2. Chesapeake Energy Corporation (NYSE:CHK)
Year-to-Date Return as of November 4: 51.57%
Number of Hedge Fund Holders: 67
Chesapeake Energy Corporation (NYSE:CHK) operates as an independent oil and gas exploration company in the United States. The company is well-positioned to benefit from the secular growth trends in the LNG space and is expected to capture further market share. As of November 4, Chesapeake Energy Corporation (NYSE:CHK) has gone up by 51.57% since the beginning of the year and is expected to appreciate further. Chesapeake Energy Corporation (NYSE:CHK) is ranked among the stocks to buy now that are on the rise.
On October 19, Jefferies analyst Lloyd Byrne took coverage of Chesapeake Energy Corporation (NYSE:CHK) with a Buy rating and a $150 price target.
Chesapeake Energy Corporation (NYSE:CHK) is profitable and efficient at making profits for shareholders. The company has a trailing twelve-month operating margin of 20.65% and an ROE of 59.46%. The company is also paying a hefty dividend to investors and, as of November 4, is offering a forward dividend yield of 9.24%.
At the end of Q2 2022, 67 hedge funds were long Chesapeake Energy Corporation (NYSE:CHK) and disclosed stakes worth $3.52 billion in the company. This is compared to 59 positions in the preceding quarter with stakes worth $3.51 billion. The hedge fund sentiment for the stock is positive.
As of June 30, Oaktree Capital Management is the top investor in Chesapeake Energy Corporation (NYSE:CHK) and has a stake of $851.6 million in the company.
Here is what Miller Value Partners had to say about Chesapeake Energy Corporation (NASDAQ:CHK) in its third-quarter 2022 investor letter:
“Chesapeake Energy Corporation (NASDAQ:CHK) gained 19.1%2 in the period. The company reported 2Q22 Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Exploration Expense (EBITDAX) of $1,269MM, +195.8% Y/Y, ahead of consensus of $1,226MM, and Adjusted Earnings per Share (EPS) of $4.87, compared to 2Q21 EPS of $1.64, ahead of analyst expectations for EPS of $3.82. Chesapeake generated adjusted free cash flow (FCF) of $494MM, bringing TTM FCF to $1,663MM, or a FCF yield of 14.4%. Management also raised the company’s base dividend by 10% to $2.20/share, bringing the total quarterly dividend to $2.32/share, or an annualized yield of ~9.7%. Additionally, the company doubled its existing share repurchase authorization from $1B to $2B and has executed $670MM in repurchases so far through 7/31/22. Collectively, management is guiding for $1.2B in total FY22 dividends, at the midpoint, and $1B in share buybacks, implying total FY22 shareholder returns of $2.2B, or ~19.1% of the company’s market cap.”
