Comstock Resources Inc. (NYSE: CRK) – Suitable For Long Term Buy?

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GLBE Stock

Adage Capital Management LP recently announced the acquisition of new stake in Comstock Resources Inc. (NYSE:CRK). This fresh investment now brings its stake to 1.60% valued currently at $19.83 million. In addition, Stonehill Capital Management LLC raised its holdings by 3.3 million to 3.3 million shares.

With over 1.41 million Comstock Resources Inc. (CRK) shares trading Friday and a closing price of $6.13 on the day, the dollar volume was approximately $8.65 million. The shares have shown a positive weekly performance of 4.97% and its price on 08/28/20 gained nearly 0.66%. Currently, there are 208.90M common shares owned by the public and among those 61.27M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for CRK have a consensus price objective of $8.42. The analysts have set the share’s price value over the next 12 months at a high of $13.00 and a low of $6.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Comstock Resources Inc. stock is 2.10 for the next 12 months. The average price target is 28.64% above its last price level and an upside to the estimated low will see the stock lose -2.17% over that period. But an upside of 52.85% will see the stock hit the forecast high price target while mean target price for the stock is $8.00.

Insiders at the company have transacted a total of 40 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 16 of these insider trades were purchases, accounting for 511,492 shares. Insider sales of the common stock occurred on 24 occasions, with total insider shares sold totaling 19,921,209 shares.

The top 3 mutual fund holders in Comstock Resources Inc. are Putnam Multi Cap Core Fund, Bridgeway Omni Small Cap Value Fu, and Vanguard Extended Market Index Fu. Putnam Multi Cap Core Fund owns 2.75 million shares of the company’s stock, all valued at over $14.74 million. The company bought an additional 2.75 million shares recently to bring their total holdings to about 1.19% of the shares outstanding. Bridgeway Omni Small Cap Value Fu bought 0.21 million shares to see its total holdings expand to 0.86 million shares valued at over $4.6 million and representing 0.37% of the shares outstanding. Vanguard Extended Market Index Fu sold 22141.0 shares to bring its total holdings to over 0.79 million shares at a value of $4.26 million. Vanguard Extended Market Index Fu now owns shares totaling to 0.34% of the shares outstanding.

Shares of Comstock Resources Inc. (NYSE: CRK) opened at $6.11, up $0.02 from a prior closing price of $6.09. However, the script later closed the day at $6.13, up 0.66%. The company’s stock has a 5-day price change of 4.97% and 15.44% over the past three months. CRK shares are trading -25.52% year to date (YTD), with the 12-month market performance up to 6.98% higher. It has a 12-month low price of $4.05 and touched a high of $10.70 over the same period. Currently, 1.41 million shares have been traded, compared to an average intraday trading volume of 1.90 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.39%, 16.03%, and 1.89% respectively.

Institutional ownership of Comstock Resources Inc. (NYSE: CRK) shares accounts for 17.40% of the company’s 208.90M shares outstanding. Mutual fund holders own 3.73%, while other institutional holders and individual stakeholders account for 48.04% and 13.69% respectively.

It has a market capitalization of $1.42B and a beta (3y monthly) value of 2.16. The earnings-per-share (ttm) stands at -$0.04. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.34% over the week and 6.98% over the month.

Analysts forecast that Comstock Resources Inc. (CRK) will achieve an EPS of $0 for the current quarter, $0.11 for the next quarter and $0.71 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.09 while analysts give the company a high EPS estimate of $0.08. Comparatively, EPS for the current quarter was $0.17 a year ago. Earnings per share for the fiscal year are expected to increase by 239.10%, and 270.16% over the next financial year. EPS should grow at an annualized rate of 20.00% over the next five years, compared to 15.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate Comstock Resources Inc. (CRK) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 2 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the CRK, a number of firms have released research notes about the stock. Goldman stated their Neutral rating for the stock in a research note on August 13, 2020, with the firm’s price target at $6. Citigroup coverage for the Comstock Resources Inc. (CRK) stock in a research note released on July 21, 2020 offered a Buy rating with a price target of $8. Piper Sandler was of a view on July 09, 2020 that the stock is Neutral, while BMO Capital Markets gave the stock Outperform rating on June 17, 2020, issuing a price target of $8. CapitalOne on their part issued Overweight rating on May 18, 2020.


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