Talos Energy (NYSE:TALO) Shares Gap Down - What's Next?

Key Points

• Gapped down: Talos shares fell about 9.6%
• Earnings miss: Q4 EPS was ($0.44) vs. ($0.27) expected and revenue was $392.2M vs. $431.2M est., a 19.2% decline year‑over‑year with negative net margin and ROE.
• Mixed outlook and insider selling: Analysts are split (three Buy, three Hold, one Sell) with a consensus “Hold” and $17.20 average target, while insider Control Empresarial De Capital sold 1.352M shares at $16.68 and institutions own ~89.35% of the stock.

Talos Energy Inc. (NYSE:TALO - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $14.76, but opened at $13.87. Talos Energy shares last traded at $13.2290, with a volume of 181,364 shares traded.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Weiss Ratings reiterated a "sell (d)" rating on shares of Talos Energy in a research report on Monday, December 29th. KeyCorp upped their price objective 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 target price 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. Mizuho upped their price target on shares of Talos Energy from $14.00 to $15.00 and gave the company a "neutral" rating in a research report on Tuesday, March 17th. Finally, Benchmark lowered shares of Talos Energy from a "buy" rating to a "hold" rating in a research note on Thursday, March 5th. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $17.20.

Talos Energy Trading Down 9.6%

The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.30 and a current ratio of 1.30. The stock has a market cap of $2.25 billion, a price-to-earnings ratio of -4.71 and a beta of 0.35. The company's 50 day simple moving average is $14.05 and its two-hundred day simple moving average is $11.88.

Talos Energy (NYSE:TALO - Get Free Report) last announced its quarterly 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 period in the previous year, the firm posted $0.08 EPS. The company's quarterly revenue was down 19.2% compared to the same quarter last year. Research analysts expect that Talos Energy Inc. will post -0.44 EPS for the current fiscal year.

Insider Buying and Selling

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 value of $22,551,360.00. Following the sale, the insider directly owned 41,233,604 shares of the company's stock, valued at approximately $687,776,514.72. This trade represents a 3.17% decrease in their ownership of the stock. The sale 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 company insiders.

Institutional Trading of Talos Energy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sourcerock Group LLC boosted its holdings in Talos Energy by 11.0% during the second quarter. Sourcerock Group LLC now owns 11,193,177 shares of the company's stock valued at $94,918,000 after purchasing an additional 1,110,685 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Talos Energy by 1.8% in the 3rd quarter. Vanguard Group Inc. now owns 9,526,431 shares of the company's stock worth $91,358,000 after buying an additional 164,999 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Talos Energy by 4.0% during the 4th quarter. Dimensional Fund Advisors LP now owns 8,967,001 shares of the company's stock worth $98,819,000 after buying an additional 345,765 shares during the period. American Century Companies Inc. lifted its position in shares of Talos Energy by 8.6% during the 3rd quarter. American Century Companies Inc. now owns 5,765,905 shares of the company's stock worth $55,295,000 after buying an additional 455,409 shares during the period. Finally, Geode Capital Management LLC boosted its stake in Talos Energy by 4.9% in the 4th quarter. Geode Capital Management LLC now owns 3,055,968 shares of the company's stock valued at $33,682,000 after buying an additional 141,518 shares in the last quarter. Institutional investors own 89.35% of the company's stock.

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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