy by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 86,196 shares of the company's stock worth $838,000 after acquiring an additional 3,783 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Talos Energy by 16.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,183,496 shares of the company's stock worth $21,224,000 after acquiring an additional 304,205 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in shares of Talos Energy by 132.7% during the second quarter. JPMorgan Chase & Co. now owns 386,641 shares of the company's stock worth $3,279,000 after acquiring an additional 220,502 shares during the last quarter. 89.35% of the stock is currently owned by institutional investors.

Talos Energy Company Profile

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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