Chesapeake Energy (NYSE:CHK) Shares Down 6.8% on Disappointing Earnings

Shares of Chesapeake Energy Co. (NYSE:CHK) traded down 6.8% during trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $1.38 and last traded at $1.30, 42,370,678 shares traded hands during mid-day trading. A decline of 11% from the average session volume of 47,853,720 shares. The stock had previously closed at $1.39.

The oil and gas exploration company reported ($0.10) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.03). Chesapeake Energy had a negative return on equity of 138.70% and a net margin of 5.39%. The company had revenue of $2.37 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same period in the previous year, the business posted $0.15 earnings per share. The firm’s revenue was up 5.1% compared to the same quarter last year.

Several analysts have recently commented on the company. Morgan Stanley raised Chesapeake Energy from an “equal weight” rating to an “overweight” rating and raised their price target for the company from $1.94 to $2.75 in a report on Friday, June 28th. Zacks Investment Research cut Chesapeake Energy from a “hold” rating to a “sell” rating in a report on Thursday, May 16th. Goldman Sachs Group cut Chesapeake Energy from a “neutral” rating to a “sell” rating and reduced their price target for the company from $2.75 to $2.50 in a report on Friday, April 12th. They noted that the move was a valuation call. UBS Group set a $2.00 price target on Chesapeake Energy and gave the company a “sell” rating in a report on Thursday, June 20th. Finally, TheStreet cut Chesapeake Energy from a “c” rating to a “d+” rating in a report on Wednesday, May 8th. Ten analysts have rated the stock with a sell rating, six have given a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $3.46.

In other Chesapeake Energy news, CEO Robert D. Lawler purchased 50,000 shares of Chesapeake Energy stock in a transaction dated Friday, May 24th. The stock was acquired at an average cost of $2.02 per share, with a total value of $101,000.00. Following the acquisition, the chief executive officer now directly owns 5,083,298 shares of the company’s stock, valued at $10,268,261.96. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. 1.90% of the stock is owned by company insiders.

A number of hedge funds have recently modified their holdings of CHK. Carlyle Group L.P. acquired a new position in Chesapeake Energy during the first quarter worth $535,982,000. Norges Bank acquired a new position in Chesapeake Energy during the fourth quarter worth $21,828,000. Fiera Capital Corp acquired a new position in Chesapeake Energy during the first quarter worth $23,597,000. Majedie Asset Management Ltd acquired a new position in Chesapeake Energy during the first quarter worth $8,883,000. Finally, First Trust Advisors LP raised its holdings in Chesapeake Energy by 1,049.3% during the second quarter. First Trust Advisors LP now owns 928,917 shares of the oil and gas exploration company’s stock worth $1,811,000 after purchasing an additional 848,089 shares during the last quarter. 70.10% of the stock is owned by hedge funds and other institutional investors.

The stock has a fifty day simple moving average of $1.78. The stock has a market capitalization of $2.27 billion, a PE ratio of 1.44 and a beta of 2.43. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 3.72.

Chesapeake Energy Company Profile (NYSE:CHK)

Chesapeake Energy Corporation engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids (NGL) from underground reservoirs in the United States. The company holds interests in natural gas resource plays, including the Marcellus in Northern Appalachian Basin in Pennsylvania; Haynesville located in Northwestern Louisiana; Eagle Ford in South Texas; Brazos Valley in Southeast Texas; Powder River Basin in Wyoming; and Mid-Continent in Anadarko Basin of northwestern Oklahoma.

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