Chesapeake Energy Stock Attempts Rebound Despite Bear Note

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

by Emma Duncan

Published on Aug 8, 2019 at 9:24 AM

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.

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