Talos Energy Inc. (NYSE: TALO): Stock That Needs Special Handling


MacKay Shields LLC recently announced the acquisition of new stake in Talos Energy Inc. (NYSE:TALO). The institutional investor has increased its shareholding in the Energy company by 0.84% to 3.57 million shares with purchase of 29900.0 shares. This fresh investment now brings its stake to 5.47% valued currently at $43.42 million. In addition, Dimensional Fund Advisors LP raised its holdings by 0.18 million to 1.91 million shares. And The Vanguard Group, Inc. has lifted its position by 2.53% or 31564.0 shares – to 1.28 million shares.

With over 0.51 million Talos Energy Inc. (TALO) shares trading Thursday and a closing price of $9.01 on the day, the dollar volume was approximately $4.62 million. The shares have shown a negative weekly performance of -2.70% and its price on 07/02/20 gained nearly 3.21%. Currently, there are 58.24M common shares owned by the public and among those 39.14M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 7 analysts who have offered their price forecasts for TALO have a consensus price objective of $14.57. The analysts have set the share’s price value over the next 12 months at a high of $18.00 and a low of $12.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Talos Energy Inc. stock is 1.90 for the next 12 months. The average price target is 41.87% above its last price level and an upside to the estimated low will see the stock gain 24.92% over that period. But an upside of 49.94% will see the stock hit the forecast high price target while mean target price for the stock is $14.00.

Insiders at the company have transacted a total of 28 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 17 of these insider trades were purchases, accounting for 22,381,839 shares. Insider sales of the common stock occurred on 11 occasions, with total insider shares sold totaling 20,820 shares.

The top 3 mutual fund holders in Talos Energy Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and iShares Russell 2000 ETF. iShares Core S&P Small Cap ETF owns 1.21 million shares of the company’s stock, all valued at over $14.66 million. The company bought an additional 535.0 shares recently to bring their total holdings to about 1.85% of the shares outstanding. Vanguard Total Stock Market Index has total holdings of 0.53 million shares valued at over $6.5 million and representing 0.82% of the shares outstanding. iShares Russell 2000 ETF bought 4134.0 shares to bring its total holdings to over 0.42 million shares at a value of $5.06 million. iShares Russell 2000 ETF now owns shares totaling to 0.64% of the shares outstanding.

Shares of Talos Energy Inc. (NYSE: TALO) opened at $9.02, up $0.29 from a prior closing price of $8.73. However, the script later closed the day at $9.01, up 3.21%. The company’s stock has a 5-day price change of -2.70% and 50.42% over the past three months. TALO shares are trading -70.12% year to date (YTD), with the 12-month market performance down to -63.61% lower. It has a 12-month low price of $5.00 and touched a high of $31.34 over the same period. Currently, 0.51 million shares have been traded, compared to an average intraday trading volume of 595.80K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -23.53%, -21.31%, and -48.30% respectively.

Institutional ownership of Talos Energy Inc. (NYSE: TALO) shares is58.24M shares outstanding. Mutual fund holders own 18.09%, while other institutional holders and individual stakeholders account for 40.69% and 16.22% respectively.

It has a market capitalization of $570.42M . The stock’s trailing 12-month PE ratio is 1.56, while the earnings-per-share (ttm) stands at $5.79. The company has a Quick Ratio of 1.60 with the debt-to-equity ratio at 0.79. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.54% over the week and 9.43% over the month.

Analysts forecast that Talos Energy Inc. (TALO) will achieve an EPS of -$0.4 for the current quarter, -$0.23 for the next quarter and -$1.01 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.87 while analysts give the company a high EPS estimate of -$0.19. Comparatively, EPS for the current quarter was $1.74 a year ago. Earnings per share for the fiscal year are expected to decrease by -77.60%, and -207.40% over the next financial year. EPS over the next five years should compared to -28.30% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 7 brokerage firm advisors rate Talos Energy Inc. (TALO) as a “Strong Buy” at a consensus score of 1.90. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 0 of the 7 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the TALO, a number of firms have released research notes about the stock. MKM Partners stated their Buy rating for the stock in a research note on June 25, 2020, with the firm’s price target at $17. BMO Capital Markets coverage for the Talos Energy Inc. (TALO) stock in a research note released on June 04, 2020 offered a Outperform rating with a price target of $16. KeyBanc Capital Markets was of a view on April 14, 2020 that the stock is Overweight, while ROTH Capital gave the stock Neutral rating on March 13, 2020 . Guggenheim on their part issued Buy rating on February 11, 2019.


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