Comstock Resources (NYSE:CRK) Hits New 52-Week Low - Here's Why

Key Points

• Comstock Resources shares hit a new 52-week low, falling 5.2% to an intraday low of $12.40 and last trading at $12.49.
• Analyst sentiment has weakened, with six firms rating the stock Hold and four rating it Sell; the consensus rating is “Reduce” with an average price target of $15.22.
• The company’s latest quarterly earnings missed expectations, reporting $0.15 in EPS versus the $0.23 consensus estimate, although revenue rose 14.5% year over year to $587.35 million.

Comstock Resources, Inc. (NYSE:CRK - Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $12.40 and last traded at $12.49, with a volume of 1508694 shares changing hands. The stock had previously closed at $13.00.

Analysts Set New Price Targets

Several research analysts have commented on CRK shares. Morgan Stanley set a $16.00 price target on Comstock Resources and gave the stock an "equal weight" rating in a research report on Monday, June 29th. The Goldman Sachs Group reduced their price objective on Comstock Resources from $13.00 to $10.00 and set a "sell" rating for the company in a research report on Tuesday, June 30th. Citigroup lowered their price objective on shares of Comstock Resources from $19.00 to $16.00 and set a "neutral" rating on the stock in a research note on Monday, July 20th. Zacks Research lowered shares of Comstock Resources from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 16th. Finally, Mizuho cut their target price on shares of Comstock Resources from $25.00 to $21.00 and set a "neutral" rating for the company in a research note on Wednesday, May 27th. Six research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $15.22.

Comstock Resources Trading Down 5.2%

The company has a quick ratio of 0.41, a current ratio of 0.41 and a debt-to-equity ratio of 0.96. The firm has a market capitalization of $3.62 billion, a price-to-earnings ratio of 5.63 and a beta of 0.10. The business has a 50-day moving average of $13.60 and a two-hundred day moving average of $17.52.

Comstock Resources (NYSE:CRK - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The oil and gas producer reported $0.15 EPS for the quarter, missing the consensus estimate 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 analyst estimates of $554.01 million. During the same period last year, the company earned $0.18 EPS. The company's revenue was up 14.5% on a year-over-year basis. Research analysts predict that Comstock Resources, Inc. will post 0.5 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CRK. SG Americas Securities LLC lifted its holdings in shares of Comstock Resources by 1,200.3% during the 4th quarter. SG Americas Securities LLC now owns 331,937 shares of the oil and gas producer's stock worth $7,694,000 after acquiring an additional 306,410 shares during the period. Goehring & Rozencwajg Associates LLC raised its position in Comstock Resources by 34.8% in 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 purchasing an additional 222,569 shares in the last quarter. BW Gestao de Investimentos Ltda. raised its position in Comstock Resources by 163.7% in the fourth quarter. BW Gestao de Investimentos Ltda. now owns 152,100 shares of the oil and gas producer's stock worth $3,526,000 after purchasing an additional 94,418 shares in the last quarter. Gemsstock Ltd. bought a new position in Comstock Resources during the fourth quarter worth about $19,186,000. Finally, Rahlfs Capital LLC bought a new position in Comstock Resources during the fourth quarter worth about $1,144,000. 36.13% of the stock is currently owned by institutional investors and hedge funds.

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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