Kosmos Energy (NYSE:KOS) Trading Down 6.1% on Disappointing Earnings

Kosmos Energy Ltd. (NYSE:KOS) shares dropped 6.1% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $3.07 and last traded at $3.07. Approximately 4,986,224 shares changed hands during trading, a decline of 80% from the average daily volume of 24,544,740 shares. The stock had previously closed at $3.27.

The oil and gas producer reported ($0.07) earnings per share for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.15). Kosmos Energy had a negative net margin of 54.18% and a negative return on equity of 39.29%.

Analyst Upgrades and Downgrades

KOS has been the topic of a number of analyst reports. Sanford C. Bernstein lowered their target price on shares of Kosmos Energy from $1.70 to $0.80 and set a “market perform” rating on the stock in a research note on Monday, January 5th. Johnson Rice raised shares of Kosmos Energy from an “accumulate” rating to a “buy” rating and set a $4.25 target price on the stock in a research note on Wednesday, March 25th. The Goldman Sachs Group cut shares of Kosmos Energy from a “neutral” rating to a “sell” rating and set a $2.25 target price on the stock. in a research note on Thursday, April 9th. Finally, Wall Street Zen cut shares of Kosmos Energy from a “hold” rating to a “sell” rating in a research note on Saturday, April 25th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Kosmos Energy has a consensus rating of “Reduce” and a consensus target price of $2.22.

Insider Activity

In other news, Director Adebayo O. Ogunlesi acquired 3,157,895 shares of the firm’s stock in a transaction on Tuesday, March 10th. The shares were purchased at an average cost of $1.90 per share, with a total value of $6,000,000.50. Following the completion of the purchase, the director owned 4,974,184 shares of the company’s stock, valued at $9,450,949.60. This represents a 173.87% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Nealesh D. Shah acquired 157,894 shares of the firm’s stock in a transaction on Tuesday, March 10th. The shares were purchased at an average cost of $1.90 per share, for a total transaction of $299,998.60. Following the completion of the purchase, the chief financial officer directly owned 1,863,061 shares of the company’s stock, valued at approximately $3,539,815.90. The trade was a 9.26% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders bought 3,684,210 shares of company stock valued at $6,999,999 and sold 75,915 shares valued at $107,799. 2.02% of the stock is currently owned by insiders.

Institutional Trading of Kosmos Energy

Several hedge funds have recently modified their holdings of the stock. Parallel Advisors LLC grew its stake in shares of Kosmos Energy by 41.0% during the third quarter. Parallel Advisors LLC now owns 24,634 shares of the oil and gas producer’s stock valued at $41,000 after purchasing an additional 7,169 shares during the last quarter. Orion Porfolio Solutions LLC grew its stake in shares of Kosmos Energy by 18.8% during the second quarter. Orion Porfolio Solutions LLC now owns 57,782 shares of the oil and gas producer’s stock valued at $99,000 after purchasing an additional 9,159 shares during the last quarter. SmartHarvest Portfolios LLC grew its stake in shares of Kosmos Energy by 73.0% during the first quarter. SmartHarvest Portfolios LLC now owns 23,814 shares of the oil and gas producer’s stock valued at $66,000 after purchasing an additional 10,050 shares during the last quarter. Equitable Holdings Inc. grew its stake in shares of Kosmos Energy by 30.3% during the fourth quarter. Equitable Holdings Inc. now owns 45,539 shares of the oil and gas producer’s stock valued at $41,000 after purchasing an additional 10,598 shares during the last quarter. Finally, Kestra Advisory Services LLC bought a new stake in shares of Kosmos Energy during the first quarter valued at approximately $31,000. 95.33% of the stock is owned by institutional investors.

Kosmos Energy Price Performance

The company has a debt-to-equity ratio of 5.53, a current ratio of 0.75 and a quick ratio of 0.45. The company’s 50 day moving average price is $2.62 and its 200 day moving average price is $1.75. The firm has a market capitalization of $1.44 billion, a P/E ratio of -2.05, a PEG ratio of 0.48 and a beta of 0.72.

Kosmos Energy Company Profile

Kosmos Energy Ltd. is an independent oil and gas exploration and production company headquartered in Dallas, Texas. Since its founding in 2003, the company has focused on identifying and developing hydrocarbon reserves in frontier and emerging basins around the world. Kosmos combines geological and geophysical expertise with a disciplined approach to acreage acquisition and partner selection to pursue high‐impact offshore exploration opportunities.

The company’s portfolio is anchored by assets in West Africa and the Gulf of Mexico.