SM Energy (NYSE:SM) Stock Breaks Below Fifty Day Moving Average Following Weak Earnings

Shares of SM Energy Company (NYSE:SM) crossed below its fifty day moving average during trading on Tuesday following a dissappointing earnings announcement. The stock has a fifty day moving average of $37.15 and traded as low as $36.50. SM Energy shares last traded at $36.7070, with a volume of 2,989,855 shares traded.

The energy company reported $1.95 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.01 by ($0.06). SM Energy had a return on equity of 17.93% and a net margin of 18.20%. The firm had revenue of $2.16 billion for the quarter, compared to analysts’ expectations of $2.04 billion. During the same period in the previous year, the business posted $1.33 EPS. The business’s revenue for the quarter was up 167.2% compared to the same quarter last year.

SM Energy Dividend Announcement

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

Key Headlines Impacting SM Energy

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

• Positive Sentiment: Q3 revenue rose 167.2% year over year to $2.16 billion, topping the roughly $2.04 billion analyst estimate. EPS also increased from $1.33 a year earlier. Article: SM Energy surprises with Q3 2026 sales
• Positive Sentiment: The company generated $1.1 billion in operating cash flow, used $417 million to redeem debt and returned $133 million to stockholders—supportive of balance-sheet and shareholder-return priorities. Article: SM Energy Reports Third Quarter 2026 Results
• Negative Sentiment: Q3 EPS of $1.95 missed estimates of about $2.01–$2.03, ending a six-quarter streak of earnings beats. The miss is the clearest near-term negative despite the revenue strength. Article: SM Energy Q3 Earnings Lag Estimates

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on SM shares. UBS Group increased their price objective on SM Energy from $36.00 to $48.00 and gave the company a “buy” rating in a report on Monday, September 14th. Susquehanna lifted their target price on shares of SM Energy from $32.00 to $44.00 and gave the company a “neutral” rating in a report on Tuesday, October 20th. Mizuho set a $39.00 target price on shares of SM Energy in a report on Wednesday, October 7th. Zacks Research upgraded shares of SM Energy from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, October 7th. Finally, Scotiabank assumed coverage on shares of SM Energy in a research report on Wednesday, October 14th. They set a “sector perform” rating and a $39.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $40.59.

Insider Activity at SM Energy

In other news, EVP James Barker Lebeck sold 17,500 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $37.02, for a total value of $647,850.00. Following the transaction, the executive vice president owned 14,705 shares of the company’s stock, valued at approximately $544,379.10. The trade was a 54.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Ashwin Venkatraman sold 3,650 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The stock was 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 of the company’s stock, valued at $479,457. This trade represents a 22.57% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On SM Energy

Institutional investors have recently bought and sold shares of the company. Kornitzer Capital Management Inc. KS lifted its stake in shares of SM Energy by 24.2% in the 3rd quarter. Kornitzer Capital Management Inc. KS now owns 126,280 shares of the energy company’s stock worth $4,266,000 after acquiring an additional 24,638 shares during the period. Heritage Family Offices LLP purchased a new stake in shares of SM Energy in the third quarter valued at about $30,000. Kestra Advisory Services LLC increased its stake in shares of SM Energy by 4.7% during the third quarter. Kestra Advisory Services LLC now owns 15,347 shares of the energy company’s stock worth $518,000 after acquiring an additional 682 shares during the period. Commonwealth Equity Services LLC increased its stake in shares of SM Energy by 5.8% during the third quarter. Commonwealth Equity Services LLC now owns 11,765 shares of the energy company’s stock worth $397,000 after acquiring an additional 641 shares during the period. Finally, Oregon Public Employees Retirement Fund increased its stake in shares of SM Energy by 3.5% during the third quarter. Oregon Public Employees Retirement Fund now owns 53,395 shares of the energy company’s stock worth $1,804,000 after acquiring an additional 1,800 shares during the period. 94.56% of the stock is owned by institutional investors and hedge funds.

SM Energy Stock Down 2.0%

The stock has a market capitalization of $8.73 billion, a PE ratio of 7.23 and a beta of 0.80. The firm’s fifty day moving average is $37.15 and its 200-day moving average is $30.40. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.85.

About SM Energy

SM Energy Company is an independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. Its activities include acquiring prospective acreage, drilling and completing wells, and managing producing properties in U.S. onshore oil and gas basins.

The company’s operations are primarily concentrated in Texas, including the Midland Basin in West Texas and the Eagle Ford shale region in South Texas. SM Energy focuses on development of unconventional resources and uses horizontal drilling and hydraulic fracturing technologies to produce hydrocarbons from shale and other tight-rock formations.

Founded in 1908 as St.