Chesapeake Energy Corporation (NYSE:CHK) [Trend Analysis] has kept up with the changing appetite, stock declined around -4.36% in early session as it gain volume of 42.15 Million shares as compare to its average volume of 48438.35 shares and then traded at $4.17.
Chesapeake Energy Corp. released that it would swap 4.1% of its shares outstanding for debt, the latest move by the beleaguered energy company to ease its debt load as it struggles with low natural gas prices. The Oklahoma City company (CHK) revealed in a regulatory filing that it will issue 28.1 million shares, worth $122.5 million based on Wednesday’s closing price, to redeem $153 million in debt. The contract by bondholders to make the swap suggests they may not see the company as headed toward bankruptcy. In the event of a bankruptcy, bondholders are paid first whereas stockholders are lower on the chain.
Chesapeake has a significant amount of debt due starting in 2017, and “they’re starting to find creative ways to ease that wall of maturities coming,” said Tim Revzan, analyst at CRT Sterne Agee. “It’s not a game changer,” but the move shows that Chesapeake is willing to explore options for bringing down debt while waiting for gas prices to bounce, Mr. Revzan said.
Moving toward the volatility measures, the price volatility of stock was 18.23% for a week and 10.73% for a month as well as price volatility’s Average True Range for 14 days was 0.62. The beta, which indicates risk in relegation to the market, remained 1.75. The firm past twelve months price to sales ratio was 0.28 and price to cash ratio remained 220.66. As far as the returns are concern, return on investment was -145.70%, while its return on asset stayed at -58.30%.
Noting a main crunch of analyst research by WSJ, CHK under observation of quarterly per share earnings, it has second quarter 2016 trend of $-0.11, while in next quarter estimated EPS trend is $-0.05 and for annual basis for 2016 estimated EPS is $-0.41.
Relatively pool of WSJ analyst issues diverse rating, as for current level it has 3 experts rated as “BUY” security, 1 analyst recommend as “Overweight,” and 22 experts rated as “Hold”. The Company has gross margin of 74.30% and profit margin was negative -94.30% in trailing twelve months.
Chesapeake Energy Corporation (NYSE:CHK) is ahead its 52 week low with 178.00%and going down from its 52 week high price with -73.54%. The company’s shares performance for the last one month was -31.19% and -26.97% in the previous week. The stock price of firm is moving down from its 20 days moving average with -29.42% and remote isolated negatively from 50 days moving average with -16.75%.