SM Energy (NYSE:SM) Hits New 1-Year High on Analyst Upgrade

Shares of SM Energy Company (NYSE:SM) reached a new 52-week high during mid-day trading on Monday after KeyCorp raised their price target on the stock from $39.00 to $46.00. KeyCorp currently has an overweight rating on the stock. SM Energy traded as high as $39.00 and last traded at $39.1410, with a volume of 24558 shares changing hands. The stock had previously closed at $38.10.

SM has been the topic of several other reports. Mizuho raised SM Energy to a “strong-buy” rating in a research note on Friday, July 31st. Raymond James Financial dropped their target price on shares of SM Energy from $55.00 to $48.00 and set an “outperform” rating for the company in a research report on Tuesday, July 21st. Zacks Research lowered shares of SM Energy from a “strong-buy” rating to a “hold” rating in a report on Monday, May 25th. Susquehanna lifted their price target on shares of SM Energy from $31.00 to $32.00 and gave the company a “neutral” rating in a research report on Tuesday, July 21st. Finally, Wall Street Zen downgraded shares of SM Energy from a “strong-buy” rating to a “buy” rating in a research note on Sunday, August 30th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $39.38.

Insider Activity

In related news, Director Ashwin Venkatraman sold 3,650 shares of the business’s stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $38.28, for a total value of $139,722.00. Following the transaction, the director owned 12,525 shares in the company, valued at approximately $479,457. The trade was a 22.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP James Barker Lebeck sold 17,500 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $37.02, for a total value of $647,850.00. Following the completion of 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. The disclosure for this sale is available in the SEC filing. 0.45% of the stock is owned by company insiders.

SM Energy News Roundup

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

• Positive Sentiment: Analyst target increases: UBS raised its price target on SM Energy from $36 to $48 and assigned a “Buy” rating. Separately, another analyst lifted the target to $46 while maintaining a positive view, providing a direct catalyst for the move. SM Energy target increase report SM Energy analyst target and crude prices report
• Positive Sentiment: Higher oil prices: Crude prices strengthened amid concerns about supply disruptions in the Middle East. Higher commodity prices can improve revenue, cash flow and valuation expectations for oil-focused producers such as SM Energy. SM Energy sector-wide rally report
• Positive Sentiment: Fundamental support: Recent results showed strong revenue and earnings growth, raised second-half production guidance, record operating cash flow and continued debt reduction. The company also reported substantial progress toward merger-related synergies and retired senior notes due through mid-2028, strengthening its balance-sheet narrative.
• Neutral Sentiment: Institutional positioning was mixed: Several large investors added SM shares during the second quarter, but other funds reduced their holdings. This suggests broad interest without a uniformly bullish institutional signal.
• Negative Sentiment: Insider selling: Three insiders sold shares during the past six months, with no reported open-market purchases. While these transactions may be routine, they represent a modest counterpoint to the positive analyst and commodity-price catalysts.

Hedge Funds Weigh In On SM Energy

A number of institutional investors have recently made changes to their positions in SM. Torren Management LLC lifted its holdings in SM Energy by 4,561.1% during the 1st quarter. Torren Management LLC now owns 839 shares of the energy company’s stock worth $26,000 after buying an additional 821 shares during the last quarter. Center for Financial Planning Inc. acquired a new position in shares of SM Energy in the 1st quarter worth approximately $31,000. Valued Wealth Advisors LLC bought a new stake in shares of SM Energy in the 1st quarter valued at approximately $33,000. Kilter Group LLC bought a new stake in shares of SM Energy in the 2nd quarter valued at approximately $28,000. Finally, Assetmark Inc. acquired a new stake in shares of SM Energy during the 1st quarter valued at approximately $35,000. 94.56% of the stock is owned by institutional investors and hedge funds.

SM Energy Stock Performance

The company has a 50-day moving average of $33.75 and a 200-day moving average of $30.77. The firm has a market capitalization of $9.81 billion, a price-to-earnings ratio of 8.12 and a beta of 0.75. The company has a current ratio of 0.62, a quick ratio of 0.62 and a debt-to-equity ratio of 0.85.

SM Energy (NYSE:SM) last released its quarterly earnings data on Wednesday, August 5th. The energy company reported $2.19 EPS for the quarter, topping 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 firm had revenue of $2.50 billion during the quarter, compared to the consensus estimate of $2.02 billion. During the same quarter in the previous year, the company posted $1.50 earnings per share. The firm’s revenue was up 215.3% on a year-over-year basis. On average, equities research analysts forecast that SM Energy Company will post 7.48 earnings per share for the current fiscal year.

SM Energy Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 21st. Stockholders of record on Monday, September 7th will be issued a $0.22 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.88 annualized dividend and a dividend yield of 2.1%. SM Energy’s payout ratio is 17.32%.

About SM Energy

SM Energy Company (NYSE: SM) is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids. Its operations focus on acquiring and developing oil and gas properties and producing hydrocarbons from onshore assets in the United States.

The company’s principal operations are concentrated in the Permian Basin of West Texas and the South Texas region. SM Energy has also expanded its U.S. operating portfolio through acquisitions, including assets in Utah’s Uinta Basin.