For Comstock Resources Inc. [CRK], Analyst sees a drop to $6. What next?

Comstock Resources Inc. [NYSE: CRK] closed the trading session at $9.71 on 10/12/21. The day’s price range saw the stock hit a low of $9.6101, while the highest price level was $10.40. The company report on October 7, 2021 that COMSTOCK RESOURCES, INC. ANNOUNCES THE DIVESTITURE OF BAKKEN SHALE ASSETS.

Comstock Resources, Inc. (“Comstock” or the “Company”) (NYSE: CRK) announced that it has entered into an asset purchase agreement with Northern Oil & Gas, Inc. (“NOG”) to sell its assets in the Bakken shale for $154 million in cash, subject to adjustment and customary closing conditions. The properties being sold include non-operated interests in over 400 producing wells (65.9 net) with recent production of greater than 4,500 net barrels of oil equivalent per day (approximately 65% oil). The sale is expected to close in the fourth quarter and will have an effective date of October 1, 2021. Comstock expects to recognize a pre-tax loss of $130-$140 million on the divestiture. EnergyNet is acting as exclusive advisor to Comstock on the sale.

Comstock plans to re-invest the proceeds from the property sale into its Haynesville shale development program, including the acceleration of completing 13 (9.4 net) drilled and uncompleted wells which were originally budgeted to be completed in 2022. Comstock may also use a portion of the proceeds to acquire additional leasehold and to fund additional drilling activity in 2022.

The stocks have a year to date performance of 122.20 percent and weekly performance of -10.92 percent. The stock has been moved at 90.39 percent over the last six months. The stock has performed 10.34 percent around the most recent 30 days and changed 59.44 percent over the most recent 3-months.

If compared to the average trading volume of 3.17M shares, CRK reached to a volume of 7076293 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $8.76 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 2.30. 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.

Piper Sandler have made an estimate for Comstock Resources Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 15, 2021. The new note on the price target was released on January 11, 2021, representing the official price target for Comstock Resources Inc. stock. Previously, the target price had yet another drop from $8 to $5, while Truist kept a Hold rating on CRK stock.

The Average True Range (ATR) for Comstock Resources Inc. is set at 0.57, with the Price to Sales ratio for CRK stock in the period of the last 12 months amounting to 1.94. The Price to Book ratio for the last quarter was 2.00, with the Price to Cash per share for the same quarter was set at 0.09. Price to Free Cash Flow for CRK in the course of the last twelve months was 27.33 with Quick ratio for the last quarter at 0.30.

CRK stock trade performance evaluation

Comstock Resources Inc. [CRK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -10.92. With this latest performance, CRK shares gained by 10.34% in over the last four-week period, additionally plugging by 90.39% over the last 6 months – not to mention a rise of 70.35% 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 56.45, with the RSI for the last a single of trading hit 48.23, and the three-weeks RSI is set at 60.20 for Comstock Resources Inc. [CRK]. The present Moving Average for the last 50 days of trading for this stock 7.64, while it was recorded at 10.26 for the last single week of trading, and 6.12 for the last 200 days.

Comstock Resources Inc. [CRK]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Comstock Resources Inc. [CRK] shares currently have an operating margin of +19.00 and a Gross Margin at +22.73. Comstock Resources Inc.’s Net Margin is presently recorded at -6.11.

Return on Total Capital for CRK is now 4.08, given the latest momentum, and Return on Invested Capital for the company is -1.31. Return on Equity for this stock declined to -4.06, with Return on Assets sitting at -1.12. When it comes to the capital structure of this company, Comstock Resources Inc. [CRK] has a Total Debt to Total Equity ratio set at 174.80. Additionally, CRK Total Debt to Total Capital is recorded at 63.61, with Total Debt to Total Assets ending up at 53.14. Long-Term Debt to Equity for the company is recorded at 198.76, with the Long-Term Debt to Total Capital now at 63.55.

Reflecting on the efficiency of the workforce at the company, Comstock Resources Inc. [CRK] managed to generate an average of -$256,946 per employee. Receivables Turnover for the company is 5.18 with a Total Asset Turnover recorded at a value of 0.18.Comstock Resources Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.30 and a Current Ratio set at 0.30.

Earnings per share (EPS) analysis for Comstock Resources Inc. [CRK] stock

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%.

Comstock Resources Inc. [CRK]: Insider Ownership positions

There are presently around $708 million, or 29.60% 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 1.50% of the total institutional ownership; BANK OF NEW YORK MELLON CORP, holding 5,585,774 shares of the stock with an approximate value of $54.24 million in CRK stocks shares; and BLACKROCK INC., currently with $54.23 million in CRK stock with ownership of nearly 139.498% of the company’s market capitalization.

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Positions in Comstock Resources Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 105 institutional holders increased their position in Comstock Resources Inc. [NYSE:CRK] by around 31,116,582 shares. Additionally, 37 investors decreased positions by around 9,015,286 shares, while 16 investors held positions by with 32,735,112 shares. The mentioned changes placed institutional holdings at 72,866,980 shares, according to the latest SEC report filing. CRK stock had 38 new institutional investments in for a total of 10,366,221 shares, while 15 institutional investors sold positions of 1,781,779 shares during the same period.

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