3 Chesapeake Energy Corporation (CHK) Metrics To Be Aware Of

In the financial blogosphere, there are plenty of metrics for Chesapeake Energy Corporation (NYSE:CHK) readers to pay attention to, but it is smart to take note of a company’s short interest. A couple indicators typically used are: (a) the percentage of a company’s shares that short sellers are currently shorting, in addition to (b) the difference in shorting activity.

Increased short selling typically indicates what it implies: the Street has grown less bullish on a company. Short selling that’s too high, though, may have a bullish effect on share price, as short-ers may be forced to buy their positions.

Within our database, it’s no secret that we pay attention to hedge fund sentiment, but it’s also important to pair this data with aggregate short interest data. In certain instances, big time investors might disclose that they’re short on a certain stock, but it isn’t an SEC requirement. Nonetheless, many retail investors might wish to avoid heavily short sold companies with elevated hedgie support, while others might prefer short-squeeze opportunities. For those looking for a market-beating piggybacking strategy, discover the details of our premium strategy.

With that in mind, let’s take a look at the key data pertaining to Chesapeake Energy Corporation (NYSE:CHK).

Looking at the newest FINRA data, which is released two times each month, we can realize that Chesapeake Energy Corporation (NYSE:CHK) has a short interest of 12.20% of float. This represents a slight increase from the prior filing period. With a total float of 579.64M shares, this represents a short ratio of 5.1.

It’s also important to take note of hedge fund sentiment from their 13F forms. When analyzing the funds we track, Mason Hawkins’s Southeastern Asset Management had the most valuable position in Chesapeake Energy Corporation (NYSE:CHK), worth close to $1.8252 billion, accounting for 8.2% of its total 13F portfolio. On Southeastern Asset Management’s heels is Carl Icahn of Icahn Capital LP, with a $1.2185 billion position; 7.2% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include Bruce Berkowitz’s Fairholme (FAIRX), Israel Englander’s Millennium Management and Mohnish Pabrai’s Mohnish Pabrai.

Also, insider buying is most useful when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Chesapeake Energy Corporation (NYSE:CHK) has experienced 2 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s check out activity in other stocks similar to Chesapeake Energy Corporation (NYSE:CHK). These stocks are Talisman Energy Inc. (USA) (NYSE:TLM), Cabot Oil & Gas Corporation (NYSE:COG), Southwestern Energy Company (NYSE:SWN), and Range Resources Corp. (NYSE:RRC). This group of stocks are in the independent oil & gas industry and their market caps are similar to CHK’s market cap.

This trio of indicators–short data, hedge fund info and insider trading history–are something all readers should pay attention to. Although it is hard to formulate a usable strategy from short interest data, hedge fund and insider sentiment give plenty of market beating opportunities if you know where to look.