Zacks Investment Research lowered shares of Chesapeake Energy (NYSE:CHK) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning.
According to Zacks, “Chesapeake has underperformed the broader market indices over the last year. The company has declined by 37.8%, in comparison; the industry has decreased by 10.1%, during the aforesaid period. Though Chesapeake’s ongoing asset monetization initiatives are working well, the company’s balance sheet is still more leveraged than its peers. The company’s debt to capitalization ratio stands at 104.44%, significantly higher than the industry’s 46.7%. At the end of the fourth quarter, the debt balance was $9.9 billion compared with negligible cash balance of $5 million in the balance sheet. This also restricts its ability to gain capital from markets and also reduces its credibility for shareholders.”
Several other research firms have also recently issued reports on CHK. Mizuho cut shares of Chesapeake Energy from a neutral rating to an underperform rating and upped their target price for the company from $4.28 to $8.00 in a research note on Tuesday, January 16th. SunTrust Banks restated a buy rating and set a $6.00 target price on shares of Chesapeake Energy in a research note on Wednesday, January 3rd. Piper Jaffray Companies restated a hold rating and set a $5.00 target price on shares of Chesapeake Energy in a research note on Tuesday, January 9th. ValuEngine cut shares of Chesapeake Energy from a buy rating to a hold rating in a research note on Sunday, December 31st. Finally, Credit Suisse Group assumed coverage on shares of Chesapeake Energy in a research note on Monday, December 11th. They set an underperform rating and a $3.00 target price on the stock. Eight research analysts have rated the stock with a sell rating, twelve have assigned a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. Chesapeake Energy presently has an average rating of Hold and a consensus price target of $4.90.
Chesapeake Energy (NYSE:CHK) last posted its earnings results on Thursday, February 22nd. The oil and gas exploration company reported $0.30 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.05. The business had revenue of $2.52 billion for the quarter, compared to analysts’ expectations of $1.26 billion. Chesapeake Energy had a net margin of 9.73% and a negative return on equity of 32.26%. The business’s revenue for the quarter was up 24.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.07 EPS. equities research analysts forecast that Chesapeake Energy will post 0.74 earnings per share for the current fiscal year.
A number of institutional investors have recently added to or reduced their stakes in CHK. Schwab Charles Investment Management Inc. increased its holdings in Chesapeake Energy by 55.6% in the 3rd quarter. Schwab Charles Investment Management Inc. now owns 6,181,585 shares of the oil and gas exploration company’s stock worth $26,581,000 after acquiring an additional 2,208,035 shares in the last quarter. Guggenheim Capital LLC increased its holdings in Chesapeake Energy by 21.5% in the 4th quarter. Guggenheim Capital LLC now owns 11,511,578 shares of the oil and gas exploration company’s stock worth $45,586,000 after acquiring an additional 2,035,111 shares in the last quarter. Old West Investment Management LLC increased its holdings in Chesapeake Energy by 96.3% in the 3rd quarter. Old West Investment Management LLC now owns 2,157,554 shares of the oil and gas exploration company’s stock worth $9,277,000 after acquiring an additional 1,058,477 shares in the last quarter. Creative Planning increased its holdings in Chesapeake Energy by 58.0% in the 4th quarter. Creative Planning now owns 1,762,031 shares of the oil and gas exploration company’s stock worth $6,978,000 after acquiring an additional 646,642 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in Chesapeake Energy by 6.3% in the 3rd quarter. Bank of New York Mellon Corp now owns 6,784,218 shares of the oil and gas exploration company’s stock worth $29,172,000 after acquiring an additional 402,974 shares in the last quarter. 61.89% of the stock is owned by institutional investors.
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Chesapeake Energy Company Profile
Chesapeake Energy Corporation produces natural gas, oil and natural gas liquids (NGL) in the United States. It operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. Exploration and production is engaged in finding and producing oil, natural gas and NGL. Marketing, gathering and compression is engaged in marketing, gathering and compression of oil, natural gas and NGL.
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