Talos Energy Inc. [NYSE: TALO] traded at a low on 12/21/20, posting a -4.40 loss after which it closed the day’ session at $8.03. The company report on December 18, 2020 that Talos Energy Announces Pricing Of Upsized Offering Of $500 Million Of Second-Priority Senior Secured Notes Due 2026.
Talos Energy Inc. (“Talos Energy”) (NYSE: TALO) announced that Talos Production Inc. (the “Company”), a wholly owned subsidiary of Talos Energy, has priced an upsized offering (the “Offering”) of $500 million in aggregate principal amount of new 12.00% Second-Priority Senior Secured Notes due 2026 (the “New Notes”). The Company intends to use the net proceeds from the Offering to (i) fund the redemption (the “Redemption”) of all of the outstanding 11.00% Second-Priority Senior Secured Notes due 2022 issued by the Company and Talos Production Finance Inc. (the “2022 Notes”) and (ii) pay any premiums, fees and expenses related to the Redemption and the issuance of the New Notes. The Company intends to use any remaining net proceeds for general corporate purposes, which may include the repayment of a portion of the outstanding borrowings under its reserves-based lending facility. The Offering is expected to close on or about January 4, 2021, subject to customary closing conditions.
The New Notes are being offered in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside the United States only in compliance with Regulation S under the Securities Act. The New Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
The results of the trading session contributed to over 1390096 shares changing hands. Over the past one week, the price volatility of Talos Energy Inc. stands at 5.02% while the volatility over the past one month is 7.01%.
The market cap for TALO stock reached $679.90 million, with 71.29 million shares outstanding and 46.29 million shares in the current float. Compared to the average trading volume of 861.26K shares, TALO reached a trading volume of 1390096 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Talos Energy Inc. [TALO]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TALO shares is $13.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TALO stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
KeyBanc Capital Markets have made an estimate for Talos Energy Inc. shares, keeping their opinion on the stock as Sector Weight, with their previous recommendation back on December 09, 2020. The new note on the price target was released on September 14, 2020, representing the official price target for Talos Energy Inc. stock. Previously, the target price had yet another raise to $17, while Stifel analysts kept a Buy rating on TALO stock.
The Average True Range (ATR) for Talos Energy Inc. is set at 0.71, with the Price to Sales ratio for TALO stock in the period of the last 12 months amounting to 1.05. The Price to Book ratio for the last quarter was 0.45, with the Price to Cash per share for the same quarter was set at 0.84.
How has TALO stock performed recently?
Talos Energy Inc. [TALO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -12.81. With this latest performance, TALO shares dropped by -3.25% in over the last four-week period, additionally sinking by -19.62% over the last 6 months – not to mention a drop of -71.91% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TALO stock in for the last two-week period is set at 44.81, with the RSI for the last a single of trading hit 38.59, and the three-weeks RSI is set at 47.91 for Talos Energy Inc. [TALO]. The present Moving Average for the last 50 days of trading for this stock 7.89, while it was recorded at 8.57 for the last single week of trading, and 8.39 for the last 200 days.
Talos Energy Inc. [TALO]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Talos Energy Inc. [TALO] shares currently have an operating margin of +25.33 and a Gross Margin at +32.83. Talos Energy Inc.’s Net Margin is presently recorded at +6.33.
Return on Total Capital for TALO is now 13.15, given the latest momentum, and Return on Invested Capital for the company is 3.31. Return on Equity for this stock inclined to 5.63, with Return on Assets sitting at 2.32. When it comes to the capital structure of this company, Talos Energy Inc. [TALO] has a Total Debt to Total Equity ratio set at 77.10. Additionally, TALO Total Debt to Total Capital is recorded at 43.53, with Total Debt to Total Assets ending up at 32.10. Long-Term Debt to Equity for the company is recorded at 75.33, with the Long-Term Debt to Total Capital now at 42.53.
Reflecting on the efficiency of the workforce at the company, Talos Energy Inc. [TALO] managed to generate an average of $133,475 per employee. Receivables Turnover for the company is 6.52 with a Total Asset Turnover recorded at a value of 0.37.Talos Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.60.
Earnings analysis for Talos Energy Inc. [TALO]
With the latest financial reports released by the company, Talos Energy Inc. posted 0.01/share EPS, while the average EPS was predicted by analysts to be reported at 0.53/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -98.10%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TALO.
Insider trade positions for Talos Energy Inc. [TALO]
There are presently around $573 million, or 88.40% of TALO stock, in the hands of institutional investors. The top three institutional holders of TALO stocks are: RIVERSTONE HOLDINGS LLC with ownership of 25,581,695, which is approximately 0% of the company’s market cap and around 0.10% of the total institutional ownership; APOLLO MANAGEMENT HOLDINGS, L.P., holding 19,191,451 shares of the stock with an approximate value of $154.11 million in TALO stocks shares; and CARLYLE GROUP INC., currently with $39.83 million in TALO stock with ownership of nearly 0% of the company’s market capitalization.
Positions in Talos Energy Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 69 institutional holders increased their position in Talos Energy Inc. [NYSE:TALO] by around 3,465,041 shares. Additionally, 56 investors decreased positions by around 4,908,210 shares, while 26 investors held positions by with 62,957,500 shares. The mentioned changes placed institutional holdings at 71,330,751 shares, according to the latest SEC report filing. TALO stock had 17 new institutional investments in for a total of 636,902 shares, while 25 institutional investors sold positions of 3,150,678 shares during the same period.