Comstock Resources (NYSE:CRK) Shares Down 3.7% - Time to Sell?

Key Points

• Comstock shares fell about 3.7% to $16.69 intraday on Tuesday with volume of ~278,739 shares (down ~88% versus average), and the stock is trading below its 50‑day ($20.17) and 200‑day ($21.48) moving averages.
• Analysts hold a consensus rating of Reduce with a consensus price target of $20.88 after recent downgrades and mixed coverage (one Buy, six Hold, three Sell).
• The latest quarter posted a revenue beat — $787.3M versus $504.7M estimated, up 115.5% year‑over‑year — but EPS was flat at $0.16; the stock trades at a P/E of ~11.6 and the company has a debt‑to‑equity ratio of 0.95.

Comstock Resources, Inc. (NYSE:CRK - Get Free Report) dropped 3.7% during mid-day trading on Tuesday . The stock traded as low as $16.69 and last traded at $16.6920. Approximately 278,739 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 2,382,129 shares. The stock had previously closed at $17.33.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on CRK shares. Bank of America lowered shares of 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. Wall Street Zen raised Comstock Resources from a "sell" rating to a "hold" rating in a research note on Saturday. Morgan Stanley set a $19.00 target price on Comstock Resources in a research note on Friday, February 13th. Citigroup raised their price target on Comstock Resources from $23.00 to $24.00 and gave the company a "neutral" rating in a report on Tuesday, March 31st. Finally, UBS Group set a $17.00 price target on Comstock Resources in a research report on Friday, February 13th. One research analyst has rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $20.88.

Comstock Resources Trading Down 6.1%

The stock has a 50 day moving average of $20.17 and a 200 day moving average of $21.48. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.49 and a quick ratio of 0.49. The firm has a market cap of $4.79 billion, a P/E ratio of 11.57 and a beta of 0.39.

Comstock Resources (NYSE:CRK - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The oil and gas producer reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.05. The firm had revenue of $787.32 million during the quarter, compared to analyst estimates of $504.66 million. Comstock Resources had a return on equity of 6.30% and a net margin of 17.80%.The company's revenue was up 115.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.16 earnings per share. As a group, equities research analysts predict that Comstock Resources, Inc. will post 0.54 EPS for the current year.

Insider Buying and Selling

In other Comstock Resources news, VP Patrick Mcgough sold 48,915 shares of Comstock Resources 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 transaction, the vice president directly owned 187,516 shares of the company's stock, valued at approximately $3,975,339.20. This trade represents a 20.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 2.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Comstock Resources

Several institutional investors and hedge funds have recently made changes to their positions in the business. Redwood Family Wealth LLC bought a new stake in Comstock Resources in the fourth quarter worth $232,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Comstock Resources in the fourth quarter worth about $36,000. Invesco Ltd. lifted its stake in shares of Comstock Resources by 4.2% in the 4th quarter. Invesco Ltd. now owns 969,961 shares of the oil and gas producer's stock valued at $22,484,000 after acquiring an additional 39,409 shares during the last quarter. Empowered Funds LLC boosted its holdings in Comstock Resources by 17.2% during the 4th quarter. Empowered Funds LLC now owns 108,103 shares of the oil and gas producer's stock valued at $2,506,000 after acquiring an additional 15,852 shares during the period. Finally, XTX Topco Ltd bought a new position in Comstock Resources during the 4th quarter worth approximately $870,000. Institutional investors 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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