Kosmos Energy (NYSE:KOS) Shares Gap Down on Disappointing Earnings

Shares of Kosmos Energy Ltd. (NYSE:KOS) gapped down prior to trading on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $2.85, but opened at $2.55. Kosmos Energy shares last traded at $2.46, with a volume of 5,410,066 shares changing hands.

The oil and gas producer reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.07). The firm had revenue of $410.06 million during the quarter, compared to analysts’ expectations of $466.11 million. Kosmos Energy had a negative return on equity of 17.73% and a negative net margin of 33.98%.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Kosmos Energy in a report on Friday. Wall Street Zen downgraded shares of Kosmos Energy from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Mizuho upgraded shares of Kosmos Energy to a “strong sell” rating in a report on Friday, July 31st. Stephens lowered their price objective on shares of Kosmos Energy from $3.00 to $2.40 and set an “equal weight” rating for the company in a research report on Tuesday, July 21st. Finally, Jefferies Financial Group downgraded shares of Kosmos Energy from a “buy” rating to a “hold” rating and lifted their target price for the company from $2.75 to $2.90 in a report on Wednesday, October 28th. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and an average target price of $2.37.

Institutional Investors Weigh In On Kosmos Energy

A number of hedge funds have recently added to or reduced their stakes in KOS. First Trust Advisors LP grew its stake in shares of Kosmos Energy by 9.2% in the first quarter. First Trust Advisors LP now owns 7,694,248 shares of the oil and gas producer’s stock worth $21,390,000 after acquiring an additional 646,052 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Kosmos Energy by 20.5% in the first quarter. Dimensional Fund Advisors LP now owns 7,083,075 shares of the oil and gas producer’s stock valued at $19,699,000 after acquiring an additional 1,204,789 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Kosmos Energy by 14.2% in the first quarter. Bank of America Corp DE now owns 5,541,020 shares of the oil and gas producer’s stock valued at $15,404,000 after acquiring an additional 689,800 shares in the last quarter. Renaissance Technologies LLC raised its stake in shares of Kosmos Energy by 224.0% in the first quarter. Renaissance Technologies LLC now owns 5,339,638 shares of the oil and gas producer’s stock valued at $14,844,000 after acquiring an additional 3,691,800 shares in the last quarter. Finally, Algert Global LLC boosted its holdings in Kosmos Energy by 98.2% in the second quarter. Algert Global LLC now owns 2,490,698 shares of the oil and gas producer’s stock valued at $5,255,000 after purchasing an additional 1,233,831 shares during the period. 95.33% of the stock is currently owned by institutional investors and hedge funds.

Kosmos Energy Stock Performance

The stock has a market capitalization of $1.48 billion, a PE ratio of -2.09, a price-to-earnings-growth ratio of 0.17 and a beta of 0.78. The stock has a fifty day moving average of $2.76 and a 200-day moving average of $2.50. The company has a quick ratio of 0.38, a current ratio of 0.59 and a debt-to-equity ratio of 3.58.

About Kosmos Energy

Kosmos Energy Ltd. (NYSE: KOS) is an independent energy company engaged in the exploration, development and production of oil and natural gas. The company focuses primarily on offshore assets and seeks to develop resources in partnership with national oil companies, international energy companies and other industry participants.

Kosmos has historically operated across several regions, including offshore Ghana, Equatorial Guinea, Mauritania and Senegal, as well as the U.S. Gulf of Mexico.