Comstock Resources (NYSE:CRK) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Comstock Resources (NYSE:CRK) from “hold” to “strong sell,” adding to a broadly cautious analyst outlook on the stock.
• Other firms have also turned negative: Goldman Sachs cut its price target to $10 and assigned a “sell” rating, while the stock’s overall consensus rating is now Reduce with an average target price of $16.11.
• Comstock recently reported missed earnings, posting $0.15 EPS versus $0.23 expected, even though revenue of $587.35 million beat estimates and rose 14.5% year over year.

Comstock Resources (NYSE:CRK - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Thursday,Zacks.com reports.

Several other research analysts have also commented on the company. Williams Trading set a $16.00 price objective on Comstock Resources in a research report on Thursday, May 14th. Wall Street Zen lowered Comstock Resources from a "sell" rating to a "strong sell" rating in a research note on Saturday, May 9th. Weiss Ratings reiterated a "hold (c)" rating on shares of Comstock Resources in a report on Wednesday, May 20th. The Goldman Sachs Group reduced their price target on Comstock Resources from $13.00 to $10.00 and set a "sell" rating on the stock in a research report on Tuesday, June 30th. Finally, Morgan Stanley set a $16.00 price target on Comstock Resources and gave the stock an "equal weight" rating in a report on Monday, June 29th. Six analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $16.11.

Comstock Resources Stock Up 1.9%

CRK opened at $13.35 on Thursday. Comstock Resources has a 1 year low of $12.44 and a 1 year high of $28.10. The firm has a 50 day moving average price of $13.77 and a 200 day moving average price of $17.98. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.41 and a current ratio of 0.41. The company has a market cap of $3.92 billion, a PE ratio of 6.09 and a beta of 0.10.

Comstock Resources (NYSE:CRK - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The oil and gas producer reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.08). Comstock Resources had a return on equity of 5.54% and a net margin of 27.18%.The business had revenue of $587.35 million for the quarter, compared to analysts' expectations of $554.01 million. During the same quarter in the prior year, the firm earned $0.18 earnings per share. Comstock Resources's quarterly revenue was up 14.5% compared to the same quarter last year. Sell-side analysts expect that Comstock Resources will post 0.51 earnings per share for the current year.

Hedge Funds Weigh In On Comstock Resources

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CRK. Rothschild Investment LLC increased its position in shares of Comstock Resources by 740.4% during the fourth quarter. Rothschild Investment LLC now owns 1,143 shares of the oil and gas producer's stock worth $26,000 after acquiring an additional 1,007 shares during the last quarter. Advisory Services Network LLC purchased a new position in Comstock Resources in the third quarter valued at about $27,000. Whittier Trust Co. of Nevada Inc. purchased a new position in Comstock Resources in the first quarter valued at about $29,000. Kemnay Advisory Services Inc. purchased a new position in Comstock Resources in the fourth quarter valued at about $29,000. Finally, Hantz Financial Services Inc. grew its stake in Comstock Resources by 877.6% during the 4th quarter. Hantz Financial Services Inc. now owns 1,437 shares of the oil and gas producer's stock valued at $33,000 after purchasing an additional 1,290 shares in the last quarter. 36.13% of the stock is owned by hedge funds and other institutional investors.

About Comstock Resources

Comstock Resources, Inc is an independent energy company engaged in the acquisition, exploration, development and production of oil and natural gas properties in the United States. The company focuses on generating long-term value through the efficient development of unconventional resource plays and conventional prospects. Its activities encompass drilling, completion and production operations, as well as the marketing of natural gas, natural gas liquids and crude oil.

Comstock holds a core position in the Haynesville Shale of Northwest Louisiana, one of the most active natural gas plays in North America, and has built a complementary portfolio in the Delaware Basin of West Texas.

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