Chesapeake Energy Corporation (CHK) is an interesting player in the Basic Materials space, with a focus on Independent Oil & Gas. The stock has been active on the tape, currently trading at $6.08, down from yesterday’s close by -3.80%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Does this stock stack up well when compared to its peers in the industry space? Let’s take a look. Chesapeake Energy Corporation (CHK) currently trades with a market capitalization of $5.34 Billion. That value represents a market adjusting for revenues that have been falling by -32.58 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CHK, the company currently has $4 Million of cash on the books, which is offset by $656 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-541 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.06 on a per share basis this quarter. Perhaps, that suggests something about why 3.79% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Chesapeake Energy Corporation recorded a 52-week high of $8.20. It is now trading 2.12% off that level. The stock is trading $6.92 its 50-day moving average by 0.84%. The stock carved out a 52-week low down at $1.65.

In recent action, Chesapeake Energy Corporation (CHK) has made a move of -8.16% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 21.92, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 12.69% with $877.65 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CHK.