Chesapeake Energy Corporation (NYSE:CHK) shares went down -0.37% in Friday’s session, putting the price tag at $2.72 plus $2.49B in market capitalization. Earlier in the session, the stock traded between $2.66 and $2.77. Trading activity significantly weakened as the volume at ready counter decreased to 40,324,971 shares versus 51,659,090 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 49,003,051 shares. The stock is now 59.06% above against its bear-market low of $1.71 on December 24, 2018. It has retreated -105.88% since it’s 52-week high of $5.6 reached in July. Now the market price is down -32% on the year and up 29.52% YTD.
CHK’s 50 day simple moving average (SMA 50) price is $2.85 and its 200-day simple moving average (SMA 200) price is $3.89. The company’s stock currently has a total float of 897.72M shares. Its weekly volatility is hovering around 8.04% and felt 9.15% volatility in price over a month. On the upside, the share price will test short term resistance at around $2.77. On a downside, the stock is likely to find some support, which begins at $2.66. The failure to get near-term support could push it to $2.61.
Separately, it has been reported that multiple insider activity took place at Chesapeake Energy Corporation (CHK). Director Ryan Thomas L acquired 200,000 shares for $743,519 in transaction occurred on 2018/12/24. After making this transaction, the Director owns a direct stake of 362,000 shares, worth $2,022,372, as per the last closing price. On 2018/12/21 Pigott M. Jason, EVP – Operations at CHK, purchased 11,000 shares at an average price of $1.93 per share. The new stake is valued at $2,708,821.
Director, Dunham Archie W had invested in 2,100,000 shares for $9,347,375 through a trade on 2018/12/21. Following this activity, the insider holds 4,137,000 shares worth $25,424,860 as of recent close. Wall Street’s most bullish Chesapeake Energy Corporation (NYSE:CHK) analysts are predicting the share price to blow past $5 per share during the next 12 months. The current median share price forecast by them is $3, suggesting that the stock could increase 10.29% in that time frame. The average price target of $3.11 calls for a nearly 14.34% increase in the stock price.
It had seen a change in price target from analysts at Imperial Capital, who reiterated the stock at In-line on January 10 but moved PT from $5 to $3. Analysts at BofA/Merrill, shed their positive views on January 04 by lowering it fromNeutral to Underperform. The stock lost favor of CapitalOne analysts who expressed their lack of confidence in it using a downgrade from Overweight to Underweight on December 20.
When looking at valuations, Chesapeake Energy Corporation (CHK) has a cheap P/E of 4.41x as compared to industry average of 16.71x. Moreover, it trades for 4.44 times the next 12 months of expected earnings. Compared to others, Chesapeake Energy Corporation is in a different league with regards to profitability, having net margins of 6.1%. To put some perspective around this, the industry’s average net margin is 6.89%. CHK’s ROE is -30.5%, which is also considerably worse than the industry’s ROE of 6.89%. It’s also not liquid in the near term, with a current ratio of 0.4. The stock has a debt/capital of 0.
Shares of Chesapeake Energy Corporation (CHK) have dropped -26.9% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Chesapeake Energy Corporation (NYSE:CHK) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 1 quarters (8%), whereas at 0 occasion EPS met analyst expectations. CHK last reported earnings on October 30, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.19 per share, -99.25% change on the same period last year. That was better than consensus for $0.15. Revenue for the recent quarter stood at $2.42 billion, up 24% on last year and above the $2.35 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.02 billion to $2.02 billion, which should be compared with $2.35 billion generated last year. EPS is seen in a range of $0.1 to $0.25, against the $0.2 reported a year ago.