Chesapeake Utilities (NYSE:CPK) Sets New 12-Month High - Time to Buy?

Key Points

• Chesapeake Utilities shares reached a new 52-week high of $140.83, trading near $139.83. Despite the rally, analysts maintain a consensus “Hold” rating with an average price target of $137.
• The company exceeded quarterly expectations, reporting EPS of $2.47 versus the $2.38 consensus and revenue of $353.1 million, up 18.2% year over year.
• Chesapeake Utilities raised its quarterly dividend to $0.735 per share, equivalent to an annualized $2.94 payout and a 2.1% yield. Institutional investors own 83.11% of the company, while recent insider sales included transactions by the CEO and a senior vice president.

Chesapeake Utilities Corporation (NYSE:CPK - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $140.83 and last traded at $139.83, with a volume of 21788 shares changing hands. The stock had previously closed at $135.61.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Weiss Ratings upgraded shares of Chesapeake Utilities from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, July 10th. Barclays set a $142.00 price objective on shares of Chesapeake Utilities and gave the stock an "equal weight" rating in a report on Monday, April 20th. Finally, Wells Fargo & Company started coverage on shares of Chesapeake Utilities in a research report on Tuesday, May 12th. They issued an "equal weight" rating and a $132.00 price objective for the company. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $137.00.

Chesapeake Utilities Stock Performance

The company's fifty day simple moving average is $125.85 and its two-hundred day simple moving average is $127.60. The company has a market capitalization of $3.34 billion, a price-to-earnings ratio of 22.29 and a beta of 0.69. The company has a debt-to-equity ratio of 0.80, a quick ratio of 0.39 and a current ratio of 0.43.

Chesapeake Utilities (NYSE:CPK - Get Free Report) last issued its earnings results on Wednesday, May 6th. The utilities provider reported $2.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.38 by $0.09. The business had revenue of $353.10 million for the quarter, compared to analyst estimates of $339.86 million. Chesapeake Utilities had a net margin of 15.11% and a return on equity of 9.53%. The company's revenue for the quarter was up 18.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.22 EPS. Chesapeake Utilities has set its FY 2028 guidance at 7.750-8.00 EPS. Equities research analysts predict that Chesapeake Utilities Corporation will post 6.46 earnings per share for the current fiscal year.

Chesapeake Utilities Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, July 6th. Shareholders of record on Monday, June 15th were issued a dividend of $0.735 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.94 dividend on an annualized basis and a yield of 2.1%. This is a boost from Chesapeake Utilities's previous quarterly dividend of $0.69. Chesapeake Utilities's dividend payout ratio (DPR) is 47.12%.

Insider Activity at Chesapeake Utilities

In related news, CEO Jeffry M. Householder sold 10,000 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $126.12, for a total transaction of $1,261,200.00. Following the transaction, the chief executive officer directly owned 63,001 shares in the company, valued at $7,945,686.12. This trade represents a 13.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Kevin J. Webber sold 2,000 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $127.37, for a total value of $254,740.00. Following the transaction, the senior vice president owned 12,652 shares in the company, valued at $1,611,485.24. This trade represents a 13.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.36% of the stock is currently owned by company insiders.

Institutional Trading of Chesapeake Utilities

A number of institutional investors and hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC lifted its position in shares of Chesapeake Utilities by 31.6% in the 4th quarter. EverSource Wealth Advisors LLC now owns 325 shares of the utilities provider's stock worth $41,000 after buying an additional 78 shares during the last quarter. Versant Capital Management Inc raised its stake in Chesapeake Utilities by 38.8% during the second quarter. Versant Capital Management Inc now owns 304 shares of the utilities provider's stock worth $37,000 after acquiring an additional 85 shares during the period. Wealthspire Advisors LLC raised its stake in Chesapeake Utilities by 0.3% during the fourth quarter. Wealthspire Advisors LLC now owns 29,488 shares of the utilities provider's stock worth $3,679,000 after acquiring an additional 93 shares during the period. Franklin Resources Inc. lifted its holdings in Chesapeake Utilities by 6.1% in the fourth quarter. Franklin Resources Inc. now owns 1,646 shares of the utilities provider's stock worth $205,000 after acquiring an additional 95 shares during the last quarter. Finally, Intrust Bank NA lifted its holdings in Chesapeake Utilities by 2.2% in the fourth quarter. Intrust Bank NA now owns 4,540 shares of the utilities provider's stock worth $566,000 after acquiring an additional 97 shares during the last quarter. 83.11% of the stock is owned by institutional investors and hedge funds.

Chesapeake Utilities Company Profile

Chesapeake Utilities Corporation NYSE: CPK is a diversified energy services holding company headquartered in Dover, Delaware. Through its operating subsidiaries, the company engages in natural gas distribution, transmission and storage; propane distribution; wholesale propane supply; and contract compression and natural gas liquids processing. Its core mission is to provide safe, reliable and cost-effective energy solutions to residential, commercial and industrial customers across multiple U.S.

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