SM Energy (NYSE:SM) Shares Gap Down After Earnings Miss

Shares of SM Energy Company (NYSE:SM) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $36.67, but opened at $34.04. SM Energy shares last traded at $33.9310, with a volume of 425,080 shares trading hands.

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

SM Energy Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 21st. Shareholders of record on Monday, September 7th were paid a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend was Friday, September 4th. SM Energy’s dividend payout ratio (DPR) is presently 17.32%.

Key Headlines Impacting SM Energy

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

• Positive Sentiment: Revenue rose 167.2% year over year to $2.16 billion, beating the $2.04 billion consensus. Operating cash flow was $1.1 billion, and reports said quarterly cash flow more than doubled as merger synergies reached $400 million. SM Energy Reports Third Quarter 2026 Results SM Energy Q3 cash flow more than doubles as merger synergies hit $400 million
• Positive Sentiment: Strong cash generation helped fund $417 million of debt redemption and $133 million returned to stockholders, supporting deleveraging and shareholder returns. SM Energy Reports Third Quarter 2026 Results
• Neutral Sentiment: Some coverage questioned whether the shares remain a bargain after a 103% run, suggesting expectations and valuation may temper enthusiasm despite the revenue beat. Can SM Energy (SM) Still Be A Bargain After A 103% Run?
• Negative Sentiment: Third-quarter EPS of $1.95 missed analyst estimates of about $2.01, although it was up from $1.33 a year earlier. The shortfall could weigh on sentiment despite the substantial revenue growth. SM Energy (SM) Q3 Earnings Lag Estimates

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on SM shares. Stifel Nicolaus began coverage on SM Energy in a research report on Wednesday, September 9th. They set a “hold” rating and a $42.00 price target on the stock. Mizuho set a $39.00 price objective on SM Energy in a report on Wednesday, October 7th. Raymond James Financial restated an “outperform” rating and issued a $50.00 price objective on shares of SM Energy in a report on Wednesday, October 21st. KeyCorp raised their target price on SM Energy from $39.00 to $46.00 and gave the company an “overweight” rating in a research note on Tuesday, September 15th. Finally, Susquehanna lifted their target price on SM Energy from $32.00 to $44.00 and gave the stock a “neutral” rating in a report on Tuesday, October 20th. 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. Based on data from MarketBeat, SM Energy currently has an average rating of “Moderate Buy” and an average target price of $40.59.

Insider Buying and Selling at SM Energy

In other news, EVP James Barker Lebeck sold 17,500 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $37.02, for a total transaction of $647,850.00. Following the completion of the sale, the executive vice president owned 14,705 shares in the company, valued at approximately $544,379.10. This represents a 54.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ashwin Venkatraman sold 3,650 shares of the firm’s stock in a transaction 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 directly owned 12,525 shares of the company’s stock, valued at approximately $479,457. This represents a 22.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.45% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SM Energy

Hedge funds have recently modified their holdings of the stock. SBI Securities Co. Ltd. raised its holdings in SM Energy by 14.2% during the 3rd quarter. SBI Securities Co. Ltd. now owns 2,109 shares of the energy company’s stock worth $71,000 after buying an additional 262 shares during the period. Unison Advisors LLC boosted its holdings in shares of SM Energy by 0.8% in the third quarter. Unison Advisors LLC now owns 36,913 shares of the energy company’s stock worth $1,247,000 after buying an additional 289 shares during the period. IFP Advisors Inc increased its position in shares of SM Energy by 1.8% in the second quarter. IFP Advisors Inc now owns 18,006 shares of the energy company’s stock worth $470,000 after acquiring an additional 315 shares in the last quarter. GAMMA Investing LLC increased its position in shares of SM Energy by 3.8% in the second quarter. GAMMA Investing LLC now owns 10,108 shares of the energy company’s stock worth $264,000 after acquiring an additional 371 shares in the last quarter. Finally, Quad Cities Investment Group LLC increased its position in shares of SM Energy by 2.8% in the second quarter. Quad Cities Investment Group LLC now owns 13,777 shares of the energy company’s stock worth $360,000 after acquiring an additional 375 shares in the last quarter. 94.56% of the stock is owned by hedge funds and other institutional investors.

SM Energy Price Performance

The stock’s fifty day moving average price is $37.15 and its 200-day moving average price is $30.40. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.62 and a quick ratio of 0.62. The firm has a market cap of $8.05 billion, a price-to-earnings ratio of 6.66 and a beta of 0.80.

SM Energy Company Profile

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.