X
<

Chesapeake Energy: Riding High along with Crude Oil Prices

PART:
1 2 3 4
Part 4
Chesapeake Energy: Riding High along with Crude Oil Prices PART 4 OF 4

Chesapeake Energy: The Latest Short Interest Trends

Short interest trends

Short interest as a percentage of float, or the short interest ratio, in Chesapeake Energy (CHK) stock was ~19.1% on November 10. In comparison, at the beginning of the year, in January 2017, the short interest ratio in Chesapeake Energy stock was ~12%.

Chesapeake Energy: The Latest Short Interest Trends

Interested in AR? Don't miss the next report.

Receive e-mail alerts for new research on AR

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

As we note, short interest in CHK stock has risen significantly since the beginning of this year while the stock itself has fallen just as significantly. Rising short interest in a stock indicates rising bearish sentiment.

CHK stock has fallen from $6.92 at the beginning of the year to $4.14 as of November 10.

That being said, short interest in CHK stock has fallen from the peak of 22.85% it had touched in mid-July. By the end of 3Q17 (September 30), short interest had fallen to 21.5%, and since then, it has fallen even more—as we saw above. A decline in short interest indicates that at least some investors have cut their negative bets for a stock and don’t see an ongoing downside in the stock anymore.

In this period, CHK’s stock continued to fall. In late September, however, CHK stock started rising. But negative developments such as the announcement of additional debt, lower expected oil production in 3Q17, and lower 3Q17 revenues caused CHK’s stock to drop in October and early November.

However, as you can see, CHK stock started to rise again even as crude oil prices are showing a consistent uptrend (see Part 1 of this series).

In comparison, the short interest in CHK’s peers Antero Resources (AR) and EQT (EQT) is ~10.7% and ~17%, respectively.

EQT announced its 3Q17 earnings on October 26. To learn how the company performed, see Why EQT Stock Fell after Its 3Q17 Earnings.

X

Please select a profession that best describes you: