Dimensional Fund Advisors LP, an investment management firm that manages around $527.09 billion in assets, has recently increased its stake in Talos Energy Inc. Stocks of the NYSE-listed energy firm were acquired by 10.7% during the fourth quarter, according to information provided in the company’s most recent Form 13F filing with the Securities & Exchange Commission on May 26, 2023.
The reported data showed that Dimensional Fund Advisors LP increased their ownership of Talos Energy by acquiring an additional 358,598 shares of the company’s stock during the period, bringing their total share count to 3,699,089 shares. Based on estimates, it can be inferred that the holdings have a value of $69,839,000 for shareholders at the end of the last quarter.
Talos Energy Inc. is a holding company primarily involved in exploring and producing oil and natural gas through shallow and deepwater assets situated near existing infrastructure within the United States Gulf of Mexico. It was founded by John A., who had significant experience working across numerous energy corporations before venturing out on his own.
As per market data available on May 26, 2023, shares of Talos Energy closed at $12.80 after opening at $12.45 earlier in the day. The stock had a one year low of $10.69 and a one year high of $25.49 and currently dictates a market capitalization of approximately $1.61 billion alongside having a PE ratio standing at roughly two times earnings while maintaining a beta coefficient that hovers around 2.21.
Balance sheets indicate that Talos Energy operates with optimal liquidity ratios as reflected in both their current ratio and quick ratio which stands at approximately 0.61 each while their debt-to-equity reckons average industry standards sitting handsomely at about 0.47.
The business has been gearing up for higher valuation in the long term by undertaking rigorous efforts to maintain investor confidence in the company’s vision and capabilities especially during challenging times within the industry. The overall strategy involves focusing on core competencies, risk management as well as fostering innovation with an aim to expand their operations into new territories where market opportunities arise while at the same time mitigating risks posed alongside such ventures.
In conclusion, Dimensional Fund Advisors LP, through its increased holding of Talos Energy Inc. shares, seems confident that the company’s future outlook is promising. Whether or not this will trigger a likely upward stock trend for Talos Energy remains to be seen; however, with its robust balance sheets emboldened by a culture focused on expansion and innovation despite energy sector headwinds, it appears that Talos Energy may offer shareholders ample opportunity for prosperity in upcoming years.
Hedge Fund Activity and Analyst Ratings Impact Talos Energy Inc.
Talos Energy Inc. – An Overview of Hedge Fund Activity and Analyst Ratings
As of May 26, 2023, Talos Energy is in the limelight due to some striking developments in hedge fund activity and analysts’ ratings. According to recent reports, a plethora of hedge funds has bought and sold shares of Talos Energy. BlackRock Inc., State Street Corp, Vanguard Group Inc., Pacer Advisors Inc., and Two Sigma Advisers LP have grown their holdings in Talos Energy by an average percentage ranging from 2.9% to 105.6%. Now BlackRock owns 10,895,460 shares, State Street holds 4,778,009 shares, Vanguard owns 6,618,049 shares while Pacer Advisors and Two Sigma Advisers hold 1,435903 shares and1,345420 shares respectively.
Further analysis reveals that institutional investors own around 96.24% of the company’s share while hedge funds hold only around 0.79%, demonstrating a more significant degree of trust among the former.
Six equities research analysts have rated the stock with a “buy” rating. The current consensus rating for Talos Energy is “Buy,” and an average price target of $25.40 was set based on Bloomberg.com data. Roth Capital has reissued a “buy” rating while KeyCorp lifted its price target from $18 to $21 on April 21st.
Talos Energy is an exploration company whose focus is mainly on drilling activities concerning shallow water or assets near existing infrastructure in the US Gulf of Mexico area. Founded by John A., the firm engages primarily in production activities related to oil and natural gas.
While on one hand there were positive reports about TALO’s growth from institutional investors on March; as per report published by TheStreet yesterday (28th May) released their report suggesting that TALO faces some grave concerns with respect to a drop in rating from a ‘b-‘ rating to ‘c’. The entity is reported to have released some information that has caused this shift.
There were also news of shares being sold by major shareholder Bcc Enven Investments (S), L.P. where the latter had let go of 363,804 shares of Talos Energy stock in a transaction dated Thursday, April 20th at an average price of $14.50, amounting to a total transaction value of $5,275,158.00. As per reports following the completion of the sale, Bcc Enven Investment (S), L.P now owns only 15,145,377 shares in Talos Energy valued at approximately $219,607,966.50.
Talos Energy last announced its quarterly earnings data on February 28th where It had missed analyst consensus estimates for EPS with having reported only $0.15 as opposed to the estimated earning of $0.57 by ($0.42). However, it had managed to curve out revenue figures that were close enough at $342 million over analysts predicted revenue figures of$350 million.
These moves in hedge funds activity and analysts’ ratings suggest that there are indeed some uncertainties surrounding Talos Energy at this moment in time — however cautiously attaching optimism as there might be other factors that these actions have been prompted due to and May Performance report can shed more light on their business health.
In conclusion amidst significant hedge fund activity and mixed analyst ratings around Talos Energy’s current state-of-affairs suggest investors need to be cautious with their investments in TALO keeping both short and long-term performance metrics under consideration while making any crucial investment decisions concerning TALO stocks’.
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