Chesapeake Energy Stock Attempts Rebound Despite Bear Note

The stock has shed more than 70% over the past 12 months

Managing Editor
Aug 8, 2019 at 9:24 AM
facebook twitter linkedin

Oklahoma-based Chesapeake Energy Corporation (NYSE:CHK) is moving higher this morning, despite receiving a bear note from Raymond James. The firm downgraded to "market perform" from "outperform," and UBS just came with with its price-target cut to $1 from $1.60 -- though the stock seems unaffected, last seen 1.4% higher right before the open, a move that would put it at $1.41. 

Chesapeake Energy stock looks to be attempting a rebound following the company's grim second-quarter report this past Tuesday, Aug. 6. The energy name shared a quarterly loss of 10 cents per share, resulting in yesterday's record low of $1.26. With added pressure from the 30- and 40-day moving averages, CHK has now shed 70% over the past 12 months.

Circling back to analysts, 21 of 25 sport a tepid "hold," "sell," or "strong sell" rating on the stock. However, there still remains potential for even more bear notes, with the stock's average 12-month price target standing 66.9% above current trading levels.

Lastly, short interest on CHK rose 33% during the most recent reporting period, and now accounts for over 14% of the stock's total available float. At the security's average pace of trading, it would take shorts almost a full week to buy back their bearish bets.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners