Taking a Fresh Look at Chesapeake Energy Corporation (CHK)

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 $4.29, up from yesterday’s close by 9.16%. 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

Chesapeake Energy Corporation (CHK) currently trades with a market capitalization of $3.89 Billion. That value represents a market adjusting for revenues that have been falling by -9.59 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$1.17 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.14 on a per share basis this quarter. Perhaps, that suggests something about why 4.17% 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 $5.87. It is now trading 1.58% off that level. The stock is trading $3.12 its 50-day moving average by -1.17%. The stock carved out a 52-week low down at $2.53.

In recent action, Chesapeake Energy Corporation (CHK) has made a move of +41.58% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.08, 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 21.28% with $902.00 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CHK.

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