Chesapeake Energy Corp. (NASDAQ: CHK)’s stock price has soared by 2.29 in relation to previous closing price of 78.46. Nevertheless, the company has seen a gain of 9.85% in its stock price over the last five trading days. marketbeat.com reported 2024-09-20 that The stock market is about to make a major shift, this time driven by the shift in monetary policy set on by the Federal Reserve (the Fed). After the most recent meeting to decide the new path of interest rates for the United States, Jerome Powell (the Fed chairman) cut interest rates by the most aggressive pace in 16 years.
Is It Worth Investing in Chesapeake Energy Corp. (NASDAQ: CHK) Right Now?
Chesapeake Energy Corp. (NASDAQ: CHK) has a higher price-to-earnings ratio of 27.06x compared to its average ratio, The 36-month beta value for CHK is at 0.45. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 1 rating it as “overweight,” 19 as “hold,” and 5 as “sell.”
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The public float for CHK is 108.37M, and currently, shorts hold a 17.55% of that float. The average trading volume for CHK on September 24, 2024 was 1.92M shares.
CHK’s Market Performance
CHK stock saw an increase of 9.85% in the past week, with a monthly gain of 12.08% and a quarterly increase of -5.33%. The volatility ratio for the week is 2.93%, and the volatility levels for the last 30 days are 2.58% for Chesapeake Energy Corp. (CHK). The simple moving average for the last 20 days is 9.86% for CHK’s stock, with a simple moving average of -1.03% for the last 200 days.
Analysts’ Opinion of CHK
Many brokerage firms have already submitted their reports for CHK stocks, with Wolfe Research repeating the rating for CHK by listing it as a “Outperform.” The predicted price for CHK in the upcoming period, according to Wolfe Research is $110 based on the research report published on July 18, 2024 of the current year 2024.
Barclays, on the other hand, stated in their research note that they expect to see CHK reach a price target of $102. The rating they have provided for CHK stocks is “Equal Weight” according to the report published on April 10th, 2024.
CHK Trading at 7.31% from the 50-Day Moving Average
After a stumble in the market that brought CHK to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -14.10% of loss for the given period.
Volatility was left at 2.58%, however, over the last 30 days, the volatility rate increased by 2.93%, as shares surge +9.29% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.86% lower at present.
During the last 5 trading sessions, CHK rose by +9.85%, which changed the moving average for the period of 200-days by +5.07% in comparison to the 20-day moving average, which settled at $73.40. In addition, Chesapeake Energy Corp. saw 4.48% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for CHK
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.56 for the gross margin
The net margin for Chesapeake Energy Corp. stands at 0.09. The total capital return value is set at 0.05. Equity return is now at value 4.22, with 3.12 for asset returns.
Based on Chesapeake Energy Corp. (CHK), the company’s capital structure generated 0.17 points at debt to capital in total, while cash flow to debt ratio is standing at 0.84. The debt to equity ratio resting at 0.2. The interest coverage ratio of the stock is 13.07.
Currently, EBITDA for the company is 3.98 billion with net debt to EBITDA at 0.48. When we switch over and look at the enterprise to sales, we see a ratio of 2.35. The receivables turnover for the company is 14.02for trailing twelve months and the total asset turnover is 0.36. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.16.
Conclusion
In conclusion, Chesapeake Energy Corp. (CHK) has had a mixed performance lately. Opinion on the stock among analysts is bearish, with some giving it a “sell” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
