Zacks Investment Research cut shares of Chesapeake Energy (NYSE:CHK) from a hold rating to a sell rating in a research report report published 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.”
CHK has been the topic of several other reports. SunTrust Banks reaffirmed a buy rating and issued a $6.00 target price on shares of Chesapeake Energy in a research report on Wednesday, January 3rd. Stephens reaffirmed a hold rating and issued a $5.00 target price on shares of Chesapeake Energy in a research report on Thursday, March 15th. Scotiabank set a $4.00 target price on Chesapeake Energy and gave the stock a hold rating in a research report on Wednesday, November 22nd. Piper Jaffray Companies reissued a hold rating and issued a $3.00 price objective on shares of Chesapeake Energy in a research report on Thursday, March 15th. Finally, UBS began coverage on Chesapeake Energy in a research report on Wednesday, March 7th. They issued a buy rating and a $2.80 price objective on the stock. Eight investment analysts have rated the stock with a sell rating, twelve have issued a hold rating, five have given a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of Hold and a consensus price target of $4.90.
CHK stock opened at $3.23 on Wednesday. The company has a debt-to-equity ratio of -4.86, a current ratio of 0.65 and a quick ratio of 0.65. The firm has a market capitalization of $2,827.74, a price-to-earnings ratio of 3.89 and a beta of 1.90. Chesapeake Energy has a 52-week low of $2.53 and a 52-week high of $6.59.
Chesapeake Energy (NYSE:CHK) last issued its earnings results on Thursday, February 22nd. The oil and gas exploration company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.05. The business had revenue of $2.52 billion for the quarter, compared to analyst estimates of $1.26 billion. Chesapeake Energy had a negative return on equity of 32.26% and a net margin of 9.73%. The business’s quarterly revenue was up 24.6% on a year-over-year basis. During the same period last year, the company posted $0.07 EPS. analysts predict that Chesapeake Energy will post 0.74 earnings per share for the current fiscal year.
Several institutional investors have recently made changes to their positions in CHK. Financial Partners Group Inc acquired a new stake in shares of Chesapeake Energy during the fourth quarter valued at about $114,000. Brave Asset Management Inc. grew its stake in shares of Chesapeake Energy by 154.2% during the third quarter. Brave Asset Management Inc. now owns 38,130 shares of the oil and gas exploration company’s stock valued at $164,000 after acquiring an additional 23,130 shares in the last quarter. Crossmark Global Holdings Inc. acquired a new position in Chesapeake Energy in the third quarter worth about $170,000. All Terrain Financial Advisors LLC acquired a new position in Chesapeake Energy in the fourth quarter worth about $170,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Chesapeake Energy by 41.5% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 53,909 shares of the oil and gas exploration company’s stock worth $213,000 after purchasing an additional 15,804 shares in the last quarter. Institutional investors own 61.89% of the company’s stock.
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About Chesapeake Energy
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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