Chesapeake Energy (NASDAQ:CHK) to Buyback $2.00 billion in Outstanding Stock

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

Several research analysts have commented on the company. Wolfe Research raised 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. Wells Fargo & Company upped their price objective on Chesapeake Energy from $88.00 to $98.00 and gave the company an “overweight” rating in a research note on Monday, March 14th. Credit Suisse Group initiated coverage on 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 cut shares of Chesapeake Energy from a “c-” rating to a “d” rating in a report on Thursday, May 5th. Finally, Royal Bank of Canada lifted their target price on Chesapeake Energy from $88.00 to $98.00 and gave the company an “outperform” rating in a research note on Tuesday, March 8th. Twelve equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $90.91.

Shares of CHK stock traded down $6.45 during trading hours 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 company has a 50 day moving average of $90.85 and a 200 day moving average of $79.29. The firm has a market cap of $9.72 billion, a price-to-earnings ratio of -24.01, a P/E/G ratio of 0.97 and a beta of 0.13. 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 has a 1-year low of $48.19 and a 1-year high of $105.00.

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

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

In other news, major shareholder Holdings L.P. Blackstone III sold 6,965 shares of the company’s stock in a transaction that occurred on Thursday, April 14th. The shares were sold at an average price of $95.05, for a total transaction of $662,023.25. Following the completion of the sale, the insider now owns 4,217,146 shares of the company’s stock, valued at approximately $400,839,727.30. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Joshua J. Viets acquired 2,450 shares of the company’s stock in a transaction that occurred on Thursday, June 16th. The shares were acquired at an average price of $84.41 per share, with a total value of $206,804.50. Following the completion of the transaction, the chief operating officer now owns 25,804 shares in the company, valued at $2,178,115.64. The disclosure for this purchase can be found here. Insiders have sold a total of 205,986 shares of company stock valued at $19,823,966 in the last ninety days. 1.10% of the stock is currently owned by insiders.

Chesapeake Energy Company Profile (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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