Chesapeake Energy Corporation (NYSE:CHK) shares are listed as Not Rated by Goldman Sachs Group, Inc. (NYSE:GS). The latest report from the firm shows updates to analysts’ estimates to place their forecasts in line with the company’s third quarter filing.
Goldman Sachs Group, Inc. (NYSE:GS) analysts believe shares of Chesapeake Energy Corporation (NYSE:CHK) face two major challenges. First, they see “strong oil growth visibility / execution,” and second they also see a problem for the company in reducing its free cash flow deficit, so that asset sales are not needed in order to keep the balance sheet healthy.
GrizzlyRock Value Partners was up 16.6% for the first quarter, compared to the S&P 500's 5.77% gain and the Russell 2000's 12.44% return. GrizzlyRock's long return was 22.3% gross, while its short return was -2.9% gross. Compared to the Russell 2000, the fund's long portfolio delivered alpha of 10.8%, while its short portfolio delivered alpha Read More
ValueWalk has been following Chesapeake Energy stock closely for some time. As we reported last month, Carl Icahn’s 13D SEC filing showed that he increased his stake in Chesapeake Energy Corporation (NYSE:CHK) significantly. As of that filing, he owned more than 59.6 million shares, which equated to about 9 percent of the company.
ValueWalk’s Jacob Wolinsky speculated that Icahn was preparing to face off with management in a proxy war, because Chesapeake Energy CEO Aubrey McClendon has been criticized for misusing shareholder money and even accused of running a hedge fund on the side. After Icahn’s recent purchase of the stock, he became the company’s second largest shareholder.
Also last month we covered Chesapeake Energy’s debt woes. The company attempted to refinance its debt, but that didn’t help its cash flow problems.
In late morning and afternoon trades today, Chesapeake Energy Corporation (NYSE:CHK) shares were trading about 1 percent higher. The stock has been trending downward in the past five days.