What Are These 2 Stocks Telling Us? – Kosmos Energy Ltd. (KOS), Evofem Biosciences Inc. (EVFM)

Kosmos Energy Ltd. (NYSE: KOS) shares are -73.16% down in the year-to-date (YTD) period and have moved 4.79% or $0.07 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +205.39% lower. Comparatively, the stock is -77.47% down YTD and -20.73% over the trailing 3-month period. If we look at the shorter duration, its week performance is 1.32% and -2.55% over the month.

Analyst Recommendations

On May 13, 2020, RBC Capital Mkts recommended the KOS stock is a Sector Perform, while earlier, Goldman had Downgrade the stock as a Neutral on May 14, 2020. 13 analysts offering the recommendations for the stock have a consensus rating of 2.40 to suggest that the KOS stock is a “Moderate Buy. 0 of the 13 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 5 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.53. The forecasts give the Kosmos Energy Ltd. stock a price target range of $4.50 on the higher side while at least one analyst think the stock could plunge to a low of $1.40. The two limits represent an upside potential of 66.0% or -9.29%.

Earnings Forecast

Analysts estimate the earnings to increase 30.30% in the current quarter to -$0.17, down from the $0.04 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.74, down -46.30% from -$0.05 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.32 and -$0.05. Wall Street estimates earnings per share to be at an average of -$0.3 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 20 over the last 12 months, while SEC filings reveal that there have been 16 insider sales over the same period. Insiders have purchases 1,804,882 shares while those sold by company executives and officers stand at 414,445. The last 3 months have seen insiders trade a total of 354,170 and 0 in purchases and sales respectively.

Clark Richard Ryan, a SVP,Pres.Gulf of Mexico Unit at the company, bought 25,000 shares worth $28750.0 at $1.15 per share on Mar 11. The VP & Chief Accounting Officer had earlier bought another 10,000 KOS shares valued at $10099.0 on Mar 13. The shares were bought at $1.01 per share. INGLIS ANDREW G (Chairman and CEO) bought 300,000 shares at $1.06 per share on Mar 10 for a total of $0.32 million while Sterin Steven, (Director) bought 50,000 shares on Mar 06 for $0.1 million with each share fetching $2.10.

Evofem Biosciences Inc. (NASDAQ:EVFM), on the other hand, is trading around $3.13 with a market cap of $247.11M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$1.97 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Evofem Biosciences Inc. (EVFM) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

EVFM’s operating expenses over the recent quarter were at -$52.67 million. This represented a 335.41% of the company’s total revenues which amounted $22.37 million. With this in place, we can see that the company’s diluted EPS declined -$0.91 on the year-over-year period, shrinking to -$0.97 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $135.06 million from $15.64 million over the previous quarter. The cash flow from operating activities totaled -$29.93 million, significantly lower than the -$27.23 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$30.46 million.

Insider activity

Insiders have transacted a total of 29 times at Evofem Biosciences Inc. over the last 6 months, with insider purchases undertaken 8 times and accounting for 1,001,406 shares. Insider sales totaled 576,398 shares over the same period, with these deals completed in 21 transactions. Looking at these numbers, we realize that net purchases over that period are -13.0 shares. Insiders now hold a total of 25.17M shares after the latest sales, with -40.90% net shares purchased.

Major holders

Insiders own 2.00% of the company shares, while shares held by institutions stand at 51.60% with a share float percentage of 80.00M. Investors are also buoyed by the number of investors in a company, with Evofem Biosciences Inc. having a total of 68 institutions that hold shares in the company. The top two institutional holders are Invesco Ltd. with over 12.67 million shares worth more than $35.86 million. As of Jun 29, 2020, Invesco Ltd. held 15.59% of shares outstanding.

The other major institutional holder is Morgan Stanley, with the investment firm holding over 3.05 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $8.64 million and represent 3.76% of shares outstanding.