Comstock Resources (NYSE:CRK) Shares Gap Down - Here's What Happened

Key Points

• Comstock Resources' stock gapped down from a closing price of $19.22 to $18.52 prior to trading, with a volume of 524,856 shares traded.
• Several analysts have dropped target prices on Comstock Resources, with Roth Capital lowering its price objective from $18.00 to $12.00 and UBS Group from $18.00 to $14.00, indicating a generally pessimistic outlook.
• The company reported a 90.5% increase in revenue year-over-year, with earnings per share of $0.13, surpassing the consensus estimate of $0.09.

Comstock Resources, Inc. (NYSE:CRK - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $19.22, but opened at $18.52. Comstock Resources shares last traded at $18.52, with a volume of 524,856 shares traded.

Wall Street Analyst Weigh In

CRK has been the subject of several recent analyst reports. Roth Capital downgraded shares of Comstock Resources from a "neutral" rating to a "sell" rating and decreased their price objective for the stock from $18.00 to $12.00 in a report on Monday, August 18th. Morgan Stanley reduced their price objective on shares of Comstock Resources from $21.00 to $19.00 and set an "equal weight" rating on the stock in a research note on Monday, August 4th. UBS Group dropped their target price on shares of Comstock Resources from $18.00 to $14.00 and set a "sell" rating on the stock in a report on Wednesday, August 20th. Piper Sandler lowered their target price on shares of Comstock Resources from $12.00 to $10.00 and set an "underweight" rating on the stock in a report on Monday, August 4th. Finally, Zacks Research cut shares of Comstock Resources from a "hold" rating to a "strong sell" rating in a research report on Tuesday. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $19.60.

Comstock Resources Trading Down 5.5%

The stock has a 50-day moving average price of $17.38 and a 200-day moving average price of $20.62. The stock has a market cap of $5.32 billion, a P/E ratio of -75.88 and a beta of 0.19. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.36 and a current ratio of 0.36.

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

Institutional Investors Weigh In On Comstock Resources

A number of institutional investors and hedge funds have recently modified their holdings of the business. Legacy Investment Solutions LLC purchased a new stake in Comstock Resources during the 2nd quarter valued at about $29,000. Atlantic Union Bankshares Corp purchased a new position in Comstock Resources in the second quarter worth approximately $34,000. Nisa Investment Advisors LLC lifted its stake in Comstock Resources by 129.3% during the first quarter. Nisa Investment Advisors LLC now owns 2,075 shares of the oil and gas producer's stock worth $42,000 after purchasing an additional 1,170 shares in the last quarter. Emerald Mutual Fund Advisers Trust acquired a new stake in shares of Comstock Resources in the first quarter valued at $52,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in Comstock Resources in the second quarter valued at $69,000. 36.13% of the stock is owned by institutional investors.

About Comstock Resources

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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