Bank of America Corp DE Increases Holdings in Chesapeake Energy Co. as part of Sustainability Goals

Written by Amanda

Bank of America Corp DE, a financial institution renowned for its array of services in investment and banking, recently announced a sizeable increase in its holdings in Chesapeake Energy Co. (NASDAQ:CHK). According to the bank’s most recent filing with the Securities and Exchange Commission (SEC), Bank of America Corp DE now owns approximately 757,834 shares in Chesapeake Energy Co., representing an increase of 6.3% from the previous quarter, where it owned 713,192 shares.

The transaction further solidifies Bank of America’s commitment to investing in companies positioned for long-term growth, quality management structures, sound financials and a promising future outlook – hallmarks that Chesapeake Energy has exhibited since inception.

Chesapeake Energy is an independent oil and gas exploration company with operations spread across multiple sites within the US. Over the years, its areas of interest have evolved towards natural gas resource plays in Pennsylvania and northwestern Louisiana; as well as liquids-rich resource plays in South Texas. The company is fast becoming one to reckon with concerning output alongside other industry leaders.

As of June 5th, this year, shares of NASDAQ: CHK opened at $79.63 – boasting a significant boost from its 12-month low ($69.68) with BofA’s results pointing towards better days ahead for investors who wish to dabble in energy stocks. CHK’s price-to-earnings ratio (PE) stands at an enviable value of 1.66 coupled with a present stock market capitalization value worth over $10 billion.

The bank disclosed that these investments would not only be profitable but also merge sustainability goals by maintaining high ethical standards while generating risk-adjusted returns. As one of the leading banks worldwide concerned about environmental challenges such as climate change and sustainability issues, Bank Of America sets out to achieve these objectives through collaborations and initiatives that underscore the importance attached thereto.

In conclusion, Bank Of America’s move to increase its holdings in Chesapeake Energy serves as a signal of the exciting future ahead for the energy company. The company’s significant investment is expected to pave the way for even more substantial growth while maintaining eco-friendly practices – visions aligned with Bank Of America’s corporate objectives.


Strong Buy

Updated on: 05/06/2023

Price Target

Current $77.69

Concensus $98.00

Low $75.00

Median $98.00

High $117.00

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Analyst Ratings

Analyst / firm Rating
Mike Scialla
Citigroup Buy
Goldman Sachs Buy
Umang Choudhary
Goldman Sachs
William Janela
Credit Suisse

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Hedge Funds Increase Holdings in Chesapeake Energy, Triggering Speculation on its Future

Chesapeake Energy, an independent exploration and production company, has recently seen a number of hedge funds modify their holdings of the stock, with significant increases reported for Prelude Capital Management LLC, Vanguard Group Inc., Two Sigma Investments LP, Clearbridge Investments LLC, and Arrowstreet Capital Limited Partnership.

Such moves by major investors are triggering speculation about the future of Chesapeake Energy. TheStreet recently raised its rating on the company from “c+” to “b-“, while UBS Group initiated coverage with a “buy” rating and a price target of $101 per share. Bloomberg.com currently lists a consensus rating of “Moderate Buy” and a consensus price target of $110.54.

Chesapeake Energy has interests in natural gas resource plays in the Marcellus Shale in Pennsylvania, the Haynesville/Bossier Shales in Louisiana, and Eagle Ford Shale in South Texas. The company reported $1.87 earnings per share (EPS) for Q1 2023 – beating analysts’ estimates –with revenue for the quarter standing at $3.37 billion compared to the consensus estimate of $1.25 billion.

An increase in quarterly dividends has also been announced by Chesapeake Energy, destined for payout on June 6th. The dividend payment will be higher than previously announced at $1.18 per share; this stands as an annualized rate of $4.72 dollars representing a yield of 5.93%.

Even with all these developments in recent weeks, it remains difficult to predict how long-term prospects may pan out for Chesapeake Energy’s investors until more definitive results are available making it still too early to say whether this represents sound investment opportunity.

Source: beststocks.com

About the author


Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai