Why Kosmos Energy Ltd. (KOS) Stock Was Rallying Today

What just happened? Kosmos Energy Ltd. (NYSE:KOS) stock value has climbed by nearly 13.79% or (0.11 points) to $0.92 from its previous close of $0.81. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 7368543 contracts so far this session. KOS shares had a relatively better volume day versus average trading capacity of 9.22 million shares, but with a 0.39 billion float and a 16.93% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for KOS stock indicates that the average analyst price target is $4.5 per share. This means the stock has a potential increase of 389.13% from where the KOS share price has been trading recently.

During the recent trading session for Kosmos Energy Ltd. (NYSE:KOS), the company witnessed their stock rise $0.3538 over a week and tumble down $-2.5003 from the price 20 days ago. When compared to their established 52-week high of $7.55, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 12/11/19. The recent low of $0.501 stood for a -87.77% since 03/18/20, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.94 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Kosmos Energy Ltd., the two-week RSI stands at 25.74. This figure suggests that KOS stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current KOS readings is similarly very revealing as it has a stochastic reading of 14.99% at this stage. This figure means that KOS share price today is being overbought.

Technical chart claims that Kosmos Energy Ltd. (KOS) would settle between $0.8453/share to $0.8791/share level. However, if the stock price goes below the $0.7654 mark, then the market for Kosmos Energy Ltd. becomes much weaker. If that happens, the stock price might even plunge as low as $0.7193 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.0739. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Raymond James lowered their recommendation on shares of KOS from Outperform to Mkt Perform in their opinion released on March 17. RBC Capital Mkts analysts have lowered their rating of Kosmos Energy Ltd. (NYSE:KOS) stock from Outperform to Underperform in a separate flash note issued to investors on March 16. Analysts at Bernstein lowered the stock to a Mkt Perform call from its previous Outperform recommendation, in a research note that dated back to February 26.

KOS equity has an average rating of 1.73, with the figure leaning towards a bullish end. 11 analysts who tracked the company were contacted by Reuters. Amongst them, 3 rated the stock as a hold while the remaining 8 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 7 analysts rated Kosmos Energy Ltd. (NYSE:KOS) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, KOS stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 81.9. Kosmos Energy Ltd. current P/B ratio of 0.4 means it is trading at a discount against its industry’s 0.5.

Kosmos Energy Ltd. (KOS)’s current-quarter revenues are projected to climb by nearly -20.3% to hit $236610, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over -20.9% from $1.51 billion to a noteworthy $1.19 billion. At the other end of the current quarter income statement, Kosmos Energy Ltd. is expected to see its adjusted earnings surge by roughly -116.7% to hit $-0.13 per share. For the fiscal year, KOS’s earnings are projected to climb by roughly -1240% to hit $-0.67 per share.