Continental Resources (CLR) Update - June 10

dan_s · Post by **dan_s** » Mon Jun 10, 2019 9:59 am

GuruFocus.com
June 10, 2019
"CEO & Chairman of Continental Resources Inc (CLR) Harold Hamm bought 38,600 shares of CLR on 06/06/2019 at an average price of $38.76 a share. The total cost of this purchase was $1.5 million."

My valuation of CLR, which I discussed in Saturday's podcast, is $85/share. In the last 3 months, 7 ranked analysts set 12-month price targets for CLR. The average price target among the analysts is $60.43. On June 4th Derrick Whitfield at Stifel Nicolaus rated the stock a BUY with a price target of $71/share.

My valuation assumes that CLR's $1 Billion stock repurchase program will be completed by mid-2020. The drop in outstanding shares will improve EPS and CFPS numbers. CLR is on-track to generate close to $1 Billion in FREE CASH FLOW FROM OPERATIONS this year. IMO it is a STRONG BUY up to First Call's price target.