Comstock Resources (NYSE:CRK) Shares Gap Up - Time to Buy?

Key Points

• Comstock Resources shares jumped at the open, rising from a previous close of $14.43 to $15.82 before trading near $15.37.
• Analyst sentiment remains cautious: six analysts rate the stock Hold and four rate it Sell, resulting in a consensus “Reduce” rating and a $14.89 target price.
• The latest quarter showed mixed results: EPS of $0.03 beat estimates, but revenue fell 24.9% year over year to $353.28 million, below the $419.22 million consensus.

Comstock Resources, Inc. (NYSE:CRK - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $14.43, but opened at $15.82. Comstock Resources shares last traded at $15.3650, with a volume of 3,546,427 shares.

Analyst Ratings Changes

A number of brokerages recently issued reports on CRK. Citigroup reduced their target price on Comstock Resources from $19.00 to $16.00 and set a "neutral" rating for the company in a research note on Monday, July 20th. Zacks Research lowered Comstock Resources from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 16th. The Goldman Sachs Group lowered their price objective on Comstock Resources from $13.00 to $10.00 and set a "sell" rating on the stock in a research note on Tuesday, June 30th. Roth Capital reaffirmed a "neutral" rating on shares of Comstock Resources in a research note on Thursday, July 30th. Finally, Williams Trading set a $16.00 target price on shares of Comstock Resources in a report on Thursday, May 14th. Six equities research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $14.89.

Comstock Resources Price Performance

The stock has a market capitalization of $4.63 billion, a PE ratio of 8.85 and a beta of 0.13. The stock's 50 day moving average is $13.72 and its two-hundred day moving average is $16.01. The company has a debt-to-equity ratio of 0.98, a current ratio of 0.48 and a quick ratio of 0.48.

Comstock Resources (NYSE:CRK - Get Free Report) last issued its earnings results on Wednesday, July 29th. The oil and gas producer reported $0.03 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.01. Comstock Resources had a net margin of 23.31% and a return on equity of 4.12%. The firm had revenue of $353.28 million during the quarter, compared to the consensus estimate of $419.22 million. During the same quarter in the previous year, the firm posted $0.13 earnings per share. The company's revenue was down 24.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Comstock Resources, Inc. will post 0.4 earnings per share for the current fiscal year.

Institutional Trading of Comstock Resources

A number of large investors have recently made changes to their positions in the company. Old West Investment Management LLC purchased a new stake in shares of Comstock Resources in the second quarter valued at about $4,104,000. BlackRock Inc. acquired a new stake in shares of Comstock Resources in the 2nd quarter valued at approximately $176,583,000. Liontrust Investment Partners LLP grew its holdings in Comstock Resources by 877.8% during the first quarter. Liontrust Investment Partners LLP now owns 128,938 shares of the oil and gas producer's stock worth $2,718,000 after acquiring an additional 115,752 shares during the period. GSA Capital Partners LLP purchased a new position in Comstock Resources in the second quarter worth $2,028,000. Finally, Renaissance Technologies LLC acquired a new stake in Comstock Resources in the first quarter valued at $2,780,000. 36.13% of the stock is owned by institutional investors and hedge funds.

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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