SM Energy Company (NYSE:SM) Declares Quarterly Dividend of $0.22

Key Points

• SM Energy declared a quarterly dividend of $0.22 per share, payable September 21 to shareholders of record on September 7. The dividend carries an annualized yield of approximately 2.4%, with a September 4 ex-dividend date.
• The dividend appears well covered, with a 15.9% payout ratio and four consecutive years of increases. Analysts expect next year’s earnings to support an estimated payout ratio of just 10.6%.
• SM Energy reported strong quarterly results, posting $2.19 in EPS versus $1.96 expected and $2.50 billion in revenue, up 215.3% year over year. The stock opened at $36.48, near its 12-month high of $38.25.

SM Energy Company (NYSE:SM - Get Free Report) declared a quarterly dividend on Monday, August 24th. Investors of record on Monday, September 7th will be paid a dividend of 0.22 per share by the energy company on Monday, September 21st. This represents a c) dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, September 4th.

SM Energy has raised its dividend by an average of 1.2%annually over the last three years and has increased its dividend every year for the last 4 years. SM Energy has a payout ratio of 15.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect SM Energy to earn $8.32 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 10.6%.

SM Energy Stock Down 1.9%

SM stock opened at $36.48 on Tuesday. The stock has a market cap of $8.68 billion, a P/E ratio of 7.18 and a beta of 0.73. 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 has a twelve month low of $17.45 and a twelve month high of $38.25. The company's 50 day moving average is $30.34 and its two-hundred day moving average is $28.99.

SM Energy (NYSE:SM - Get Free Report) last posted its earnings results on Wednesday, August 5th. The energy company reported $2.19 EPS for the quarter, beating 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 for the quarter, compared to the consensus estimate of $2.02 billion. During the same period last year, the firm posted $1.50 EPS. The company's revenue was up 215.3% on a year-over-year basis. Research analysts expect that SM Energy will post 7.36 earnings per share for the current fiscal year.

Insider Activity at SM Energy

In other news, 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 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.45% of the company's stock.

Hedge Funds Weigh In On SM Energy

Institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada grew its stake in shares of SM Energy by 27.7% in the 1st quarter. Royal Bank of Canada now owns 91,916 shares of the energy company's stock valued at $2,753,000 after purchasing an additional 19,965 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of SM Energy by 43.9% in the first quarter. AQR Capital Management LLC now owns 145,922 shares of the energy company's stock valued at $4,370,000 after purchasing an additional 44,542 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of SM Energy by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 68,111 shares of the energy company's stock worth $2,040,000 after purchasing an additional 2,969 shares during the last quarter. NewEdge Advisors LLC raised its stake in shares of SM Energy by 44.9% during the first quarter. NewEdge Advisors LLC now owns 3,248 shares of the energy company's stock worth $97,000 after purchasing an additional 1,007 shares during the last quarter. Finally, United Services Automobile Association acquired a new stake in shares of SM Energy during the first quarter worth $222,000. Institutional investors and hedge funds own 94.56% of the company's stock.

SM Energy Company Profile

SM Energy Company NYSE: SM is an independent energy firm engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in the United States. The company focuses on identifying and exploiting unconventional onshore basins, leveraging advanced drilling and completion techniques to optimize resource recovery. SM Energy's operations are supported by an integrated approach to reservoir management and strategic midstream partnerships, enabling efficient transportation and marketing of hydrocarbons.

The company's core asset areas include prolific basins such as the Permian, Eagle Ford, and the Rocky Mountain region.

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