SM Energy (NYSE:SM) Stock Rating Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded SM Energy from “strong buy” to “buy.” Despite the cut, analysts’ overall consensus remains “Moderate Buy,” with an average price target of $39.82.
• In its latest quarter, SM Energy reported EPS of $1.95, slightly below the $2.01 consensus, while revenue of $2.16 billion topped estimates and rose 167.2% year over year.
• SM shares opened at $29.83, below their 50-day moving average of $36.81; the stock’s 52-week range is $17.45 to $41.56.

SM Energy (NYSE:SM - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday, Wall Street Zen reports.

SM has been the subject of a number of other reports. Weiss Ratings upgraded shares of SM Energy from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, October 16th. Stifel Nicolaus began coverage on SM Energy in a report on Wednesday, September 9th. They set a "hold" rating and a $42.00 price objective for the company. Susquehanna cut their price target on shares of SM Energy from $44.00 to $33.00 and set a "neutral" rating on the stock in a report on Thursday. Mizuho set a $39.00 price objective on shares of SM Energy in a research report on Wednesday, October 7th. Finally, UBS Group upped their target price on SM Energy from $36.00 to $48.00 and gave the company a "buy" rating in a report on Monday, September 14th. Two equities 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. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $39.82.

SM Energy Price Performance

Shares of SM stock opened at $29.83 on Friday. The stock's 50-day moving average is $36.81 and its 200 day moving average is $30.58. 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 company has a market cap of $7.10 billion, a P/E ratio of 7.24 and a beta of 0.80. SM Energy has a 1-year low of $17.45 and a 1-year high of $41.56.

SM Energy (NYSE:SM - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The energy company reported $1.95 earnings per share for the quarter, missing analysts' consensus estimates of $2.01 by ($0.06). The company had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.04 billion. SM Energy had a return on equity of 17.93% and a net margin of 18.20%. The business's quarterly revenue was up 167.2% on a year-over-year basis. During the same period last year, the firm posted $1.33 EPS. Research analysts predict that SM Energy will post 8.13 earnings per share for the current fiscal year.

Insider Transactions at SM Energy

In other news, EVP James Barker Lebeck sold 17,500 shares of SM Energy stock in a transaction that occurred 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 sale, 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 filing with the SEC, which is accessible through the SEC website. Also, Director Ashwin Venkatraman sold 3,650 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $38.28, for a total transaction of $139,722.00. Following the sale, the director directly owned 12,525 shares in the company, valued at $479,457. This trade 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 owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SM. SBI Securities Co. Ltd. boosted its stake in SM Energy by 14.2% during the third quarter. SBI Securities Co. Ltd. now owns 2,109 shares of the energy company's stock valued at $71,000 after buying an additional 262 shares in the last quarter. Unison Advisors LLC lifted its holdings in shares of SM Energy by 0.8% during the third quarter. Unison Advisors LLC now owns 36,913 shares of the energy company's stock worth $1,247,000 after purchasing an additional 289 shares during the period. IFP Advisors Inc lifted its stake in SM Energy by 1.8% during the 2nd quarter. IFP Advisors Inc now owns 18,006 shares of the energy company's stock valued at $470,000 after acquiring an additional 315 shares in the last quarter. Gryphon Financial Partners LLC lifted its holdings in shares of SM Energy by 2.6% in the third quarter. Gryphon Financial Partners LLC now owns 13,409 shares of the energy company's stock worth $453,000 after buying an additional 342 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in shares of SM Energy by 3.8% during the second quarter. GAMMA Investing LLC now owns 10,108 shares of the energy company's stock valued at $264,000 after acquiring an additional 371 shares during the last quarter. 94.56% of the stock is owned by institutional investors.

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.

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