Analysts Give Chesapeake Energy Corporation (CHK) Mixed Reviews

Analysts at Citigroup upped their rating on shares of Chesapeake Energy Corporation (NYSE:CHK) from Sell to Neutral in their opinion released on November 12. Susquehanna analysts bumped their recommendation on CHK stock from Neutral to Positive in a separate flash note to investors on October 31.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Chesapeake Energy Corporation (NYSE:CHK)’s prospects. The earliest insider trade took place on 11/01/2018. Webb James R gathered a total of 50 thousand shares of company at average share price of $3.54. The total for the purchase was set at $177 thousand. After this transaction, the EVP-Gen’l Counsel & Corp. Sec. account balance stood at 871.55 thousand shares. The stock lost -18.36 percent since that insider purchase. On 08/11/2017, Martin R Brad, Director, purchased 25 thousand shares at a price per share of $4.11. This added 102.75 thousand shares to the insider’s fortune and the stock saw a -29.68 percent retreat in value since the news became public. This transaction left 562.36 thousand shares in the Director account. On 06/23/2017, Director Martin R Brad performed a purchase transaction worth $92.82 thousand. This purchase at $4.55 each has added 20.4 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -36.48 percent decrease since the transaction was reported. The insider now is left with 537.36 thousand shares remaining in the account. Ryan Thomas L, who performs the Director job, bought 75 thousand shares for $375 thousand. The acquisition occurred on 05/31/2017 was priced at $5 per share. The share price plunged -42.2 percent since the reporting date. Ryan Thomas L now left with a stake of 440.36 thousand CHK stock worth $1.27 million after the insider buying.

Chesapeake Energy Corporation (CHK) is expected to jump by 51.56 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $8-month high price target. This represents a whopping 176.82 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $4.88, which represents a return potential of 68.86 percent when compared to the closing price of the stock of $2.89 on Tuesday, December 04. The lowest price target for the stock is $2 — slightly more than -30.8 percent from CHK’s current share price.

The shares are currently floating around the first support level of $2.81. Below this, the next support is placed in the zone of $2.74. Till the time, the CHK stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 34.17 on daily chart, which may remain a cause for comfort. If the price breaks below $2.74 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $3.04 mark may result into a pull-back move towards $3.2 level.

CHK shares dropped -0.2 points or -6.47 percent on Tuesday to $2.89 with a heavy trade volume of 36.836 million shares. After opening the session at $3.1, the shares went as high as $3.12 and as low as $2.89, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.74 billion and now has 948.12 million shares outstanding. Chesapeake Energy Corporation (CHK) stock has lost -17.19 percent of market value in 21 trading days.

CHK stock has a trailing 3-year beta of 1.98, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.62 a share in the trailing twelve months. The stock’s value has fallen -27.02 percent year to date (YTD) against a decline of -26.84 percent in 12 month’s time. The company’s shares still trade -48.39 percent away from its 1-year high of $5.60 and 14.23 percent up from 52-week low of $2.53. The average consensus rating on the company is 3.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Chesapeake Energy Corporation (CHK) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry CHK operates in has an average P/E of 14.32. Its P/E ratio went as low as 11.87X and as high as 35.36 over the 5-year span. Further, it is sporting a 0.28 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.94. 78.1 percent is the gross profit margin for Chesapeake Energy Corporation and operating margin sits at 10.1 percent. Along with this, the net profit margin is 6.1 percent.

CHK will be showing off its Q4 earnings on February 21. Analysts are forecasting revenue to suffer decline of -14.1 percent to $2.16B in the next fiscal quarter, while earnings are seen soaring by nearly -46.67 percent to $0.16 per share. History has shown that shares in Chesapeake Energy Corporation have gone down on 22 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.19 per share, better than the $0.15, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.42B, better than the $2.35B analysts expected. Earnings are estimated to increase by 113.9 percent this year, 0.12 percent next year and continue to increase by 9.6 percent annually for the next 5 years.