Could Chesapeake Energy Corporation (CHK) Be a Millionaire-Maker Stock?

Taking everything into account, Chesapeake Energy Corporation (NYSE:CHK) scores 96% Sell on the technical side. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the CHK’s short-term trajectory should know that short terms indicators for the stock averaged 80% Sell with an average daily trading volume over the past 20 days at 32958605 shares. CHK stock has overall a 1% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 33015875 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $2.61. Below this, the next support is placed in the zone of $2.51. Till the time, the CHK stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 30.21 on daily chart, which may remain a cause for comfort. If the price breaks below $2.51 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $2.82 mark may result into a pull-back move towards $2.93 level.

Chesapeake Energy Corporation (CHK) is projected to climb by 61.03 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 194.12 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $4.75, which represents a return potential of 74.63 percent when compared to the closing price of the stock of $2.72 on Thursday, December 06. The lowest price target for the stock is $2 — slightly more than -26.47 percent from CHK’s current share price.

Here’s a rundown of insider trading activity for sense of Chesapeake Energy Corporation (NYSE:CHK). 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 -23.16 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 -33.82 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 -40.22 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 -45.6 percent since the reporting date. Ryan Thomas L now left with a stake of 440.36 thousand CHK stock worth $1.2 million after the insider buying.

CHK shares dropped -0.17 points or -5.88 percent on Thursday to $2.72 with a heavy trade volume of 56.167 million shares. After opening the session at $2.82, the shares went as high as $2.82 and as low as $2.61, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.58 billion and now has 948.12 million shares outstanding. Chesapeake Energy Corporation (CHK) stock has lost -28.23 percent of market value in 21 trading days.

Analysts at MKM Partners, assumed coverage of Chesapeake Energy Corporation (NYSE:CHK) with Neutral recommendation, according to their opinion released on December 06. Citigroup analysts bumped their recommendation on CHK stock from Sell to Neutral in a separate flash note to investors on November 12. Analysts at Susquehanna issued an upgrade from Neutral to Positive for the stock, in a research note that dated back to October 31.

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 -31.31 percent year to date (YTD) against a decline of -30.61 percent in 12 month’s time. The company’s shares still trade -51.43 percent away from its 1-year high of $5.60 and 7.51 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 0.27 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 declaring its Q4 financial results on February 21. Analysts are forecasting revenue to suffer decline of -12.1 percent to $2.21B in the next fiscal quarter, while earnings are seen soaring by nearly -43.33 percent to $0.17 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.