Kosmos Energy Ltd [NYSE: KOS] gained 1.23% on the last trading session, reaching $5.77 price per share at the time. The company report on March 6, 2024 at 2:00 AM that Kosmos Energy Ltd. Prices Upsized Offering of $350 Million 3.125% Convertible Senior Notes Due 2030.
Kosmos Energy Ltd. (NYSE/LSE: KOS) (“Kosmos” or the “Company”), announced today that it has priced a private offering of $350 million aggregate principal amount of its 3.125% convertible senior notes due 2030 (the “notes”), which represents a $50 million increase in principal amount from the previously announced offering size. The Company also granted the initial purchasers an option to purchase up to an additional $50 million aggregate principal amount of notes, for settlement within a 13-day period beginning on, and including, the date on which the notes are first issued. The offering is expected to close on March 8, 2024, subject to customary closing conditions.
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The notes will be senior, unsecured obligations of the Company. The notes will rank pari passu with the Company’s existing senior notes and the Company’s revolving credit facility. The notes will be guaranteed (i) on a senior, unsecured basis by certain of the Company’s existing subsidiaries that guarantee on a senior basis the Company’s revolving credit facility and the Company’s existing senior notes, and (ii) on a subordinated, unsecured basis by certain of the Company’s existing subsidiaries that borrow under or guarantee the Company’s commercial debt facility and guarantee on a subordinated basis the Company’s revolving credit facility and the Company’s existing senior notes. Upon conversions of the notes, the Company will satisfy its conversion obligation by paying cash up to the aggregate principal amount of the notes to be converted, and paying or delivering, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the notes to be converted. The notes will have an initial conversion rate of 142.4501 shares of the Company’s common stock per $1,000 principal amount of notes (which is subject to adjustment in certain circumstances). This is equivalent to an initial conversion price of approximately $7.02 per share. The initial conversion price represents a premium of approximately 30.0% to the $5.40 per share closing price of the Company’s common stock on The New York Stock Exchange on March 5, 2024.
If compared to the average trading volume of 6.57M shares, KOS reached a trading volume of 6944919 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Kosmos Energy Ltd [KOS]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for KOS shares is $8.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on KOS stock is a recommendation set at 1.36. 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.
Stifel have made an estimate for Kosmos Energy Ltd shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 20, 2023. While these analysts kept the previous recommendation, Bernstein raised their target price from $12 to $9. The new note on the price target was released on October 17, 2023, representing the official price target for Kosmos Energy Ltd stock. Previously, the target price had yet another raise from $8.70 to $10, while BofA Securities kept a Buy rating on KOS stock.
The Average True Range (ATR) for Kosmos Energy Ltd is set at 0.26, with the Price to Sales ratio for KOS stock in the period of the last 12 months amounting to 1.58. The Price to Book ratio for the last quarter was 2.57, with the Price to Cash per share for the same quarter was set at 0.20.
Trading performance analysis for KOS stock
Kosmos Energy Ltd [KOS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.15. With this latest performance, KOS shares dropped by -3.83% in over the last four-week period, additionally sinking by -19.64% over the last 6 months – not to mention a drop of -9.42% 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 KOS stock in for the last two-week period is set at 49.33, with the RSI for the last a single of trading hit 51.96, and the three-weeks RSI is set at 47.83 for Kosmos Energy Ltd [KOS]. The present Moving Average for the last 50 days of trading for this stock 5.99, while it was recorded at 5.66 for the last single week of trading, and 6.68 for the last 200 days.
Kosmos Energy Ltd [KOS]: A deeper dive into fundamental analysis
Kosmos Energy Ltd’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.49 and a Current Ratio set at 0.76.
Kosmos Energy Ltd [KOS]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Kosmos Energy Ltd posted 0.16/share EPS, while the average EPS was predicted by analysts to be reported at 0.17/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -5.90%. 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 KOS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Kosmos Energy Ltd go to 23.80%.
An analysis of Institutional ownership at Kosmos Energy Ltd [KOS]
The top three institutional holders of KOS stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in KOS stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in KOS stock with ownership which is approximately 5.8325%.
