Chesapeake Energy’s “Neutral” Rating Reaffirmed at Zacks (CHK)
Chesapeake Energy (NYSE:CHK)‘s stock had its “neutral” rating reiterated by Zacks in a research note issued to investors on Monday. They currently have a $32.00 target price on the stock. Zacks‘s price target would indicate a potential upside of 5.26% from the company’s current price.
Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on Chesapeake Energy shares. The company reported strong first quarter earnings, due mainly to higher price realizations. Its focus on the liquid-rich plays like Utica Shale is expected to contribute highly to the company’s growth momentum. Going forward, Chesapeake in 2014 expects receding operating costs, lower expected commodity prices, and increased production. Although we appreciate management’s execution and ongoing cost reduction initiatives, we believe billions in asset sales are required to fund this program. Chesapeake also exhibits a weak financial profile with a huge debt balance. Embattled Chesapeake is trying hard to minimize capital expenditure through its divestiture program. As such, we see the stock performing in line with the broader market. “
Shares of Chesapeake Energy (NYSE:CHK) traded up 2.04% on Monday, hitting $31.02. The stock had a trading volume of 3,994,479 shares. Chesapeake Energy has a 52-week low of $20.30 and a 52-week high of $31.49. The stock’s 50-day moving average is $29.54 and its 200-day moving average is $27.24. The company has a market cap of $20.128 billion and a price-to-earnings ratio of 23.90.
Chesapeake Energy (NYSE:CHK) last announced its earnings results on Wednesday, May 7th. The company reported $0.59 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.48 by $0.11. The company had revenue of $5.05 billion for the quarter, compared to the consensus estimate of $4.52 billion. During the same quarter in the prior year, the company posted $0.30 earnings per share. The company’s quarterly revenue was up 47.4% on a year-over-year basis. On average, analysts predict that Chesapeake Energy will post $2.06 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, July 31st. Shareholders of record on Wednesday, July 16th will be paid a dividend of $0.0875 per share. This represents a $0.35 annualized dividend and a dividend yield of 1.15%.
A number of other analysts have also recently weighed in on CHK. Analysts at Deutsche Bank reiterated a “hold” rating on shares of Chesapeake Energy in a research note on Wednesday, June 11th. They now have a $31.00 price target on the stock, up previously from $30.00. Separately, analysts at Oppenheimer raised their price target on shares of Chesapeake Energy from $30.00 to $35.00 in a research note on Wednesday, May 21st. They now have an “outperform” rating on the stock. Finally, analysts at Ned Davis Research upgraded shares of Chesapeake Energy from a “sell” rating to a “neutral” rating in a research note on Monday, May 19th. Sixteen analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Chesapeake Energy presently has a consensus rating of “Hold” and an average price target of $29.39.
Chesapeake Energy Corporation (NYSE:CHK) is a natural gas and oil exploration and production company.
To view Zacks’ full report, visit Zacks’ official website.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.