According to a Monday Wall Street Journal report, struggling natural gas producer Chesapeake Energy Corporation (CHK) will soon disclose an increased stake in the company by activist billionaire investor Carl Icahn.
Reportedly, Icahn Enterprises L.P. boosted its stake recently in CHK after cutting its stake down to around 5% back in 2011. Additionally, Chesapeake said it secured a $3 billion loan with Goldman Sachs and Jefferies Group Inc.
CHK shares have fallen more than 50% in the past year, as the price of natural gas has tumbled to multi-year lows. Earlier this month, the company posted disappointing first quarter results.
Chesapeake Energy shares rose 59 cents, or +4%, in premarket trading Monday.
The Bottom Line
Shares of Chesapeake Energy (CHK) have a 2.36% dividend yield, based on Friday’s closing stock price of $14.81. The stock has technical support in the $11-$14 price area. If the shares can firm up, we see overhead resistance around the $17-$20 price levels.
Chesapeake Energy Corporation (CHK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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