Chesapeake Energy Corporation (NYSE:CHK) is among the top losers of the stock market today, sinking -3.7% or (-0.07 points) to $1.82 from its previous close of $1.89. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 99335640 contracts so far this session. CHK shares had a relatively better volume day versus average trading capacity of 49.67 million shares, but with a 1.62 billion float and a 31.25% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CHK stock indicates that the average analyst price target is $2.03 per share. This means the stock has a potential increase of 11.54% from where the CHK share price has been trading recently which is between $1.6 and $1.9.
The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Chesapeake Energy stock falls after issuing 250.7 million common shares in exchange for debt, preferred stock” and dated September 10, 2019.
During the recent trading session for Chesapeake Energy Corporation (NYSE:CHK), the company witnessed their stock rise $0.46 over a week and surge $0.44 from the price 20 days ago. When compared to their established 52-week high of $4.98, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 10/09/18. The recent low of $1.26 stood for a -63.45% since 08/07/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.48 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Chesapeake Energy Corporation, the two-week RSI stands at 59.74. This figure suggests that CHK stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current CHK readings is similarly very revealing as it has a stochastic reading of 79.24% at this stage. This figure means that CHK share price today is being oversold.
Technical chart claims that Chesapeake Energy Corporation (CHK) would settle between $1.99/share to $2.1/share level. However, if the stock price goes below the $1.69 mark, then the market for Chesapeake Energy Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $1.5 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.19. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Raymond James lowered their recommendation on shares of CHK from Outperform to Mkt Perform in their opinion released on August 08. Morgan Stanley analysts bumped their rating on Chesapeake Energy Corporation (NYSE:CHK) stock from Equal-Weight to Overweight in a separate flash note issued to investors on June 28. Analysts at Argus lowered the stock to a Sell call from its previous Hold recommendation, in a research note that dated back to May 09.
CHK equity has an average rating of 3.27, with the figure leaning towards a bullish end. 15 analysts who tracked the company were contacted by Reuters. Amongst them, 8 rated the stock as a hold while the remaining 7 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 2 analysts rated Chesapeake Energy Corporation (NYSE:CHK) as a buy or a strong buy while 5 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, CHK stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is 4.3 while for the average stock in the same group, the multiple is 9.46. Chesapeake Energy Corporation current P/B ratio of 1.21 means it is trading at a premium against its industry’s 0.74.
Chesapeake Energy Corporation (CHK)’s current-quarter revenues are projected to climb by nearly 0.11% to hit $1.2 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -6.12% from $5.16 billion to a noteworthy $4.84 billion. At the other end of the current quarter income statement, Chesapeake Energy Corporation is expected to see its adjusted earnings surge by roughly -142.11% to hit $-0.08 per share. For the fiscal year, CHK’s earnings are projected to climb by roughly -128.89% to hit $-0.26 per share.