Comstock Resources (NYSE:CRK) Stock Rating Raised to "Strong Sell" at Scotiabank

Key Points

• Scotiabank downgraded Comstock Resources to “strong sell,” joining Zacks Research and contributing to a consensus “Reduce” rating. Analysts’ average price target is $15.00.
• Comstock shares traded around $13.98, near their 50-day moving average and well below the 52-week high of $28.10. The stock has a $4.11 billion market capitalization and a price-to-earnings ratio of 7.85.
• The company beat quarterly EPS estimates, reporting $0.03 versus $0.02 expected, but revenue fell 24.9% year over year to $353.28 million, below the $419.22 million consensus estimate.

Comstock Resources (NYSE:CRK - Get Free Report) was upgraded by equities researchers at Scotiabank to a "strong sell" rating in a research note issued on Wednesday, Zacks reports.

Other equities analysts have also issued reports about the stock. Zacks Research lowered shares of Comstock Resources from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 16th. BMO Capital Markets reaffirmed a "market perform" rating and set a $17.00 target price (up from $13.00) on shares of Comstock Resources in a report on Wednesday, September 2nd. Cantor Fitzgerald reaffirmed a "neutral" rating on shares of Comstock Resources in a research note on Wednesday, September 2nd. Mizuho cut their target price on shares of Comstock Resources from $20.00 to $17.00 and set a "neutral" rating for the company in a report on Friday. Finally, Jefferies Financial Group initiated coverage on shares of Comstock Resources in a report on Friday, September 25th. They set a "hold" rating and a $14.00 target price for the company. Ten equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $15.00.

Comstock Resources Stock Performance

CRK traded up $0.48 on Wednesday, reaching $13.98. 2,969,899 shares of the stock were exchanged, compared to its average volume of 2,533,994. The company's 50-day moving average price is $13.94 and its 200 day moving average price is $14.52. Comstock Resources has a fifty-two week low of $12.12 and a fifty-two week high of $28.10. The company has a debt-to-equity ratio of 0.98, a current ratio of 0.48 and a quick ratio of 0.48. The firm has a market capitalization of $4.11 billion, a PE ratio of 7.85 and a beta of 0.52.

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Comstock Resources during the second quarter worth $176,583,000. State Street Corp lifted its stake in shares of Comstock Resources by 2.7% in the second quarter. State Street Corp now owns 5,336,565 shares of the oil and gas producer's stock worth $79,622,000 after buying an additional 141,295 shares in the last quarter. First Trust Advisors LP lifted its stake in shares of Comstock Resources by 143.2% in the first quarter. First Trust Advisors LP now owns 1,079,633 shares of the oil and gas producer's stock worth $22,759,000 after buying an additional 635,781 shares in the last quarter. Goehring & Rozencwajg Associates LLC boosted its position in Comstock Resources by 34.8% during the first quarter. Goehring & Rozencwajg Associates LLC now owns 861,858 shares of the oil and gas producer's stock worth $18,168,000 after acquiring an additional 222,569 shares during the last quarter. Finally, Bank of America Corp DE boosted its position in Comstock Resources by 5.5% during the first quarter. Bank of America Corp DE now owns 726,140 shares of the oil and gas producer's stock worth $15,307,000 after acquiring an additional 38,060 shares during 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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