Southwestern Energy Company [NYSE: SWN] jumped around -18.42 points on Friday, while shares priced at $6.48 at the close of the session, up 6.43%. The company report on January 11, 2024 at 6:00 AM that CHESAPEAKE ENERGY CORPORATION AND SOUTHWESTERN ENERGY TO COMBINE TO ACCELERATE AMERICA’S ENERGY REACH.
Chesapeake Energy Corporation (NASDAQ: CHK) and Southwestern Energy Company (NYSE: SWN) today announced that they have entered into an agreement to merge in an all-stock transaction valued at $7.4 billion, or $6.69 per share, based on Chesapeake’s closing price on January 10, 2024. Under the terms of the agreement, Southwestern shareholders will receive 0.0867 shares of Chesapeake common stock for each share of Southwestern common stock outstanding at closing.
The strategic combination will create a premier energy company underpinned by a leading natural gas portfolio adjacent to the highest demand markets, premium inventory, resilient free cash flow, and an Investment Grade quality balance sheet. The combined company, which will assume a new name at closing, will be uniquely positioned to deliver affordable, lower carbon energy to meet growing domestic and international demand with significant, sustainable cash returns to shareholders through cycles.
Compared to the average trading volume of 0.53 shares, SWN reached a trading volume of 19.89M in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Southwestern Energy Company [SWN]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SWN shares is $7.76 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SWN stock is a recommendation set at 2.35. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Seaport Research Partners have made an estimate for Southwestern Energy Company shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 31, 2024.
The Average True Range (ATR) for Southwestern Energy Company is set at 0.18, with the Price to Sales ratio for SWN stock in the period of the last 12 months amounting to 0.86. The Price to Book ratio for the last quarter was 1.08, with the Price to Cash per share for the same quarter was set at 0.02. Price to Free Cash Flow for SWN in the course of the last twelve months was 10.54 with Quick ratio for the last quarter at 0.59.
How has SWN stock performed recently?
Southwestern Energy Company [SWN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.31. With this latest performance, SWN shares dropped by -6.68% in over the last four-week period, additionally sinking by -0.46% over the last 6 months – not to mention a rise of 26.08% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SWN stock in for the last two-week period is set at 46.81, with the RSI for the last a single of trading hit 46.47, and the three-weeks RSI is set at 47.29 for Southwestern Energy Company [SWN]. The present Moving Average for the last 50 days of trading for this stock 6.50, while it was recorded at 6.41 for the last single week of trading, and 6.22 for the last 200 days.
Southwestern Energy Company [SWN]: Deeper insight into the fundamentals
Southwestern Energy Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.59 and a Current Ratio set at 0.59.
Earnings analysis for Southwestern Energy Company [SWN]
With the latest financial reports released by the company, Southwestern Energy Company posted 0.26/share EPS, while the average EPS was predicted by analysts to be reported at 0.27/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -3.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SWN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Southwestern Energy Company go to 21.00%.
Insider trade positions for Southwestern Energy Company [SWN]
The top three institutional holders of SWN stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in SWN stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in SWN stock with ownership which is approximately 5.8325%.
