Comstock Resources Stock Plunges on Jefferies Coverage

Comstock Resources (CRK) stock took a hit yesterday after Jefferies initiated coverage on the company with a Hold rating and a $14 price target. The analyst, John Edelman, cited Comstock's high sensitivity to natural gas prices as well as its heavy debt and costly exploration, which he said could create volatility in the company's stock.

The shares fell 5.2% before recovering some losses, ending the day down 4.8%. Despite this recent drop, investors who bought Comstock Resources' shares five years ago would now be looking at an investment worth $1,272 on a $1,000 initial purchase.

This volatility is not new for Comstock Resources, with its shares experiencing 42 moves greater than 5% over the last year. Edelman noted that this news may be meaningful but won't fundamentally change the market's perception of the business.