Comstock Resources (NYSE:CRK) Cut to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Comstock Resources to “strong sell” from “sell.” The broader analyst consensus is “Reduce,” with 10 Hold ratings, five Sell ratings, and an average price target of $15.
• CRK opened at $13.98 after recently trading up 3.6%, remaining near the lower end of its $12.12–$28.10 52-week range. The company reported quarterly EPS of $0.03, beating estimates, but revenue of $353.28 million fell short of expectations and declined 24.9% year over year.
• Institutional investors and hedge funds own 36.13% of Comstock Resources, with BlackRock purchasing an approximately $176.6 million stake during the second quarter.

Comstock Resources (NYSE:CRK - Get Free Report) was downgraded by analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other brokerages have also issued reports on CRK. Citigroup reduced their price objective on shares of Comstock Resources from $19.00 to $16.00 and set a "neutral" rating on the stock in a report on Monday, July 20th. Jefferies Financial Group started coverage on shares of Comstock Resources in a research note on Friday, September 25th. They set a "hold" rating and a $14.00 target price for the company. The Goldman Sachs Group lifted their price target on shares of Comstock Resources from $9.00 to $15.00 and gave the company a "sell" rating in a research report on Wednesday, September 2nd. Zacks Research cut shares of Comstock Resources from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 16th. Finally, Truist Financial initiated coverage on shares of Comstock Resources in a research note on Thursday, September 17th. They issued a "hold" rating and a $16.00 price target on the stock. Ten research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $15.00.

Comstock Resources Trading Up 3.6%

CRK opened at $13.98 on Friday. Comstock Resources has a one year low of $12.12 and a one year high of $28.10. The stock has a market capitalization of $4.11 billion, a PE ratio of 31.40 and a beta of 0.52. The business's 50 day moving average price is $13.94 and its 200 day moving average price is $14.52. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.48 and a current ratio of 0.48.

Comstock Resources (NYSE:CRK - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The oil and gas producer reported $0.03 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.01. The company had revenue of $353.28 million during the quarter, compared to analyst estimates of $419.22 million. Comstock Resources had a return on equity of 4.12% and a net margin of 23.31%. The firm's revenue for the quarter was down 24.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.13 earnings per share. As a group, equities research analysts expect that Comstock Resources will post 0.26 EPS for the current year.

Hedge Funds Weigh In On Comstock Resources

A number of institutional investors and hedge funds have recently made changes to their positions in CRK. Old West Investment Management LLC purchased a new stake in Comstock Resources during the second quarter worth approximately $4,104,000. BlackRock Inc. purchased a new position in Comstock Resources in the second quarter valued at approximately $176,583,000. Bank of New York Mellon Corp purchased a new position in Comstock Resources in the second quarter valued at approximately $8,311,000. GSA Capital Partners LLP purchased a new position in Comstock Resources in the second quarter valued at approximately $2,028,000. Finally, Liontrust Investment Partners LLP raised its holdings in Comstock Resources by 877.8% during the first quarter. Liontrust Investment Partners LLP now owns 128,938 shares of the oil and gas producer's stock worth $2,718,000 after purchasing an additional 115,752 shares in the last quarter. 36.13% of the stock is owned by institutional investors and hedge funds.

Comstock Resources Company Profile

Comstock Resources, Inc is an independent energy company engaged in the acquisition, development, exploration and production of oil and natural gas properties. The company is primarily focused on natural gas and operates in the United States.

Comstock's operations are concentrated in the Haynesville shale, a major natural gas-producing region in East Texas and northern Louisiana. Its activities include drilling and completing horizontal wells, developing natural gas acreage and producing natural gas and related hydrocarbon products for sale to energy markets.

Headquartered in Frisco, Texas, Comstock has developed its business through organic drilling and strategic acquisitions, including the 2018 acquisition of Covey Park Energy, which expanded its position in the Haynesville basin.

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