Donald Smith & CO. Inc. Takes Position in SM Energy Company $SM

Key Points

• Donald Smith & Co. acquired 7.65 million SM Energy shares in the second quarter, worth approximately $199.6 million. The position represents 3.5% of the fund’s portfolio and about 3.22% of SM Energy’s outstanding shares.
• SM Energy reported strong quarterly results, with adjusted earnings of $2.19 per share versus the $1.96 consensus estimate and revenue of $2.50 billion, up 215.3% year over year.
• Analyst sentiment is broadly positive: SM Energy has a “Moderate Buy” consensus rating and an average price target of $37.93, while shares recently traded at $37.34 near their 52-week high.

Donald Smith & CO. Inc. bought a new stake in SM Energy Company (NYSE:SM - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund bought 7,647,594 shares of the energy company's stock, valued at approximately $199,602,000. SM Energy comprises approximately 3.5% of Donald Smith & CO. Inc.'s portfolio, making the stock its 9th largest position. Donald Smith & CO. Inc. owned about 3.22% of SM Energy as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Royal Bank of Canada lifted its position in SM Energy by 27.7% in the first 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 grew 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 worth $4,370,000 after purchasing an additional 44,542 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of SM Energy by 4.6% in 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 increased its stake in shares of SM Energy by 44.9% in the first quarter. NewEdge Advisors LLC now owns 3,248 shares of the energy company's stock worth $97,000 after buying an additional 1,007 shares during the period. Finally, United Services Automobile Association purchased a new position in shares of SM Energy in the first quarter worth $222,000. 94.56% of the stock is currently owned by hedge funds and other institutional investors.

SM Energy Stock Down 0.8%

Shares of SM Energy stock opened at $37.34 on Friday. SM Energy Company has a 1 year low of $17.45 and a 1 year high of $38.25. The firm has a market cap of $8.88 billion, a price-to-earnings ratio of 7.35 and a beta of 0.73. The company has a 50-day moving average of $30.18 and a 200 day moving average of $28.80. The company has a debt-to-equity ratio of 0.85, a current ratio of 0.62 and a quick ratio of 0.62.

SM Energy (NYSE:SM - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The energy company reported $2.19 EPS for the quarter, topping the consensus estimate of $1.96 by $0.23. The business had revenue of $2.50 billion for the quarter, compared to analyst estimates of $2.02 billion. SM Energy had a net margin of 18.20% and a return on equity of 17.93%. SM Energy's quarterly revenue was up 215.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.50 earnings per share. As a group, sell-side analysts anticipate that SM Energy Company will post 7.36 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have weighed in on SM shares. Truist Financial increased their price target on shares of SM Energy from $37.00 to $43.00 and gave the company a "buy" rating in a research report on Monday, August 10th. UBS Group started coverage on shares of SM Energy in a research report on Tuesday, July 14th. They issued a "buy" rating and a $36.00 price objective on the stock. Wells Fargo & Company raised shares of SM Energy from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $32.00 to $47.00 in a research note on Thursday, August 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of SM Energy in a report on Monday. Finally, 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 report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, SM Energy currently has an average rating of "Moderate Buy" and a consensus target price of $37.93.

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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