Talos Energy (NYSE:TALO) Shares Gap Down After Earnings Miss

Talos Energy Inc. (NYSE:TALO)’s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $13.13, but opened at $11.56. Talos Energy shares last traded at $11.5320, with a volume of 1,044,297 shares.

The company reported ($0.44) earnings per share for the quarter, missing the consensus estimate of ($0.27) by ($0.17). The company had revenue of $392.24 million during the quarter, compared to the consensus estimate of $431.22 million. Talos Energy had a negative net margin of 27.77% and a negative return on equity of 6.59%. The business’s revenue for the quarter was down 19.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.08 EPS.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on TALO shares. Mizuho raised their price target on shares of Talos Energy from $11.00 to $14.00 and gave the stock a “neutral” rating in a report on Friday, December 12th. Citigroup increased their target price on shares of Talos Energy from $12.00 to $14.00 and gave the stock a “buy” rating in a report on Friday, January 23rd. Weiss Ratings restated a “sell (d)” rating on shares of Talos Energy in a report on Monday, December 29th. Wall Street Zen raised Talos Energy from a “sell” rating to a “hold” rating in a research report on Saturday, February 14th. Finally, KeyCorp lifted their price objective on Talos Energy from $12.00 to $13.50 and gave the stock an “overweight” rating in a research report on Friday, December 5th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $13.50.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Royal Bank of Canada grew its holdings in Talos Energy by 11.8% in the first quarter. Royal Bank of Canada now owns 28,590 shares of the company’s stock worth $278,000 after purchasing an additional 3,007 shares during the period. AQR Capital Management LLC increased its position in Talos Energy by 152.1% during the 1st quarter. AQR Capital Management LLC now owns 90,915 shares of the company’s stock valued at $884,000 after buying an additional 54,854 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Talos Energy by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 86,196 shares of the company’s stock valued at $838,000 after buying an additional 3,783 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Talos Energy by 16.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,183,496 shares of the company’s stock valued at $21,224,000 after buying an additional 304,205 shares during the last quarter. Finally, CWM LLC boosted its holdings in Talos Energy by 186.3% in the second quarter. CWM LLC now owns 6,027 shares of the company’s stock worth $51,000 after acquiring an additional 3,922 shares in the last quarter. 89.35% of the stock is owned by hedge funds and other institutional investors.

Talos Energy Stock Performance

The stock has a market capitalization of $1.97 billion, a PE ratio of -4.07 and a beta of 0.58. The business has a 50 day moving average price of $11.78 and a 200 day moving average price of $10.60. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.30 and a quick ratio of 1.27.

Talos Energy Company Profile

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company’s core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy’s asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.