Tuesday, June 23, 2015

Chesapeake Corporation Shares Fall By 1.8%



The oil digging company has faced a massive downfall in which its shares came down by 1.8% bringing the share price to $11.67.

In a recent press release, it was seen that Chesapeake Energy Corporation fell by a massive 1.8 percent in the last trading session that oil firm went through as of on Friday, June 19. The share price that was recorded by the end of the trading day came around at $11.67 which was taken as a surprisingly low price for the shares to adopt.

This decline was noted down due to the fall in the value of the crude oil that brought about a stir in the energy companies all over the globe. As for the crude oil delivery, it was seen to see a massive dip of 1.9 percent for the month of July, while on the other hand, per barrel price of the oil was seen to be at $59.30. As for the Brent crude oil prices, they also went down by a large difference. The delivery for August of the crude oil (brent) was seen to fall by 2.4 percent, which resulted in the value of one barrel coming around at $62.70.

This fall in the oil industry had been predicted as per a report published by Reuters recently, and the predictions were mentioned in oil forecasts. Even though a fall has been seen in the oil output, the shale oil producing companies seem to be quite bullish about their future as they think that their position in the market is expected to become better in the coming months.

On the other hand, many analysts made coverage on Chesapeake stock and decided to give various ratings. TheStreet equity analysts also carried out a detailed research on the stock activities in which they came to the conclusion of granting the shares of the oil digging firm with a ‘sell’ rating. The reason such a negative rating was presented to the shares of the oil company due to many reasons, among which one of them was the fact that no proper strengths were shown by the firm. The analysts also believe that the current situation shows that the firm’s negativity is far more on the heavier side than any positivity which means that the shareholders and investors have not much to look forward to.

Due to the downgraded position of the shares, the investors in the oil company will not be able to obtain good results out of their shares, which is why they have been guided by the firm to sell their Chesapeake shares. The discouraging return on the shares is one more displeasing factor which has made the analysts turn bearish towards the company.

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