SM Energy (NYSE:SM) Shares Gap Up After Analyst Upgrade

SM Energy Company (NYSE:SM) shares gapped up before the market opened on Thursday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The stock had previously closed at $35.25, but opened at $36.64. SM Energy shares last traded at $36.7650, with a volume of 265,165 shares changing hands.

A number of other brokerages also recently commented on SM. Wells Fargo & Company upgraded SM Energy from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $32.00 to $47.00 in a report on Thursday, August 13th. Weiss Ratings raised shares of SM Energy from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 2nd. Stephens decreased their price objective on shares of SM Energy from $61.00 to $52.00 and set an “overweight” rating for the company in a report on Tuesday, July 7th. UBS Group raised their target price on shares of SM Energy from $36.00 to $48.00 and gave the stock a “buy” rating in a research report on Monday, September 14th. Finally, Stifel Nicolaus initiated coverage on shares of SM Energy in a research note on Wednesday, September 9th. They set a “hold” rating and a $42.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $39.81.

Insider Transactions at SM Energy

In other SM Energy news, Director Ashwin Venkatraman sold 3,650 shares of the company’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $38.28, for a total value of $139,722.00. Following the sale, the director owned 12,525 shares in the company, valued at approximately $479,457. This represents a 22.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP James Barker Lebeck sold 17,500 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $37.02, for a total transaction of $647,850.00. Following the transaction, the executive vice president directly owned 14,705 shares of the company’s stock, valued at $544,379.10. This represents a 54.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.45% of the company’s stock.

Trending Headlines about SM Energy

Here are the key news stories impacting SM Energy this week:

• Positive Sentiment: Zacks upgrades SM Energy to Strong Buy: The upgrade reinforces the company’s improving earnings-estimate and valuation outlook, potentially encouraging additional buying from momentum- and quantitative-focused investors. Should Value Investors Buy SM Energy Stock?
• Positive Sentiment: Added to multiple Zacks Strong Buy lists: SM Energy was included in Zacks’ Strong Buy lists for overall stocks, value stocks and income stocks. The broad-based recognition highlights its combination of earnings momentum, valuation and potential income appeal. New Strong Buy Stocks for October 8th
• Positive Sentiment: Wall Street sentiment remains favorable: Recent coverage points to optimistic sell-side recommendations, which can support the stock by improving investor confidence and potentially increasing demand. Wall Street Bulls Look Optimistic About SM Energy
• Positive Sentiment: Technical momentum improved: SM Energy’s shares crossed above their 200-day moving average, a commonly watched bullish technical signal that may attract trend-following investors. SM Energy Share Price Crosses Above 200 Day Moving Average
• Neutral Sentiment: Other Zacks articles compare SM Energy’s year-to-date performance with peers and examine its value profile, but they do not identify a new operational development or material change to earnings guidance. SM Energy’s previously reported earnings and revenue beats provide additional fundamental support, although the stock remains sensitive to oil and gas prices.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada raised its stake in shares of SM Energy by 112.1% in the first quarter. Royal Bank of Canada now owns 94,115 shares of the energy company’s stock worth $2,935,000 after purchasing an additional 49,740 shares during the last quarter. GSA Capital Partners LLP purchased a new stake in shares of SM Energy during the second quarter valued at $2,243,000. Readystate Asset Management LP increased its holdings in SM Energy by 293.3% in the 2nd quarter. Readystate Asset Management LP now owns 222,880 shares of the energy company’s stock worth $5,817,000 after buying an additional 166,208 shares in the last quarter. Leeward Investments LLC MA bought a new stake in SM Energy in the 1st quarter worth about $13,299,000. Finally, Catalyst Capital Advisors LLC bought a new position in SM Energy during the 1st quarter valued at about $1,053,000. Hedge funds and other institutional investors own 94.56% of the company’s stock.

SM Energy Stock Performance

The business’s fifty day moving average price is $35.32 and its 200-day moving average price is $31.94. The stock has a market cap of $8.80 billion, a PE ratio of 7.28 and a beta of 0.95. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.62 and a current ratio of 0.62.

SM Energy (NYSE:SM) last issued its quarterly earnings data on Wednesday, August 5th. The energy company reported $2.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.96 by $0.23. SM Energy had a net margin of 18.20% and a return on equity of 17.93%. The company had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.02 billion. During the same quarter in the prior year, the firm earned $1.50 earnings per share. The firm’s revenue for the quarter was up 215.3% compared to the same quarter last year. As a group, equities research analysts forecast that SM Energy Company will post 7.55 EPS for the current fiscal year.

SM Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 21st. Investors of record on Monday, September 7th were given a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Friday, September 4th. SM Energy’s dividend payout ratio is 17.32%.

SM Energy Company Profile

SM Energy Company is an independent energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. Its operations focus on onshore properties in the United States, with activities concentrated in major producing regions such as the Permian Basin in West Texas and the South Texas Eagle Ford.

The company’s products include crude oil, natural gas, and natural gas liquids, which it sells to energy marketers, midstream companies, and other purchasers.