Comstock Resources (NYSE:CRK) Stock Price Down 9.4% Following Weak Earnings

Key Points

• Shares of Comstock Resources fell 9.4% to about $15.70 after the company reported quarterly EPS of $0.15 versus the consensus $0.23, even though revenue of $587.35 million slightly beat estimates.
• Analyst sentiment has soured, with Bank of America downgrading to "neutral" (price target cut to $24) and Wall Street Zen to "sell"; MarketBeat shows a consensus rating of "Reduce" and a $20.88 consensus price target.
• Insider and institutional moves include VP Patrick McGough selling 48,915 shares at $21.20 while Goldman Sachs boosted its stake by 67% to about 1.09M shares; the company has a market cap of $4.6B, a P/E of 11.18 and a debt/equity ratio of 0.95 with a low current ratio of 0.49.

Comstock Resources, Inc. (NYSE:CRK - Get Free Report)'s stock price was down 9.4% on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $15.72 and last traded at $15.7030. Approximately 1,191,122 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 2,336,361 shares. The stock had previously closed at $17.33.

The oil and gas producer reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.08). The business had revenue of $587.35 million for the quarter, compared to analysts' expectations of $554.02 million. Comstock Resources had a net margin of 17.80% and a return on equity of 6.30%. The company's revenue for the quarter was up 14.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.18 earnings per share.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Bank of America downgraded Comstock Resources from a "buy" rating to a "neutral" rating and cut their price target for the stock from $27.00 to $24.00 in a research note on Friday, January 16th. UBS Group set a $17.00 price target on Comstock Resources in a research note on Friday, February 13th. Morgan Stanley set a $19.00 price target on Comstock Resources in a research note on Friday, February 13th. Wall Street Zen downgraded Comstock Resources from a "hold" rating to a "sell" rating in a research note on Saturday, April 25th. Finally, Citigroup reiterated a "neutral" rating on shares of Comstock Resources in a research note on Wednesday, April 15th. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $20.88.

Insider Buying and Selling

In other Comstock Resources news, VP Patrick Mcgough sold 48,915 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $21.20, for a total value of $1,036,998.00. Following the completion of the transaction, the vice president owned 187,516 shares in the company, valued at $3,975,339.20. This trade represents a 20.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 2.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CRK. AQR Capital Management LLC bought a new position in Comstock Resources in the 1st quarter worth about $627,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Comstock Resources by 5.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 55,236 shares of the oil and gas producer's stock worth $1,124,000 after purchasing an additional 2,697 shares during the period. Goldman Sachs Group Inc. boosted its stake in Comstock Resources by 67.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,086,868 shares of the oil and gas producer's stock worth $22,107,000 after purchasing an additional 437,476 shares during the period. Intech Investment Management LLC boosted its stake in Comstock Resources by 26.0% in the 1st quarter. Intech Investment Management LLC now owns 65,289 shares of the oil and gas producer's stock worth $1,328,000 after purchasing an additional 13,485 shares during the period. Finally, Northwestern Mutual Wealth Management Co. bought a new position in Comstock Resources in the 2nd quarter worth about $93,000. Institutional investors own 36.13% of the company's stock.

Comstock Resources Trading Down 9.5%

The firm has a 50 day simple moving average of $19.28 and a 200 day simple moving average of $21.15. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.49 and a current ratio of 0.49. The firm has a market cap of $4.60 billion, a P/E ratio of 11.18 and a beta of 0.22.

Comstock Resources Company Profile

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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