Comstock Resources (NYSE:CRK) Shares Down 8.9% on Analyst Downgrade

Key Points

• Shares of Comstock Resources fell by 8.9% following a downgrade by UBS Group, which lowered its price target from $20.00 to $18.00 and currently rates the stock as a sell.
• Despite the downgrade, other firms like Wolfe Research and Mizuho have issued positive ratings on the stock, with price targets ranging significantly, indicating mixed sentiment among analysts.
• Comstock posted a 90.5% year-over-year revenue increase in its latest earnings report, with earnings per share exceeding analyst expectations, although it still faced negative returns on equity.

Comstock Resources, Inc. (NYSE:CRK - Get Free Report)'s stock price traded down 8.9% during trading on Thursday after UBS Group lowered their price target on the stock from $20.00 to $18.00. UBS Group currently has a sell rating on the stock. Comstock Resources traded as low as $18.88 and last traded at $18.95. 1,171,388 shares traded hands during trading, a decline of 51% from the average session volume of 2,379,583 shares. The stock had previously closed at $20.79.

A number of other research analysts have also recently commented on the company. Wolfe Research upgraded Comstock Resources from a "peer perform" rating to an "outperform" rating and set a $34.00 price objective on the stock in a report on Tuesday, June 17th. Citigroup reiterated a "neutral" rating and issued a $27.00 price objective (up from $22.00) on shares of Comstock Resources in a research note on Friday, June 13th. Wall Street Zen upgraded Comstock Resources to a "sell" rating in a research note on Thursday, May 8th. Piper Sandler reiterated an "underweight" rating and issued a $12.00 price objective (up from $6.00) on shares of Comstock Resources in a research note on Tuesday, May 13th. Finally, Mizuho increased their target price on Comstock Resources from $22.00 to $24.00 and gave the company a "neutral" rating in a report on Tuesday, May 13th. Five research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, Comstock Resources currently has a consensus rating of "Hold" and a consensus price target of $19.64.

Institutional Investors Weigh In On Comstock Resources

Several hedge funds have recently made changes to their positions in the business. Delta Investment Management LLC acquired a new stake in Comstock Resources in the second quarter valued at about $2,215,000. Envestnet Asset Management Inc. lifted its position in shares of Comstock Resources by 14.6% during the 2nd quarter. Envestnet Asset Management Inc. now owns 21,525 shares of the oil and gas producer's stock valued at $596,000 after acquiring an additional 2,738 shares during the period. Carrera Capital Advisors lifted its position in shares of Comstock Resources by 5.9% during the 2nd quarter. Carrera Capital Advisors now owns 76,946 shares of the oil and gas producer's stock valued at $2,129,000 after acquiring an additional 4,308 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Comstock Resources during the 2nd quarter valued at approximately $69,000. Finally, Bleakley Financial Group LLC lifted its position in shares of Comstock Resources by 17.3% during the 2nd quarter. Bleakley Financial Group LLC now owns 39,741 shares of the oil and gas producer's stock valued at $1,100,000 after acquiring an additional 5,848 shares during the period. Institutional investors and hedge funds own 36.13% of the company's stock.

Comstock Resources Stock Performance

The company has a current ratio of 0.36, a quick ratio of 0.36 and a debt-to-equity ratio of 1.24. The stock's 50 day moving average price is $24.24 and its two-hundred day moving average price is $21.29. The firm has a market capitalization of $4.81 billion, a PE ratio of -68.13 and a beta of 0.28.

Comstock Resources (NYSE:CRK - Get Free Report) last released its earnings results on Wednesday, July 30th. The oil and gas producer reported $0.13 EPS for the quarter, topping the consensus estimate of $0.09 by $0.04. The firm had revenue of $470.26 million during the quarter, compared to analysts' expectations of $431.82 million. Comstock Resources had a negative net margin of 5.05% and a positive return on equity of 3.65%. Comstock Resources's revenue for the quarter was up 90.5% on a year-over-year basis. During the same period in the previous year, the company earned ($0.20) EPS. On average, equities analysts expect that Comstock Resources, Inc. will post 0.54 earnings per share for the current year.

Comstock Resources Company Profile

Comstock Resources, Inc, an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. Its assets are located in the Haynesville and Bossier shales located in North Louisiana and East Texas. The company was incorporated in 1919 and is headquartered in Frisco, Texas.