Chesapeake Energy Breaks Losing Streak to Nudge Higher, Nearing Year-End Lows

Published On: January 24, 2024 4:45 pm

oil field, the oil workers are working — Image: zhengzaishuru/iStock via Getty Images

Update: 1636 ET: Stock closing price

After enduring a six-day losing streak, Chesapeake Energy (NASDAQ:CHK) managed to eke out a gain on Wednesday for the first time since Jan. 12.

The natural gas producer saw a modest rise of 2.07% to $76.44 by the closing bell. Throughout its recent slump, it had shed about 9.62%. As of now, the stock is teetering close to its lows from late December 2023. Over the past 12 months, CHK has softened by approximately 15%. The total short interest in the company stands at 11.02%.

Assessing Seeking Alpha’s Quant ratings, Chesapeake had garnered a Buy rating with a score of 4.35 out of 5. The company received an A for profitability and an A- for its valuation. Meanwhile, its momentum prospects received a C-, an improvement from a D+ six months ago.

Shifting attention to the Wall Street community, approximately 12 sell-side analysts polled in the last 90 days rated CHK as a Buy or higher. Another five analysts recommended the stock as a Hold.

Seeking Alpha analysts generally viewed the Oklahoma City-based company as a Hold. SA Analyst Michael Del Monte also endorsed the company as a Hold, expressing that the company is well-positioned for increased LNG export capacity, with 2.7 Bcf/d of capacity coming online by the end of 2024.

“Considering the market opportunity ahead of the firm along with the short-term challenges, I believe CHK should be trading closer to 3x EV/EBITDA based on historical pricing,” the analyst added.

Chesapeake is expected to report fiscal fourth-quarter results on Feb. 21. A consensus of analysts anticipates the company to earn $0.56 per share on $943.75M in revenue.