Is It Worthwhile For Investors To Follow These Insider Trades On Kosmos Energy Ltd. (KOS)?

Kosmos Energy Ltd. (NYSE:KOS) finished Thursday with a subtraction of -$0.12 to close at $6.84, a downside of -1.72 percent. An average of 3,455,700 shares of common stock have been traded in the last five days. There was a fall of -$0.47 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 5,107,130 shares traded, while the 50-day average volume stands at 5,445,722.

KOS stock has decreased by -2.43% in the last month. The company shares reached their 1-month lowest point of $6.38 on 08/07/23. With the stock rallying to its 52-week high on 02/27/23, shares of the company touched a low of $4.64 and a high of $8.55 in 52 weeks. It has reached a new high 11 times so far this year and achieved 7.55% or $0.48 in price. In spite of this, the price is down -20.00% from the 52-week high.

Insider Transactions

KOS stock investors should be aware that Kosmos Energy Ltd. (KOS) stock had its last reported insider trading activity 77 days ago on Jun 09. In this transaction, the insider spent $749,280. Director, Franklin Roy A., disposed of 8,000 shares at a price of $6.80 on Jun 09. The insider now owns more than $54,400 worth of shares. Prior to that, Director Dearlove Sir Richard Billing went on to Sale 147,000 shares at $6.65 each on Nov 10. An amount of $977,771 was transacted.

Valuation Metrics

Kosmos Energy Ltd. (KOS) has a trailing price-to-earnings (P/E) ratio of 15.62. The stock’s beta is 2.76. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.90, the price-to-book (PB) ratio at 3.47.

Financial Health

The quick ratio of Kosmos Energy Ltd. for the three months ended June 29 was 0.40, and the current ratio was 0.80, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.61 and a total debt to equity ratio of 2.63 for the quarter ending June 29. Its gross profit as reported stood at $1.16 billion compared to revenue of $2.3 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Kosmos Energy Ltd.’s return on assets was 4.50%.

Earnings Surprise

For the three-month period that ended June 29, Kosmos Energy Ltd. had $2.36 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $23.35 million in the quarter, while revenues of $83.31 million were shrunk -401.8%. The analyst consensus anticipated Kosmos Energy Ltd.’s latest quarter earnings to come in at $0.09 per share, but it turned out to be $0.06, a -33.30% surprise. For the quarter, EBITDA amounted to $177.81 million. Shareholders own equity worth $460.11 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Kosmos Energy Ltd. (KOS) price momentum. RSI 9-day as of the close on 24 August was 34.80%, suggesting the stock is Neutral, with historical volatility in this time frame at 27.38%.

As of today, KOS’s price is $7.16 -6.43% or -$0.47 from its 5-day moving average. KOS is currently trading +0.15% higher than its 20-day SMA and -8.06% lower than its 100-day SMA. However, the stock’s current price level is +6.21% above the SMA50 and +0.29% above the SMA200.

The stochastic %K and %D were 53.44% and 66.25%, respectively, and the average true range (ATR) was 0.26. With the 14-day stochastic at 38.41% and the average true range at 0.27, the RSI (14) stands at 43.55%. The stock has reached -0.19 on the 9-day MACD Oscillator while the 14-day reading was at -0.25.

Analyst Ratings

Redburn launched coverage on Kosmos Energy Ltd. (NYSE: KOS) in its analyst report released on July 20, 2023. The firm assigned the stock a Buy rating.

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