Comstock Resources Inc. [NYSE: CRK] loss -2.44% or -0.15 points to close at $6.00 with a heavy trading volume of 6610090 shares. The company report on February 19, 2021 that COMSTOCK RESOURCES, INC. ANNOUNCES PRICING OF $1.0 BILLION OFFERING OF NEW SENIOR NOTES DUE 2029.
Comstock Resources, Inc. (NYSE:CRK) (“Comstock” or the “Company”) announced the pricing of its private placement of new 6.75% senior notes due 2029 in the aggregate principal amount of $1.0 billion, which was increased from the originally proposed $750.0 million offering (the “Notes”). The Notes were sold at par. The offering is expected to close on March 4, 2021, subject to customary closing conditions.
The aggregate net proceeds from the sale of the Notes are expected to be approximately $984.0 million, after deducting the initial purchasers’ discounts and other offering expenses, and the Company intends to use such proceeds, together with, if necessary, borrowings under its bank credit facility or cash on hand, to fund the concurrent tender offers for a portion of the Company’s 7.5% senior notes due 2025 and 9.75% senior notes due 2026 (the “Tender Offers”), including the payment of all premiums, accrued interest, and related fees and expenses incurred in connection therewith, and the excess, if any, for repayment of borrowings under the Company’s bank credit facility.
It opened the trading session at $6.35, the shares rose to $6.55 and dropped to $5.945, the range by which the price of stock traded the whole day. The daily chart for CRK points out that the company has recorded -4.31% loss over the past six months. However, it is still -48.15% lower than its most recent low trading price.
If we look at the average trading volume of 3.09M shares, CRK reached to a volume of 6610090 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Comstock Resources Inc. [CRK]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CRK shares is $7.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CRK stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
BMO Capital Markets have made an estimate for Comstock Resources Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on January 11, 2021. While these analysts kept the previous recommendation, Truist dropped their target price from $8 to $5. The new note on the price target was released on December 15, 2020, representing the official price target for Comstock Resources Inc. stock. On October 19, 2020, analysts increased their price target for CRK shares from 6.50 to 8.
The Average True Range (ATR) for Comstock Resources Inc. is set at 0.35, with the Price to Sales ratio for CRK stock in the period of the last 12 months amounting to 1.49. The Price to Book ratio for the last quarter was 1.02, with the Price to Cash per share for the same quarter was set at 0.13. Price to Free Cash Flow for CRK in the course of the last twelve months was 27.18 with Quick ratio for the last quarter at 0.40.
Trading performance analysis for CRK stock
Comstock Resources Inc. [CRK] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.78. With this latest performance, CRK shares gained by 18.81% in over the last four-week period, additionally sinking by -4.31% over the last 6 months – not to mention a drop of -6.54% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CRK stock in for the last two-week period is set at 67.80, with the RSI for the last a single of trading hit 71.31, and the three-weeks RSI is set at 64.49 for Comstock Resources Inc. [CRK]. The present Moving Average for the last 50 days of trading for this stock 4.86, while it was recorded at 5.64 for the last single week of trading, and 5.16 for the last 200 days.
Comstock Resources Inc. [CRK]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Comstock Resources Inc. [CRK] shares currently have an operating margin of +35.76 and a Gross Margin at +39.57. Comstock Resources Inc.’s Net Margin is presently recorded at +12.56.
Return on Total Capital for CRK is now 9.41, given the latest momentum, and Return on Invested Capital for the company is 3.31. Return on Equity for this stock inclined to 11.27, with Return on Assets sitting at 2.82. When it comes to the capital structure of this company, Comstock Resources Inc. [CRK] has a Total Debt to Total Equity ratio set at 252.25. Additionally, CRK Total Debt to Total Capital is recorded at 71.61, with Total Debt to Total Assets ending up at 61.91. Long-Term Debt to Equity for the company is recorded at 252.07, with the Long-Term Debt to Total Capital now at 71.56.
Reflecting on the efficiency of the workforce at the company, Comstock Resources Inc. [CRK] managed to generate an average of $466,343 per employee. Receivables Turnover for the company is 5.23 with a Total Asset Turnover recorded at a value of 0.22.Comstock Resources Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 0.40.
Comstock Resources Inc. [CRK]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Comstock Resources Inc. posted 0.12/share EPS, while the average EPS was predicted by analysts to be reported at 0.07/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 71.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CRK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Comstock Resources Inc. go to 20.00%.
An analysis of insider ownership at Comstock Resources Inc. [CRK]
There are presently around $289 million, or 24.50% of CRK stock, in the hands of institutional investors. The top three institutional holders of CRK stocks are: DEEP BASIN CAPITAL LP with ownership of 5,640,294, which is approximately 7.565% of the company’s market cap and around 1.20% of the total institutional ownership; ADAGE CAPITAL PARTNERS GP, L.L.C., holding 4,679,573 shares of the stock with an approximate value of $28.08 million in CRK stocks shares; and BANK OF NEW YORK MELLON CORP, currently with $22.03 million in CRK stock with ownership of nearly 83.305% of the company’s market capitalization.
Positions in Comstock Resources Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 70 institutional holders increased their position in Comstock Resources Inc. [NYSE:CRK] by around 15,776,629 shares. Additionally, 60 investors decreased positions by around 20,693,792 shares, while 18 investors held positions by with 11,691,332 shares. The mentioned changes placed institutional holdings at 48,161,753 shares, according to the latest SEC report filing. CRK stock had 25 new institutional investments in for a total of 4,363,729 shares, while 26 institutional investors sold positions of 9,690,508 shares during the same period.