Talos Energy (NYSE:TALO) Shares Gap Up After Analyst Upgrade

Key Points

• Shares gapped up after KeyCorp raised its price target from $15 to $21 and kept an overweight rating; the stock opened at $15.81 versus the prior close of $14.93 and last traded near $15.93.
• Analyst views are mixed — three Buy, two Hold and one Sell — producing a consensus rating of Hold and an average price target of $17.50.
• Talos missed quarterly EPS (‑$0.44 vs. ‑$0.27 expected), reported revenue down 19.2% year‑over‑year and negative net margins, indicating continued operational weakness despite high institutional ownership (~89%).

Talos Energy Inc. (NYSE:TALO - Get Free Report) shares gapped up before the market opened on Thursday after KeyCorp raised their price target on the stock from $15.00 to $21.00. The stock had previously closed at $14.93, but opened at $15.81. KeyCorp currently has an overweight rating on the stock. Talos Energy shares last traded at $15.9330, with a volume of 211,736 shares traded.

A number of other research analysts have also recently issued reports on TALO. Wall Street Zen cut shares of Talos Energy from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Citigroup raised their target price on Talos Energy from $16.00 to $20.00 and gave the company a "buy" rating in a report on Tuesday. Benchmark lowered Talos Energy from a "buy" rating to a "hold" rating in a research note on Thursday, March 5th. Mizuho boosted 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. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Talos Energy in a research report on Monday, December 29th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $17.50.

Institutional Trading of Talos Energy

Hedge funds have recently added to or reduced their stakes in the stock. Virtus Fixed Income Advisers LLC bought a new stake in shares of Talos Energy in the second quarter worth $25,000. Larson Financial Group LLC raised its position in Talos Energy by 142.9% during the 3rd quarter. Larson Financial Group LLC now owns 3,301 shares of the company's stock worth $32,000 after purchasing an additional 1,942 shares during the last quarter. Smartleaf Asset Management LLC lifted its holdings in Talos Energy by 134.4% during the 2nd quarter. Smartleaf Asset Management LLC now owns 3,703 shares of the company's stock worth $32,000 after buying an additional 2,123 shares during the period. Quarry LP acquired a new position in Talos Energy during the 3rd quarter worth about $36,000. Finally, PNC Financial Services Group Inc. grew its position in shares of Talos Energy by 22.7% in the 3rd quarter. PNC Financial Services Group Inc. now owns 5,679 shares of the company's stock valued at $54,000 after buying an additional 1,049 shares during the last quarter. Institutional investors and hedge funds own 89.35% of the company's stock.

Talos Energy Price Performance

The stock has a market cap of $2.65 billion, a P/E ratio of -5.61 and a beta of 0.54. The business has a 50-day simple moving average of $13.32 and a 200 day simple moving average of $11.48. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.57.

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

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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