Comstock Resources (NYSE:CRK) Downgraded to Strong Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Comstock Resources from “sell” to “strong sell”, adding to a cautious analyst backdrop. Overall, the stock now carries a consensus rating of “Reduce” with a target price of $20.88.
• Comstock shares were down 4.5% and recently traded near $14.13, close to their 52-week low of $14.10. The stock is well below its 50-day and 200-day moving averages, signaling weak momentum.
• The company missed earnings expectations in its latest quarter, posting $0.15 EPS versus the expected $0.23, even as revenue rose 14.5% year over year to $587.35 million. Insiders also sold shares, including VP Patrick Mcgough, while institutional investors remain significant holders.

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

A number of other research analysts have also recently commented on the company. Citigroup reiterated a "neutral" rating on shares of Comstock Resources in a research note on Wednesday, April 15th. UBS Group set a $17.00 price target on Comstock Resources in a research note on Friday, February 13th. Morgan Stanley set a $19.00 price target on Comstock Resources in a research note on Friday, February 13th. Finally, Bank of America lowered Comstock Resources from a "buy" rating to a "neutral" rating and reduced their price target for the company from $27.00 to $24.00 in a research report on Friday, January 16th. One research analyst has rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $20.88.

Comstock Resources Stock Down 4.5%

NYSE CRK opened at $14.13 on Friday. The business has a fifty day moving average price of $19.13 and a two-hundred day moving average price of $21.12. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.41 and a quick ratio of 0.49. Comstock Resources has a fifty-two week low of $14.10 and a fifty-two week high of $31.17. The stock has a market capitalization of $4.15 billion, a PE ratio of 6.45 and a beta of 0.22.

Comstock Resources (NYSE:CRK - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The oil and gas producer reported $0.15 EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.08). Comstock Resources had a net margin of 27.18% and a return on equity of 5.54%. The firm had revenue of $587.35 million during the quarter, compared to the consensus estimate of $554.02 million. During the same quarter in the previous year, the company posted $0.18 earnings per share. The firm's revenue was up 14.5% on a year-over-year basis. Equities analysts expect that Comstock Resources will post 0.66 earnings per share for the current fiscal year.

Insider Activity at Comstock Resources

In other news, VP Patrick Mcgough sold 48,915 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $21.20, for a total transaction of $1,036,998.00. Following the completion of the sale, the vice president owned 187,516 shares of the company's stock, valued at $3,975,339.20. This trade represents a 20.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 2.20% of the stock is currently owned by company insiders.

Institutional Trading of Comstock Resources

Several large investors have recently modified their holdings of the stock. Great Hill Capital LLC acquired a new stake in shares of Comstock Resources in the 3rd quarter valued at about $4,075,000. Federated Hermes Inc. boosted its stake in Comstock Resources by 10,032.7% during the 3rd quarter. Federated Hermes Inc. now owns 359,307 shares of the oil and gas producer's stock valued at $7,125,000 after purchasing an additional 355,761 shares during the last quarter. GSA Capital Partners LLP acquired a new position in Comstock Resources during the 3rd quarter valued at about $2,395,000. LSP Investment Advisors LLC boosted its stake in Comstock Resources by 33.9% during the 3rd quarter. LSP Investment Advisors LLC now owns 378,900 shares of the oil and gas producer's stock valued at $7,514,000 after purchasing an additional 95,900 shares during the last quarter. Finally, Aventail Capital Group LP boosted its stake in Comstock Resources by 149.9% during the 3rd quarter. Aventail Capital Group LP now owns 1,143,721 shares of the oil and gas producer's stock valued at $22,680,000 after purchasing an additional 686,002 shares during the last quarter. Institutional investors and hedge funds own 36.13% of the company's stock.

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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