Zacks Research Upgrades SM Energy (NYSE:SM) to "Strong-Buy"

Key Points

• Zacks Research upgraded SM Energy to “Strong Buy” from “Hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $39.81.
• SM Energy opened at $37.14 and has outperformed its moving averages, with a 12-month range of $17.45 to $41.56. The company trades at a relatively low P/E ratio of 7.31 and has an $8.83 billion market capitalization.
• The company exceeded quarterly expectations, reporting $2.19 in earnings per share versus a $1.96 estimate and $2.50 billion in revenue, up 215.3% year over year. However, two insiders recently sold shares, while institutional investors own 94.56% of the stock.

SM Energy (NYSE:SM - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday, Zacks reports.

Other equities research analysts have also recently issued reports about the company. Susquehanna upped their price target on SM Energy from $31.00 to $32.00 and gave the company a "neutral" rating in a research report on Tuesday, July 21st. Stifel Nicolaus initiated coverage on shares of SM Energy in a research note on Wednesday, September 9th. They issued a "hold" rating and a $42.00 target price on the stock. Stephens reduced their price target on shares of SM Energy from $61.00 to $52.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. Truist Financial upped their price target on shares of SM Energy from $43.00 to $48.00 and gave the stock a "buy" rating in a report on Wednesday. Finally, Seaport Research Partners began coverage on SM Energy in a research note on Thursday, September 3rd. They set a "sell" rating and a $35.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $39.81.

SM Energy Price Performance

SM opened at $37.14 on Wednesday. The firm has a 50-day moving average price of $35.22 and a 200-day moving average price of $31.90. SM Energy has a twelve month low of $17.45 and a twelve month high of $41.56. The company has a quick ratio of 0.62, a current ratio of 0.62 and a debt-to-equity ratio of 0.85. The company has a market capitalization of $8.83 billion, a price-to-earnings ratio of 7.31 and a beta of 0.95.

SM Energy (NYSE:SM - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The energy company reported $2.19 earnings per share for the quarter, beating the consensus estimate of $1.96 by $0.23. The company had revenue of $2.50 billion during the quarter, compared to analysts' expectations of $2.02 billion. SM Energy had a return on equity of 17.93% and a net margin of 18.20%.The firm's quarterly revenue was up 215.3% compared to the same quarter last year. During the same period in the previous year, the business earned $1.50 earnings per share. Equities analysts expect that SM Energy will post 7.55 EPS for the current year.

Insider Activity

In other news, EVP James Barker Lebeck sold 17,500 shares of the company's stock in a transaction dated Friday, August 21st. The stock was 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 in the company, valued at approximately $544,379.10. This represents a 54.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Ashwin Venkatraman sold 3,650 shares of the 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 transaction, the director owned 12,525 shares in the company, valued at $479,457. This trade represents a 22.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.45% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC raised its stake in shares of SM Energy by 18.7% during the third quarter. GAMMA Investing LLC now owns 11,997 shares of the energy company's stock worth $405,000 after acquiring an additional 1,889 shares in the last quarter. CoreCap Advisors LLC boosted its stake in shares of SM Energy by 211.2% in the 3rd quarter. CoreCap Advisors LLC now owns 974 shares of the energy company's stock valued at $33,000 after purchasing an additional 661 shares in the last quarter. Congress Asset Management Co. grew its holdings in shares of SM Energy by 21.5% during the 3rd quarter. Congress Asset Management Co. now owns 137,815 shares of the energy company's stock valued at $4,655,000 after purchasing an additional 24,370 shares during the last quarter. Cim Investment Management Inc. grew its holdings in shares of SM Energy by 7.3% during the 2nd quarter. Cim Investment Management Inc. now owns 7,677 shares of the energy company's stock valued at $200,000 after purchasing an additional 520 shares during the last quarter. Finally, QRG Capital Management Inc. raised its position in SM Energy by 14.2% in the 2nd quarter. QRG Capital Management Inc. now owns 9,551 shares of the energy company's stock worth $249,000 after purchasing an additional 1,186 shares during the period. 94.56% of the stock is currently owned by institutional investors.

About SM Energy

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.

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