Comstock Resources (NYSE:CRK) Shares Down 8.9% After 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 was down 8.9% during mid-day 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. Approximately 1,171,388 shares were traded during trading, a decline of 51% from the average daily volume of 2,379,583 shares. The stock had previously closed at $20.79.

Several other research firms have also recently weighed in on CRK. Wolfe Research raised Comstock Resources from a "peer perform" rating to an "outperform" rating and set a $34.00 price objective on the stock in a research report on Tuesday, June 17th. Mizuho lifted their price objective on Comstock Resources from $22.00 to $24.00 and gave the company a "neutral" rating in a research report on Tuesday, May 13th. Bank of America lifted their price objective on Comstock Resources from $25.00 to $27.00 and gave the company a "buy" rating in a research report on Friday, May 23rd. Piper Sandler reaffirmed an "underweight" rating and set a $12.00 price objective (up from $6.00) on shares of Comstock Resources in a research report on Tuesday, May 13th. Finally, Citigroup reaffirmed a "neutral" rating and set a $27.00 price objective (up from $22.00) on shares of Comstock Resources in a research report on Friday, June 13th. Five analysts have rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $19.64.

Hedge Funds Weigh In On Comstock Resources

Hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its stake in Comstock Resources by 1.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 13,297,863 shares of the oil and gas producer's stock valued at $242,301,000 after buying an additional 227,638 shares during the last quarter. Vanguard Group Inc. raised its stake in Comstock Resources by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 9,222,982 shares of the oil and gas producer's stock valued at $168,043,000 after buying an additional 126,380 shares during the last quarter. Invesco Ltd. raised its stake in Comstock Resources by 79.9% during the 1st quarter. Invesco Ltd. now owns 1,155,680 shares of the oil and gas producer's stock valued at $23,507,000 after buying an additional 513,190 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in Comstock Resources by 67.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,086,868 shares of the oil and gas producer's stock valued at $22,107,000 after buying an additional 437,476 shares during the last quarter. Finally, Corigliano Investment Advisers LLC purchased a new stake in Comstock Resources during the 4th quarter valued at $11,450,000. 36.13% of the stock is currently owned by hedge funds and other institutional investors.

Comstock Resources Stock Performance

The firm has a market capitalization of $5.22 billion, a PE ratio of -16.13 and a beta of 0.37. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 1.34. The business's 50 day simple moving average is $24.55 and its two-hundred day simple moving average is $21.34.

Comstock Resources (NYSE:CRK - Get Free Report) last posted its quarterly earnings data 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 analyst estimates of $431.82 million. Comstock Resources had a negative return on equity of 0.67% and a negative net margin of 23.39%. Comstock Resources's revenue was up 90.5% on a year-over-year basis. During the same period in the prior year, the business posted ($0.20) EPS. Research analysts expect that Comstock Resources, Inc. will post 0.54 earnings per share for the current fiscal 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.

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