Chesapeake Energy (NASDAQ:CHK) Board Authorizes Share Buyback Plan

Chesapeake Energy (NASDAQ:CHKGet Rating) declared that its board has authorized a share buyback program on Wednesday, June 22nd, RTT News reports. The company plans to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 20.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Several equities analysts recently issued reports on the stock. Credit Suisse Group started coverage on shares of Chesapeake Energy in a research note on Tuesday, June 14th. They set an “outperform” rating and a $115.00 price objective on the stock. TheStreet lowered Chesapeake Energy from a “c-” rating to a “d” rating in a research note on Thursday, May 5th. Wolfe Research lifted their price objective on Chesapeake Energy from $104.00 to $111.00 and gave the company an “outperform” rating in a research report on Tuesday, April 5th. Royal Bank of Canada increased their target price on Chesapeake Energy from $88.00 to $98.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 8th. Finally, Wells Fargo & Company raised their price target on Chesapeake Energy from $88.00 to $98.00 and gave the stock an “overweight” rating in a research note on Monday, March 14th. Twelve analysts have rated the stock with a buy rating, According to data from MarketBeat.com, Chesapeake Energy has a consensus rating of “Buy” and a consensus price target of $90.91.

NASDAQ CHK traded down $6.45 on Thursday, reaching $76.34. The company had a trading volume of 4,051,317 shares, compared to its average volume of 1,947,987. The firm has a market capitalization of $9.72 billion, a PE ratio of -24.01, a P/E/G ratio of 0.97 and a beta of 0.13. Chesapeake Energy has a 1 year low of $48.19 and a 1 year high of $105.00. The firm has a 50-day moving average of $90.85 and a 200-day moving average of $79.29. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.34 and a quick ratio of 0.34.

Chesapeake Energy (NASDAQ:CHKGet Rating) last released its earnings results on Wednesday, May 4th. The company reported $3.09 EPS for the quarter, beating the consensus estimate of $2.46 by $0.63. The company had revenue of $935.00 million during the quarter, compared to analysts’ expectations of $1.34 billion. Chesapeake Energy had a positive return on equity of 27.28% and a negative net margin of 2.03%. Chesapeake Energy’s revenue for the quarter was up 6.3% on a year-over-year basis. As a group, sell-side analysts expect that Chesapeake Energy will post 13.75 EPS for the current fiscal year.

The firm also recently announced a None dividend, which was paid on Thursday, June 2nd. Stockholders of record on Thursday, May 19th were paid a dividend of $2.34 per share. This is a boost from Chesapeake Energy’s previous None dividend of $0.44. This represents a dividend yield of 2.1%. The ex-dividend date of this dividend was Wednesday, May 18th. Chesapeake Energy’s dividend payout ratio is -62.89%.

In related news, major shareholder Holdings L.P. Blackstone III sold 4,236 shares of the firm’s stock in a transaction on Wednesday, May 25th. The stock was sold at an average price of $100.11, for a total transaction of $424,065.96. Following the transaction, the insider now directly owns 1,311,663 shares in the company, valued at $131,310,582.93. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Joshua J. Viets acquired 2,450 shares of Chesapeake Energy stock in a transaction that occurred on Thursday, June 16th. The shares were purchased at an average price of $84.41 per share, for a total transaction of $206,804.50. Following the completion of the purchase, the chief operating officer now directly owns 25,804 shares of the company’s stock, valued at $2,178,115.64. The disclosure for this purchase can be found here. Over the last quarter, insiders have sold 205,986 shares of company stock valued at $19,823,966. Company insiders own 1.10% of the company’s stock.

About Chesapeake Energy (Get Rating)

Chesapeake Energy Corporation, an independent exploration and production company, engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs in the United States. The company holds interests in natural gas resource plays in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania and the Haynesville/Bossier Shales in northwestern Louisiana; and the liquids-rich resource play in the Eagle Ford Shale in South Texas.

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