Market Overview

Social Market Analytics Looks at Chesapeake Energy Corporation

Social Market Analytics Looks at Chesapeake Energy Corporation

This week, Social Market Analytics (SMA) looks at Chesapeake Energy Corporation (NYSE: CHK), a major independent energy producer engaging in the acquisition, exploration, development, and production of natural gas and oil properties in the United States.  The week of October 30 was difficult for shareholders of CHK as the company reported a substantial third quarter loss of $3.19 a share.  Shares of CHK fell 7.87% on November 2 as the company also stated a 25.3% decline in Q3 revenue from the year-earlier quarter, but analysts retained a more positive outlook about the company’s expected Q4 performance.  During the week, CHK appeared on SMA’s morning Flash Report, which identifies stocks, in the pre-market, with extreme sentiment levels that are likely to trade with high activity during the upcoming session.  On the morning of November 2, our analytics engine identified CHK as a stock with high negative sentiment from the universe of stocks tracked by SMA.  SMA’s sentiment metrics provided early indication of negative price trends for CHK as traders integrated the company’s financial performance and estimated Q4 outlook.

On October 30, SMA’s S-Score for CHK entered a significant decline into negative territory.  In the pre-market of November 1, CHK’s S-Score posted a level of -0.69 (Negative), a notable drop from positive levels seen 2 days prior.  CHK closed the November 1 session at $20.07 for a loss of 1%.  The behavior of SMA’s S-Factors measures market trading sentiment and can provide actionable signals for upcoming price movement.  The decline in market sentiment for CHK continued in the pre-market of November 2 as CHK’s S-Score displayed a large decrease to -2.1 (High Negative), coincident with a nine-fold increase in its S-Volume metric indicating unusually high social media activity for the stock. CHK gapped down at the open and continued to sell off during the session to close at $18.49, a loss of 7.87% for the day, on high volume, and at a net loss 8% for the week.

Social Media data are noisy and complex.  A single metric is insufficient to understand sentiment behavior over time.  Our S-Factors are a family of metrics, including volatility, trend and volume measures, designed to provide a complete view of the social media signature for each security tracked in SMA’s database.  SMA's processing engine continuously updates our S-Factors, capturing overnight and pre-market sentiment activities. Clients receive sentiment reports, prior to the U.S. market open, and intra-day sentiment estimatesfor tracked stocks, on-demand.   Clients have access to our Sentiment Alerts feature, which provides real-time notification of changes in sentiment metrics for the stocks on a client’s customized watch list.  We invite the reader to visit our website; investigate our market sentiment metrics for CHK, other stocks, industry sectors, and market indices; participate in our FAQ forum; and sign up for our Flash Report and Newsletter.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Trading Ideas


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